{"component": "clause", "props": {"groups": [{"samples": [{"hash": "kJA3BwuXwdo", "uri": "/contracts/kJA3BwuXwdo#prepaids", "label": "Acquisition and Consulting Agreement (PetroHunter Energy Corp)", "score": 18.0, "published": true}, {"hash": "gKncX5KpJwH", "uri": "/contracts/gKncX5KpJwH#prepaids", "label": "Acquisition and Consulting Agreement (PetroHunter Energy Corp)", "score": 18.0, "published": true}, {"hash": "9upd3ZRsGi0", "uri": "/contracts/9upd3ZRsGi0#prepaids", "label": "Acquisition and Consulting Agreement (PetroHunter Energy Corp)", "score": 18.0, "published": true}], "snippet": "Prepaid insurance premiums, utility charges, rentals and any other prepaids or accrued payables applicable to periods following the Effective Date, if any, attributable to the Properties shall be prorated as of the Effective Date, and amounts owing from such proration shall be settled in the Accounting.", "snippet_links": [{"key": "insurance-premiums", "type": "definition", "offset": [8, 26]}, {"key": "utility-charges", "type": "clause", "offset": [28, 43]}, {"key": "applicable-to", "type": "definition", "offset": [96, 109]}, {"key": "following-the-effective-date", "type": "clause", "offset": [118, 146]}, {"key": "the-properties", "type": "definition", "offset": [172, 186]}, {"key": "as-of-the-effective-date", "type": "clause", "offset": [205, 229]}, {"key": "amounts-owing", "type": "definition", "offset": [235, 248]}, {"key": "the-accounting", "type": "clause", "offset": [289, 303]}], "size": 5, "hash": "0497152047262cdaa1ed5904dea00fb7", "id": 4}, {"samples": [{"hash": "9QcTsVO1IVt", "uri": "/contracts/9QcTsVO1IVt#prepaids", "label": "Purchase and Sale Agreement", "score": 29.576171875, "published": true}, {"hash": "4AYh4LRXMf6", "uri": "/contracts/4AYh4LRXMf6#prepaids", "label": "Purchase and Sale Agreement", "score": 29.535112381, "published": true}, {"hash": "8x3Q2xhhxH1", "uri": "/contracts/8x3Q2xhhxH1#prepaids", "label": "Purchase and Sale Agreement", "score": 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goods and services, including those set forth on Schedule 2.1.5, whether or not pursuant to an Assumed Contract, where such goods or services have not been received by Seller as of the Closing (the \u201cPrepaids\u201d);", "snippet_links": [{"key": "all-of-seller", "type": "definition", "offset": [0, 13]}, {"key": "advance-payments", "type": "definition", "offset": [16, 32]}, {"key": "prepaid-rentals", "type": "clause", "offset": [47, 62]}, {"key": "prepaid-expenses-and-deposits", "type": "definition", "offset": [64, 93]}, {"key": "prepaid-deposits", "type": "clause", "offset": [109, 125]}, {"key": "the-inventory", "type": "clause", "offset": [130, 143]}, {"key": "related-to", "type": "definition", "offset": [145, 155]}, {"key": "the-acquired-assets", "type": "clause", "offset": [156, 175]}, {"key": "by-or-on-behalf-of", "type": "definition", "offset": [181, 199]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [207, 241]}, {"key": "goods-and-services", "type": "clause", "offset": [246, 264]}, {"key": "on-schedule", "type": "definition", "offset": [292, 303]}, {"key": "pursuant-to", "type": "definition", "offset": [326, 337]}, {"key": "assumed-contract", "type": "definition", "offset": [341, 357]}, {"key": "goods-or-services", "type": "clause", "offset": [370, 387]}, {"key": "received-by-seller", "type": "clause", "offset": [402, 420]}, {"key": "the-closing", "type": "clause", "offset": [427, 438]}], "size": 8, "hash": "237e850fe0c55925c772ae34d5fe34e9", "id": 2}, {"samples": [{"hash": "kbYV1saxhKI", "uri": "/contracts/kbYV1saxhKI#prepaids", "label": "Asset Purchase Agreement (Group 1 Automotive Inc)", "score": 18.0, "published": true}, {"hash": "fvmBF2qLFVX", "uri": "/contracts/fvmBF2qLFVX#prepaids", "label": "Asset Purchase Agreement (Group 1 Automotive Inc)", "score": 18.0, "published": true}, {"hash": "dEYwgL8kDr5", "uri": "/contracts/dEYwgL8kDr5#prepaids", "label": "Asset Purchase Agreement (Group 1 Automotive Inc)", "score": 18.0, "published": true}], "snippet": "Seller shall retain all prepaid accounts, provided however, that Seller and Purchaser may review the prepaid accounts and transfer any such prepaid accounts as they determine mutually beneficial, at the amount agreed to by them.", "snippet_links": [{"key": "seller-shall", "type": "clause", "offset": [0, 12]}, {"key": "prepaid-accounts", "type": "definition", "offset": [24, 40]}, {"key": "provided-however", "type": "clause", "offset": [42, 58]}, {"key": "seller-and-purchaser", "type": "definition", "offset": [65, 85]}, {"key": "agreed-to-by", "type": "definition", "offset": [210, 222]}], "size": 6, "hash": "757c4087bbd59eabad060147086bda8d", "id": 3}, {"samples": [{"hash": "izdEsZvR6be", "uri": "/contracts/izdEsZvR6be#prepaids", "label": "Asset Purchase Agreement (Paincare Holdings Inc)", "score": 21.0, "published": true}, {"hash": "4eg9oWmWVry", "uri": "/contracts/4eg9oWmWVry#prepaids", "label": "Asset Purchase Agreement (Paincare Holdings Inc)", "score": 21.0, "published": true}], "snippet": "All of the Company\u2019s prepaid expenses, prepaid insurance, deposits and other similar items (\u201cPrepaid Items\u201d);", "snippet_links": [{"key": "of-the-company", "type": "clause", "offset": [4, 