Audit and Objections Clause Samples
The 'Audit and Objections' clause grants one party the right to review and verify the records or accounts of the other party to ensure compliance with the terms of the agreement. Typically, this involves allowing access to relevant documents, financial statements, or transaction records, and may set out procedures for raising and resolving any disputes or discrepancies found during the audit. The core function of this clause is to promote transparency and accountability, enabling parties to detect errors or misconduct and address them promptly, thereby reducing the risk of financial misstatements or contractual breaches.
Audit and Objections. R▇▇▇▇▇▇ ▇▇▇▇▇▇ will have the right to audit the books and records pertaining to production from the Properties and the calculation of the Royalty and to contest payments of Royalty for a period of twenty-four (24) months following receipt by Royalty Holder of each Royalty payment. Each Royalty payment will be deemed conclusively correct unless Royalty Holder objects to it in writing within twenty-four (24) months after receipt of such payment, setting forth in detail the basis for the Royalty Holder’s objection. If it is finally determined, through agreement by the Parties or following completion of the dispute as set out in Section 7(c) below, that Royalty Holder has been underpaid in any such payment, Obligor will promptly pay to Royalty Holder the underpaid amount plus interest in accordance with Section 5(b)(ii). In addition, if it is finally determined, through agreement by the Parties or following completion of the dispute as set out in Section 7(c) below, that Royalty payments for any calendar year are underpaid by more than five percent (5%), then O▇▇▇▇▇▇ will reimburse Royalty Holder for its reasonable costs incurred in auditing the books and records of Obligor.
Audit and Objections. Upon reasonable notice and at a reasonable time, Royalty Holder shall have the right to audit and examine ▇▇▇▇▇▇▇’s accounts and records relating to the calculation of the Royalty payments. If such audit determines that there has been a deficiency or an excess in the payment made to Royalty Holder, such deficiency or excess shall be resolved by adjusting the next monthly Royalty payment due Royalty Holder. Royalty Holder shall pay all costs of such audit unless a deficiency of five percent (5%) or more of the Royalty payment due for the calendar month in question is determined to exist. Royalty Holder may object in writing to any statement of Royalty payment amount within one (1) year of the receipt by Royalty Holder of the relevant statement in respect of such Royalty payment or completion of the audit for any such statement, as applicable. If it is determined by agreement of the Parties or otherwise that any Royalty payment has not been properly paid in full as provided herein, Obligor shall pay interest on the delinquent amount in accordance with Section 1.2.
Audit and Objections. Once annually and on reasonable notice and at a reasonable time, Grantor shall have the right to audit and examine GMRUS’s accounts and records relating to the calculation of the Royalty payments. If such audit determines that there has been a deficiency or an excess in the payment made to Grantor, such deficiency or excess shall be resolved by adjusting the next quarterly Royalty payment due Grantor. Grantor shall pay all costs of such audit unless a deficiency of five percent (5%) or more of the Royalty payment due for the calendar quarter in question is determined to exist. Grantor may object in writing to any statement of Royalty payment amount within ninety (90) days of the receipt by Grantor of the relevant statement in respect of such Royalty payment or completion of the audit for any such statement, as applicable.