Substantial Underpayment Sample Clauses
The 'Substantial Underpayment' clause defines what constitutes a significant shortfall in payment, typically in the context of taxes, fees, or contractual obligations. This clause sets a threshold—often a percentage or specific amount—by which an underpayment is considered substantial, triggering certain consequences or penalties. For example, if a party pays less than a specified portion of what is owed, this clause may allow for additional interest, penalties, or corrective actions. Its core function is to clearly delineate when an underpayment is serious enough to warrant further action, thereby protecting parties from minor errors while ensuring accountability for significant payment deficiencies.
Substantial Underpayment. If any such audit reveals that the aggregate of royalties paid during any four consecutive calendar quarters was more than five percent (5%) less than the amount that should have been paid, then the reasonable expenses of the audit shall be borne by Licensee, which shall pay those expenses within thirty (30) days after demand therefore by Tufts accompanied by the accountants' statement therefor.