Log in Sign up for free
Contract clause library

Legal or regulatory changes clause: Copy, customize, and use instantly

Introduction

A legal or regulatory changes clause outlines the actions that must be taken if changes to laws or regulations affect the contract. This clause is important for ensuring both parties remain compliant with any new or revised legal or regulatory requirements that may arise during the term of the contract.

Below are templates for legal or regulatory changes clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

This version includes basic legal or regulatory changes provisions.

If any legal or regulatory changes occur during the term of this Agreement that affect the performance of either party's obligations, the affected party will promptly notify the other party in writing. Both parties will work together in good faith to amend this Agreement as necessary to comply with the new laws or regulations.

This version applies to automatic adjustments.

In the event that any legal or regulatory changes impact the obligations or deliverables under this Agreement, the terms of this Agreement will be automatically adjusted to comply with the changes, without the need for further agreement from both parties. Any necessary amendments will be documented and included as an addendum to this Agreement.

This version applies to renegotiation.

If any legal or regulatory changes make it impossible or impractical for either party to meet its obligations under this Agreement, both parties agree to renegotiate the terms of this Agreement in good faith to accommodate the changes and ensure continued compliance.

This version applies to cost impact.

If any legal or regulatory changes result in additional costs or expenditures, the affected party will notify the other party in writing. The parties will mutually agree on an adjustment to the contract price or payment terms to account for these increased costs, which will be incorporated into the revised contract.

This version applies to compliance audits.

If any legal or regulatory changes require an audit or review of the parties' compliance with applicable laws, both parties agree to cooperate fully and provide necessary documentation to facilitate the audit. The costs of the audit will be shared equally unless otherwise agreed in writing.

This version applies to notification of changes.

In the event of any legal or regulatory changes that affect this Agreement, the affected party must notify the other party in writing within [X] days of becoming aware of the change. Both parties will then collaborate to ensure the Agreement is updated as necessary.

This version applies to immediate compliance.

If any legal or regulatory changes occur that require immediate compliance, the affected party will take all necessary actions to ensure compliance within [X] days of the change. Both parties agree to work together to ensure the Agreement is updated in line with the changes, and any costs related to immediate compliance will be borne by the affected party.

This version applies to suspension of obligations.

In the event of legal or regulatory changes that temporarily hinder the performance of obligations under this Agreement, the affected party may suspend its obligations for the duration of the change. Both parties will discuss and agree on a revised timeline for completion upon resolution of the legal or regulatory change.

This version applies to the application of new laws.

If any new law or regulation comes into effect that directly impacts the terms or performance of this Agreement, the parties agree to promptly revise the Agreement to ensure it complies with the new law. The revisions will take effect immediately upon both parties' written agreement.

This version applies to timeline adjustments.

If legal or regulatory changes cause delays in fulfilling the obligations of this Agreement, the parties agree to extend the deadlines for affected milestones. The revised timeline will be determined collaboratively by both parties, and the changes will be documented and incorporated into the Agreement.

This version applies to termination due to changes.

If legal or regulatory changes render the performance of this Agreement illegal, impossible, or substantially more burdensome, either party may terminate this Agreement upon providing [X] days' notice. The terminating party will not be liable for penalties or damages due to termination under this clause.

This version applies to dispute resolution.

If legal or regulatory changes cause a dispute regarding the interpretation of this Agreement, the parties agree to resolve the dispute through mediation or arbitration, as outlined in the Dispute Resolution section of this Agreement, before pursuing other legal remedies.

This version applies to mutual agreement.

If legal or regulatory changes require amendments to this Agreement, both parties agree to meet promptly to discuss and mutually agree upon the necessary revisions. All amendments will be documented in writing and incorporated as addendums to this Agreement.

This version applies to retroactive adjustments.

If legal or regulatory changes affect the terms of this Agreement retroactively, both parties will negotiate any necessary adjustments to account for the effects of the changes on past performance. Any such adjustments will be applied retroactively and documented in writing.

This version applies to compensation adjustments.

If a change in laws or regulations increases or decreases the costs associated with the performance of this Agreement, the parties agree to adjust the compensation due to reflect the financial impact of the change. These adjustments will be agreed upon in writing and will be based on a fair assessment of the cost impact.

This version applies to legal assistance.

In the event of legal or regulatory changes affecting this Agreement, both parties agree to provide each other with necessary legal assistance and documentation to ensure compliance. Any costs for such legal services will be borne by the party requesting the assistance, unless otherwise agreed.

This version applies to maintaining contract validity.

If any changes in law or regulation affect the validity of this Agreement, the parties agree to take all necessary steps to modify the Agreement in order to comply with the new legal requirements, ensuring the Agreement remains valid and enforceable.

This version applies to performance obligation amendments.

Should any legal or regulatory changes require a modification to the performance obligations of either party under this Agreement, the affected party will notify the other party. Both parties will then discuss the necessary changes and amend the Agreement to reflect the new legal requirements.

This version applies to notification within a period.

The party affected by any legal or regulatory change must notify the other party in writing within [X] days of becoming aware of the change. Both parties will then collaborate to amend the Agreement as required by the new legal or regulatory framework.

This version applies to shared compliance costs.

If legal or regulatory changes impose additional compliance costs on either party, both parties agree to share these costs equally, unless the change only affects one party. The allocation of such costs will be agreed upon in writing and incorporated into the Agreement.

This version applies to government intervention.

In the event that a government agency intervenes in the project due to legal or regulatory changes, the affected party will promptly inform the other party. Both parties will collaborate to adjust the Agreement to ensure compliance with the government’s directive or requirements.

This version applies to work continuation.

