Common use of Guidance Note for clause 6 Clause in Contracts

Guidance Note for clause 6. 3: This clause incentivises the Licensee to keep accurate records by placing the financial cost of an audit on the Licensee if there is a 7% discrepancy or more. This threshold has been set following consultation, but could be adjusted if the parties agreed to a different %. There is also a right for the Licensor in clause 15.1 to terminate the Agreement if there is a finding by an auditor under clause 6.2 that the Licensee has fraudulently or deliberately underpaid Fees.