Overcharges or Undercharges Sample Clauses
The Overcharges or Undercharges clause defines how billing discrepancies are handled when a party is charged more or less than the correct amount. Typically, this clause allows either party to identify and notify the other of an overcharge or undercharge within a specified period, after which adjustments or refunds are made to correct the error. Its core practical function is to ensure fairness and accuracy in financial transactions by providing a clear process for correcting billing mistakes.
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Overcharges or Undercharges. If any audit confirms any overcharge, then the billing Party (or the Party that billed for services at more than the appropriate charge) shall promptly correct any billing error, including refunding any overpayment by the other Party in the form of a credit on the invoice for the first full billing cycle after the Parties have agreed upon the accuracy of the audit results. If any audit confirms any undercharge, then the billed Party (or the Party that was provided services at less than the appropriate charge) shall immediately compensate the billing Party for such undercharge. In each case of overcharge or undercharge, such rectifying credits and/or payments will be subject to interest at the lesser of one and one-half (1 ½%) percent per month or the highest rate of interest that may be charged under Applicable Law, compounded daily, for the number of days from the date on which such undercharge or overcharge originated until the date on which such credit is issued or payment is made and available, as the case may be.