Audit and Inspection Rights Clause

Summary

This audit and inspection rights clause can be used in commercial contracts to address the location, timing, cost allocation, and notice requirements, among other things. This template includes practical guidance and drafting notes. Audit and inspection rights provide a party with a method of determining whether or not the other party is adequately fulfilling its obligations under an agreement and assists in enforcing the terms of an agreement. This clause is jurisdiction and industry neutral and as such, counsel should consult applicable state and industry law when drafting such a clause on behalf of his or her client. For a full listing of related contract clauses, see General Commercial Contract Clause Resource Kit. For a stand-alone audit rights clauses, see Audit Clauses, and for a stand-alone inspection rights clause, see Inspection Rights Clause. For further information, see Payment, Collection, and Audit.