Sales Statement Books and Records Audits Sample Clauses
The 'Sales Statement; Books and Records; Audits' clause establishes the obligation for a party, typically the seller or licensee, to maintain accurate records of sales and related transactions. It generally requires the party to provide periodic sales statements and grants the other party, such as the buyer or licensor, the right to inspect or audit these records to verify the accuracy of reported sales and payments. For example, in a licensing agreement, the licensee must keep detailed records of product sales and allow the licensor to audit these records to ensure correct royalty payments. This clause's core function is to promote transparency and accountability, helping to prevent disputes over financial reporting and ensuring that all parties receive the payments to which they are entitled.
Sales Statement Books and Records Audits. A. Sales Statement. Sublicensee shall deliver to Licensor at the time each Sales Royalty is to be accounted for and paid, a statement indicating by month: (i) the number, description and invoice price of all Articles bearing the Sublicensed Marks actually sold and distributed during the period covered by such Sales Royalty payment; (ii) the amount of returns, discounts and credits from gross sales which may be deducted therefrom pursuant to this Agreement and any and all renewals hereof; and (iii) a computation of the amount of Sales Royalty for the applicable Annual Period. Such statement shall be furnished to Licensor whether or not any Articles have been actually sold and distributed during the Annual Period as to which such statement applies.
Sales Statement Books and Records Audits