Commentary

55.3 Drafting points—auditing, inspection and record-keeping clauses

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

55.3 Drafting points—auditing, inspection and record-keeping clauses

| Commentary

55.3 Drafting points—auditing, inspection and record-keeping clauses

When drafting an auditing, inspection and record-keeping clause, it is important to consider the following:

  1. (a)

        If the party who is to allow inspection refuses, what are the consequences? If the consequences are not clearly specified, a refusal to do so where there is a clear obligation to allow auditing of the licensee’s activities under a licence may entitle the licensor to terminate the licence1.

  2. (b)

        What records can another party examine? Can the party providing the records impose a restriction on what records are to be inspected? Alternatively, will the party who

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