Common use of Consequences of Inspection or Audit Clause in Contracts

Consequences of Inspection or Audit. (a) Unless otherwise agreed, where a Party requires the conduct of an inspection or an audit under Clauses 12(f) or 13.2(a)(ii) of this Agreement, that Party will be liable to the other Party in respect of loss or damage (including damages for Consequential Loss) arising from the conduct of the inspection or audit if, and only if, no reasonable person in the position of the Party who required the conduct of the inspection or audit could have formed the view that the stated grounds for such inspection or audit existed, provided that the other Party must use all reasonable endeavours to mitigate the loss or damage arising from the conduct of the inspection or audit. The Party who required the conduct of the inspection or audit shall bear the burden of establishing that a reasonable person in its position could have formed that view. (b) Notwithstanding clause 13.8(a), Aurizon Network will not be liable to the Operator for any loss or damage (including damages for Consequential Loss) arising from the Operator's liability to the End User in connection with the inspection or audit.