No governmental review: Overview, definition, and example
What is no governmental review?
No governmental review refers to a provision in a contract or agreement that explicitly states that the terms, conditions, or actions outlined in the agreement are not subject to approval, oversight, or review by any government entity or regulatory authority. This provision ensures that the parties to the agreement can act independently of any external governmental scrutiny or intervention, unless otherwise required by law or regulation.
In some contexts, no governmental review may be used to avoid delays or interference from government authorities, particularly in agreements that involve private parties or business transactions that do not require formal approval or licensing by a government body.
Why is no governmental review important?
The no governmental review provision is important because it provides clarity and certainty for the parties involved in the contract. It helps ensure that the agreement is not delayed or subject to external review or approval by governmental agencies, which could potentially introduce uncertainty or disrupt the timeline. This provision is particularly relevant in business transactions or private agreements where government oversight is not necessary and could hinder efficiency.
For businesses, this provision can streamline the process of entering into agreements, reducing the risk of bureaucratic delays or challenges. For individuals, it provides assurance that the agreement will proceed without requiring the intervention or approval of government authorities, unless explicitly required by law.
Understanding no governmental review through an example
Imagine two companies enter into a merger agreement. The contract includes a no governmental review provision, meaning the terms of the merger will not be subject to government review or approval beyond the normal regulatory requirements (such as antitrust filings, if applicable). This allows the merger process to proceed without delays caused by waiting for government agencies to review or approve the transaction.
In another example, an artist enters into an exclusive licensing agreement with a company to produce and sell artwork. The agreement contains a no governmental review clause, ensuring that the company and the artist can move forward with the terms of the contract without the need for approval from any governmental or regulatory body, as the licensing is purely a private arrangement.
An example of a no governmental review clause
Here’s how a no governmental review clause might appear in a contract:
“The Parties agree that the terms of this Agreement are not subject to review, approval, or oversight by any governmental body, authority, or regulatory agency, except as may be required by applicable law. The Parties further agree that the execution and performance of this Agreement shall proceed without delay or modification due to governmental intervention, unless explicitly required by law.”
Conclusion
A no governmental review provision helps provide assurance and clarity by ensuring that the terms of an agreement will not be subject to governmental review or approval, unless required by law. This provision can help expedite business transactions and ensure that parties can execute and perform their obligations without the interference of external governmental authorities. It is particularly useful in private agreements or business dealings that do not involve governmental regulation or oversight.
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.