Although commercial parties enter contracts with trust and good faith, you may be concerned about ensuring the other party complies with its obligations. In certain circumstances, audit rights can offer you significant protection. This article will explore how audit rights can protect your business from risk. <\/p>\n\n\n\n
A contract is an essential legal document. In a business context, it is a legally binding agreement between two parties that records the terms of their commercial deal or project. <\/p>\n\n\n\n
A contract is a vital tool to prevent risk<\/a> and to help protect you if things go wrong. As part of your contract, your business can consider including audit rights clauses to protect itself from certain risks. <\/p>\n\n\n\n Audit rights allow a party to check the other party’s conduct under a commercial contract. For example, as a customer, an audit right could give you access to a supplier\u2019s books, records, premises or other information. <\/p>\n\n\n\n If you wish to have audit rights, you must include provisions in your contract allowing you to do so. <\/p>\n\n\n\n Examples of when you can include contractual audit rights as a customer include: <\/p>\n\n\n\nWhat Are Audit Rights? <\/h2>\n\n\n\n
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