Compliance With Laws Clauses

Summary

These compliance with laws clauses are used in commercial agreements and require one or more parties to comply with applicable laws with respect to the performance of the agreement. National, state, or local laws and regulations may be covered by this clause. This template includes practical guidance and drafting notes. Contracting parties have a pre-existing obligation to comply with applicable law regardless of whether the underlying agreement contains a covenant addressing such compliance. Inclusion of a legal compliance clause, however, makes the obligation contractual, rendering a violation of applicable law a breach of contract, which can trigger the non-breaching party's right to suspend or terminate the agreement and pursue monetary and equitable damages, as applicable. For a full listing of related contract clauses, see General Commercial Contract Clause Resource Kit. For related information, see Commercial Contract Drafting and Review, Commercial Contract Drafting and Review Checklist, Compliance with Laws in Outsourcing, Compliance Program Creation, Creating a Compliance Program Checklist, Export Compliance Programs, and Complying with U.S. Export Control Regulations Checklist.