Account Budget Compliance Agreement
Account Budget Compliance Agreement
This Budget Compliance Agreement (hereinafter referred to as the "Agreement") is executed and comes into effect as of the [Day] day of [Month], [Year], by and between [Your Company Name], with its principal place of business located at [Your Company Address] (hereinafter referred to as the "Budget Compliance Entity"), and [Client Name], with its principal place of business located at [Client Address] (hereinafter referred to as the "Client").
RECITALS
WHEREAS, the Budget Compliance Entity is committed to maintaining the highest standards of budgetary discipline and financial integrity in its business operations; and
WHEREAS, the Client is engaged in activities that require adherence to strict budgetary guidelines and seeks to ensure compliance with such financial standards;
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
I. Purpose of the Agreement
This Agreement aims to establish the framework within which [Your Company Name] (hereinafter referred to as "the Company") and [Client Name] (hereinafter referred to as "the Client") will cooperate in the allocation, management, and oversight of funds within a designated joint account budget. The intention is to ensure that the use of these funds is in strict accordance with the agreed-upon budgetary constraints and financial objectives set forth by both parties.
II. Obligations and Responsibilities
The Company shall be responsible for the day-to-day management of the joint account, including but not limited to, monitoring expenditures, ensuring compliance with the budgetary guidelines, and providing regular financial reports to the Client. The Client, on their part, agrees to adhere to the established budget parameters and shall not make or authorize any expenditure exceeding these limits without the express written consent of the Company. Any modifications to the agreed budget must be mutually consented to in writing by both parties and annexed to this Agreement as amendments.
III. Settlement of Account
The settlement of accounts shall occur at the closure of each defined fiscal period as agreed by both parties. Any funds that remain unexpended by the end of this period may be rolled over into the next fiscal period, subject to a mutual agreement between the Company and the Client, or shall be managed in accordance with the terms agreed upon at the outset of this Agreement.
IV. Termination
This Agreement may be terminated by either party upon providing a written notice of intent to terminate to the other party no less than thirty (30) days prior to the intended date of termination. Such notice shall be delivered through certified mail, return receipt requested, or via another method agreed upon by both parties.
V. Effect of Termination
Upon the effective date of termination, the Company will prepare and deliver to the Client a final statement of the account. Any funds remaining in the account after settling any outstanding obligations shall be returned to the Client within a reasonable period, not to exceed sixty (60) days from the date of termination.
VI. Dispute Resolution
In the event of any dispute arising from or related to this Agreement, the parties shall first seek resolution through good faith negotiations and mediation before resorting to arbitration. If mediation fails to resolve the dispute, the matter shall be settled through binding arbitration conducted in accordance with the rules of the American Arbitration Association or another arbitration body mutually agreed upon by the parties. The decision of the arbitrator(s) shall be final and binding on both parties.
VII. Confidentiality
Both the Company and the Client commit to maintaining the confidentiality of all financial and operational information related to the joint account. Neither party shall disclose any such confidential information to any third party without the express written consent of the other party, except as may be required by law or in the performance of this Agreement.
VIII. Governing Law
This Agreement and any disputes arising from it shall be governed by and construed in accordance with the laws of [Specify State or Jurisdiction], without giving effect to any choice or conflict of law provisions.
IN WITNESS WHEREOF, the undersigned have executed this Account Budget Compliance Agreement as of the date first written above.
[Your Company Name]
By:
Name:
Title:
Date:
[Your Client Name]
By:
Name:
Title:
Date:
