Inspection Failure Clause Samples

The Inspection Failure clause defines the procedures and consequences when a property or item does not pass a required inspection. Typically, this clause outlines the steps that must be taken if defects or issues are discovered, such as allowing the seller to remedy the problems within a specified timeframe or permitting the buyer to withdraw from the agreement. Its core practical function is to protect the interests of the buyer by ensuring that the property or item meets agreed-upon standards before finalizing the transaction, thereby reducing the risk of accepting substandard goods or properties.
Inspection Failure. This Agreement may be terminated by Lessee as to one or more Hotels upon the failure within a sixty (60) day period of a SPAR inspection or a Franchisor’s quality inspection of a Hotel for any reason other than capital related condition items (by way of example, mildewed caulking or scuffed walls would be considered non capital related whereas worn carpet or sagging beds would be capital related), if the failures have not been remedied by Operator within sixty (60) days following the relevant inspection(s). Such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination. If Operator fails two consecutive Franchisor’s quality inspections (“Inspection”), for reasons other than capital related issues, Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination. Additionally, Lessee reserves the right, at its sole and absolute discretion, to request an extra Inspection on the Hotel after Operator has failed an Inspection, for reasons other than capital related items, and if Operator fails the extra Inspection this will qualify as two consecutive fails of Inspections and Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination. Lessee will be responsible for any additional fee required by Franchisor for said extra Inspection.
Inspection Failure. If Operator fails two consecutive Franchisor’s quality inspections (“Inspection”), for reasons other than capital related issues, Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than sixty (60) days prior to the effective date of termination. Additionally, Lessee reserves the right, at its sole and absolute discretion, to request an extra Inspection on the Hotel after Operator has failed an Inspection, for reasons other than capital related items, and if Operator fails the extra Inspection this will qualify as two consecutive fails of Inspections and Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination. Lessee will be responsible for any additional fee required by Franchisor for said extra Inspection.
Inspection Failure. This Agreement may be terminated by Lessee as to one or more Hotels upon the failure within a sixty (60) day period of both a SPAR inspection and a Franchisor’s quality inspection of a Hotel for any reason other than capital related condition items (by way of example, mildewed caulking or scuffed walls would be considered non capital related whereas worn carpet or sagging beds would be capital related), if the failures have not been remedied by Operator within ninety (90) days following the relevant inspection. Such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination.
Inspection Failure. Section 16.02.
Inspection Failure. E.4.1.3.1 Failure of the trailers as a result of any deficiency found during any required inspection will be cause for rejection of the trailers. The Government may refuse acceptance of all production trailers until action has been taken to eliminate the deficiency. The Government will consider any deficiencies found during the monthly 50 mile road test as described in Section E.11.2 as evidence that all trailers produced during the month are similarly deficient. E.4.1.3.2 The inspection and test requirements shall consist of the following: a. FPVI (Section E.5) b. PVT (Section E.8) c. Conformance Inspection (CI) (Section E.11.1)