If legal or regulatory changes occur during the course of the project, both parties agree to continue performing their obligations as much as possible under the current terms. Any required changes will be made as soon as possible, but the Agreement will remain in effect during the adjustment period.

This version applies to transitional provisions.

If legal or regulatory changes are enacted during the term of this Agreement, the parties agree to negotiate transitional provisions to ensure the smooth continuation of the project. These provisions will be implemented as necessary to bridge any gaps caused by the new regulations or laws.

This version applies to benchmarking compliance.

Both parties agree to periodically review their compliance with applicable legal and regulatory requirements. If any change affects the Agreement, the parties will benchmark the new requirements and amend the Agreement to reflect compliance with those changes.

This version applies to international law compliance.

If any international legal or regulatory changes affect the Agreement, both parties agree to review the implications and amend the Agreement to comply with international standards or regulations. The affected party will bear any additional compliance costs related to such changes.

This version applies to subcontractors.

In the event of any legal or regulatory changes affecting this Agreement, [Party B] will ensure that its subcontractors comply with the updated requirements. Both parties will collaborate to ensure that any changes to the subcontractor's obligations are documented and reflected in their respective contracts.

This version applies to indemnity for non-compliance.

If any legal or regulatory changes lead to non-compliance by either party, the non-compliant party will indemnify the other party against any damages, fines, or penalties incurred as a result of such non-compliance. This indemnity will be included in the revised Agreement if applicable.

This version applies to pricing adjustments.

If any legal or regulatory changes affect the costs of fulfilling this Agreement, the parties agree to adjust the contract price accordingly. The adjustment will be based on the actual increase in costs caused by the regulatory changes, and both parties will agree on the revised price in writing.

This version applies to suspension of performance.

If legal or regulatory changes render the performance of any obligation under this Agreement temporarily impossible or illegal, the affected party may suspend performance of such obligations without liability, provided that the suspension is limited to the duration of the legal or regulatory change.

This version applies to reevaluation of deadlines.

In the event of legal or regulatory changes that impact the completion of any milestone, the parties agree to reevaluate the deadlines for the affected milestones. New deadlines will be mutually agreed upon, and any necessary adjustments will be made to the payment terms to reflect the extended timeline.

This version applies to third-party consultation.

If legal or regulatory changes require a change to the Agreement, both parties agree to seek consultation from a third-party expert to ensure compliance with the new regulations. The cost of the consultation will be shared equally by both parties, unless otherwise agreed in writing.

This version applies to contract termination.

If legal or regulatory changes make it impossible for either party to perform its obligations under this Agreement, the affected party may terminate the Agreement upon providing [X] days' notice to the other party. The termination will be without liability for either party, except for any outstanding obligations prior to termination.

This version applies to dispute resolution.

In the event of a dispute arising from legal or regulatory changes, both parties agree to enter into dispute resolution procedures as outlined in the Dispute Resolution section of this Agreement. The parties will first attempt mediation, followed by arbitration if necessary, to resolve any issues.

This version applies to external factors.

If legal or regulatory changes are caused by external factors such as changes in government policy or international law, [Party B] will be allowed an extension of [X] days to meet any deadlines affected by the changes. Both parties will mutually agree to the revised timeline, ensuring compliance with the new regulations.

This version applies to compliance monitoring.

Both parties agree to monitor the impact of legal and regulatory changes on the project throughout the term of this Agreement. If any changes occur, the parties will review the compliance requirements and make any necessary amendments to the Agreement to ensure continued compliance.

This version applies to additional costs.

If new laws or regulations increase the cost of performing the obligations outlined in this Agreement, [Party B] will notify [Party A] and provide a breakdown of the increased costs. Both parties will negotiate a fair adjustment to the contract price to reflect these additional costs.

This version applies to contract modifications.

In the event of legal or regulatory changes, both parties agree that modifications to this Agreement may be required to ensure compliance with the new laws. These modifications will be discussed and agreed upon in writing, and the Agreement will be amended accordingly.

This version applies to automatic updates.

If any legal or regulatory changes affect the compliance obligations under this Agreement, the parties agree that such obligations will be automatically updated to meet the new standards. Any necessary revisions will be incorporated into the contract without the need for further approval, provided both parties are notified of the changes.

This version applies to extended compliance deadlines.

If legal or regulatory changes affect the ability of [Party B] to meet the deadlines for deliverables, both parties agree to extend the compliance deadlines by a reasonable period. The extended timeline will be mutually agreed upon and documented in writing.

This version applies to future changes.

Both parties agree that this Agreement will be automatically aligned with any future legal or regulatory changes that affect the performance of obligations. These changes will be communicated promptly, and the parties will amend the Agreement as necessary to ensure compliance with the new laws or regulations.

This version applies to notification and collaboration.

If either party becomes aware of any legal or regulatory changes that affect the terms of this Agreement, they will notify the other party within [X] days. Both parties will then collaborate to determine how best to modify the Agreement to ensure continued compliance with the applicable laws.

This version applies to adjustments in scope.

If legal or regulatory changes require an adjustment in the scope of work outlined in this Agreement, the parties will discuss and agree on the necessary modifications. The scope of work will be revised to comply with new regulations, and any associated costs or timelines will be adjusted accordingly.

This version applies to impact assessments.

Both parties agree to assess the impact of any legal or regulatory changes on the performance of the obligations under this Agreement. If the changes significantly impact performance, the parties will negotiate the necessary adjustments to the terms, including deadlines, deliverables, and pricing.

This version applies to reassessing obligations.

In the event of legal or regulatory changes, both parties agree to reassess their obligations under this Agreement. The parties will work together to evaluate the impact of the changes and make any necessary modifications to the terms of the contract to ensure continued compliance.

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.

Last updated