18]}, {"key": "prepaid-expenses", "type": "clause", "offset": [21, 37]}, {"key": "prepaid-insurance", "type": "definition", "offset": [39, 56]}, {"key": "similar-items", "type": "definition", "offset": [77, 90]}, {"key": "prepaid-items", "type": "definition", "offset": [93, 106]}], "size": 4, "hash": "78afee87224949c492e29e282450510b", "id": 5}, {"samples": [{"hash": "1eACKltevKm", "uri": "/contracts/1eACKltevKm#prepaids", "label": "Purchase and Sale Agreement (DiamondRock Hospitality Co)", "score": 21.0, "published": true}], "snippet": "Seller shall receive a credit for prepaid expenses as of the Cut-Off Time, including prepaid expenses under contracts, advertising expenses, trade association dues and trade subscriptions, and fees for permits. Prepaid advertising expenses shall only include advertising which will be published, mailed or aired after the Cut-Off Time.", "snippet_links": [{"key": "seller-shall", "type": "clause", "offset": [0, 12]}, {"key": "a-credit", "type": "definition", "offset": [21, 29]}, {"key": "prepaid-expenses", "type": "clause", "offset": [34, 50]}, {"key": "off-time", "type": "clause", "offset": [65, 73]}, {"key": "association-dues", "type": "clause", "offset": [147, 163]}, {"key": "prepaid-advertising-expenses", "type": "clause", "offset": [211, 239]}], "size": 4, "hash": "f382a1cbb11e59d7567dd7c5eac899ca", "id": 6}, {"samples": [{"hash": "6ashqioJCHq", "uri": "/contracts/6ashqioJCHq#prepaids", "label": "Purchase Agreement (Hon Industries Inc)", "score": 18.0, "published": true}, {"hash": "5Oibe57rRjA", "uri": "/contracts/5Oibe57rRjA#prepaids", "label": "Purchase Agreement (Hon Industries Inc)", "score": 18.0, "published": true}], "snippet": "All prepaid expenses, advance payments, deposits, surety accounts and other similar assets, including, without limitation, prepaid deposits with landlords, suppliers and utilities;", "snippet_links": [{"key": "prepaid-expenses", "type": "clause", "offset": [4, 20]}, {"key": "advance-payments", "type": "definition", "offset": [22, 38]}, {"key": "without-limitation", "type": "clause", "offset": [103, 121]}, {"key": "prepaid-deposits", "type": "clause", "offset": [123, 139]}], "size": 3, "hash": "35cdbe3b9dc56af973f7e645961eff60", "id": 7}, {"samples": [{"hash": "lWksuDIMcdx", "uri": "/contracts/lWksuDIMcdx#prepaids", "label": "Stock Purchase Agreement", "score": 29.3408622742, "published": true}, {"hash": "bATXX7v97cL", "uri": "/contracts/bATXX7v97cL#prepaids", "label": "Stock Purchase Agreement (Eagle Family Foods Inc)", "score": 21.0, "published": true}], "snippet": "Prepaid amounts shall not be adjusted.", "snippet_links": [{"key": "prepaid-amounts", "type": "definition", "offset": [0, 15]}], "size": 2, "hash": 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"snippet": "The Prepaids listed in Schedule 3.o. represent all of the Prepaids and the Excluded Prepaids as of the Closing Date, and to the best of Angelo\u2019s knowledge IBA Green has been credited for the full amount of each Prepaid and IBA Green does not have to satisfy any further conditions to receive the full benefit of each Prepaid, with the exception of the Excluded Prepaids, which IBA Green will not receive any further benefit from the Excluded Prepaids after the Closing Date and for which IBA Green will not have to make any further payment for.", "snippet_links": [{"key": "excluded-prepaids", "type": "definition", "offset": [75, 92]}, {"key": "as-of-the-closing-date", "type": "clause", "offset": [93, 115]}, {"key": "to-receive", "type": "definition", "offset": [281, 291]}, {"key": "full-benefit", "type": "clause", "offset": [296, 308]}, {"key": "with-the-exception-of", "type": "clause", "offset": [326, 347]}, {"key": "after-the-closing-date", "type": "clause", "offset": 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must be included in a Prepaids clause to protect both parties?", "How can Prepaids be structured to maximize leverage during negotiations?", "What are the most common risks or pitfalls associated with poorly drafted Prepaids provisions?", "How do Prepaids clauses differ across jurisdictions or under different governing laws?", "What factors do courts consider when determining the enforceability of Prepaids clauses?"], "drafting_tip": "Specify the types and amounts of prepaids to prevent disputes; define timing and method of payment to ensure clarity; allocate responsibility for adjustments to avoid future confusion.", "explanation": "The \"Prepaids\" clause defines the treatment of payments made in advance for goods, services, or obligations under a contract. Typically, this clause outlines what constitutes a prepaid amount, how such payments are to be handled if the contract is terminated early, and whether any unused portion is refundable. For example, it may specify that advance payments for insurance premiums or service fees are non-refundable or must be prorated upon cancellation. The core function of this clause is to clarify the parties' rights and obligations regarding advance payments, thereby preventing disputes over refunds or the allocation of prepaid funds if the agreement ends prematurely."}, "json": true, "cursor": ""}}