Record keeping: Overview, definition and example
What is record keeping?
Record keeping means keeping track of important business documents and information. It includes storing contracts, invoices, emails, and other records that show what was agreed upon and done. In the context of contracts, record keeping helps make sure there’s a clear, organized trail of all the important details and actions between the parties involved.
Why is record keeping important?
Record keeping is important because it ensures that everything you’ve agreed to is documented. This makes it easier to review past decisions, comply with laws, and resolve any issues that may arise. Good record keeping helps protect your business by providing proof of what was agreed to and done. It also helps you stay organized and avoid confusion down the line.
Understanding record keeping through an example
For example, let’s say you sign a contract with a supplier to deliver goods every month. Record keeping would involve keeping copies of the signed contract, delivery receipts, and payment records. If there’s ever a dispute, like a late delivery, having these records lets you quickly check what was agreed upon and how things went.
An example of a record-keeping clause
Here’s an example of how a record-keeping clause might appear in a contract:
“Both parties agree to keep accurate and up-to-date records of all transactions under this Agreement for at least five years. These records must be available for review by the other party upon request.”
Conclusion
Record keeping is a simple but crucial part of business agreements. It ensures everything is tracked and easy to access if needed. By keeping accurate records, you protect your business and make sure everyone is on the same page when it comes to past agreements and actions.
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.