Accuracy of exhibits: Overview, definition, and example
What is accuracy of exhibits?
The term “accuracy of exhibits” refers to a contract clause ensuring that all attached exhibits, schedules, or supporting documents are complete, true, and correct. Exhibits often include important details such as pricing, technical specifications, or additional terms. If an exhibit contains errors or misleading information, it can create legal and financial risks for the parties involved.
Why is accuracy of exhibits important?
Ensuring the accuracy of exhibits is crucial for avoiding disputes and misunderstandings. Many contracts rely on exhibits to outline key details, and any discrepancies can lead to financial losses, legal liability, or contract breaches.
For example, if an exhibit lists incorrect product specifications, a buyer may receive goods that don’t meet their expectations. A well-drafted clause ensures that each party confirms the accuracy of these documents, making the contract more reliable and enforceable.
Understanding accuracy of exhibits through an example
Imagine a company signs a supply contract with a manufacturer. The contract includes an exhibit listing the materials and specifications for the products. Later, the buyer realizes the exhibit contains outdated product details that don’t match the agreed specifications.
If the contract includes a clause requiring the seller to confirm the accuracy of exhibits, the buyer has a clear basis for demanding corrections or even terminating the agreement. Without this clause, the parties may argue over responsibility, leading to delays and potential losses.
Example of an accuracy of exhibits clause
Here’s an example of what an accuracy of exhibits clause may look like in a contract:
“Each Party represents and warrants that all exhibits, schedules, and attachments to this Agreement are accurate, complete, and correct as of the Effective Date. Any material inaccuracies or omissions discovered after execution shall be promptly corrected by the responsible Party at its sole cost. Failure to correct inaccuracies may be deemed a material breach of this Agreement.”
Conclusion
An accuracy of exhibits clause helps ensure that all supporting documents in a contract are correct and reliable. It protects businesses from errors that could lead to financial losses or contract disputes.
Before signing any contract, review all exhibits carefully and confirm their accuracy. If your agreement includes exhibits, an accuracy clause ensures accountability and prevents costly mistakes down the line.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.