Compliance with Law Clause

A “compliance with laws” provision requires that both parties to a contract must comply with the applicable laws with respect to some core aspect of the contract. These types of provisions are common in commercial leases.

This Standard Clause stipulates that the parties to the underlying agreement will comply with all applicable federal, state and local laws, and regulations. This Standard Clause has integrated notes with important explanations and drafting tips.

A typical clause will read as follows:

1. Compliance with Laws. Each party will
   1. comply with all Laws relating to [SUBJECT MATTER OF AGREEMENT],
   2. keep records evidencing its compliance,
   3. on the other party’s reasonable request, provide these records of compliance to the other party, and
   4. notify the other party if it becomes aware of any non-compliance in connection with this section.

 

In another great video from ae ProNet, Bruce Furukawa, Esq. discusses how to deal with a compliance with law provision in the contract. He provides wording that should be included within the contract to clarify this provision and protect the work of the design professional. Good compliance with the law clauses should include wording that it is applicable, non-conflicting and consistent with the standard of care.

Please click HERE to view Bruce’s video