Common use of Stocktaking Clause in Contracts

Stocktaking. 6.1. Commencing on the day prior to the effective date, and continuing until completion thereof, representatives of the seller and the purchaser shall conduct a physical count and jointly prepare detailed stock sheets of: 6.1.1. the petrol, diesel and oil stock; 6.1.2. the shop stock; 6.1.3. the cash floats, as at the effective date. 6.2. In conducting the physical count of the stock as aforesaid and determining the value of the stock: 6.2.1. the representatives of the parties shall distinguish between current stock, obsolete stock and items of stock which are damaged or defective; 6.2.2. the petrol, diesel and oil stock shall be valued at the cost thereof; 6.2.3. the shop stock shall be valued at the lower of cost or net realisable value; 6.2.4. the cash floats shall be valued at their face value.