Prior review: Overview, definition, and example
What is prior review?
Prior review refers to the process of reviewing a document, agreement, or content before it is finalized or made public. This review is typically conducted by one or more parties to ensure that the content meets certain standards, complies with applicable laws or regulations, and addresses any concerns or necessary revisions before it is officially approved or released.
For example, in a business context, a company might require a legal department to conduct a prior review of a contract before it is signed to ensure that the terms are legally sound and compliant with relevant regulations.
Why is prior review important?
Prior review is important because it allows for the identification and correction of potential issues before they become formal or binding. It helps prevent errors, omissions, or misunderstandings that could lead to legal disputes, financial loss, or damage to a business’s reputation. By reviewing documents in advance, companies and individuals can ensure that everything is in order and that all parties are in agreement with the content.
In contexts such as publishing, marketing, or legal agreements, prior review ensures that materials meet quality standards, protect interests, and comply with regulations, ultimately preventing costly mistakes.
Understanding prior review through an example
Imagine a company is preparing a press release about a new product launch. Before the press release is sent to the media, the company’s legal team conducts a prior review to ensure that all statements are accurate, comply with advertising laws, and do not expose the company to liability. This process helps avoid misleading claims or legal challenges once the release is made public.
In another example, a contractor is about to sign an agreement with a client for a construction project. Before the contract is finalized, the contractor's legal team conducts a prior review to make sure all terms are clear, fair, and compliant with local building codes and regulations.
An example of a prior review clause
Here’s how a clause related to prior review might appear in a contract:
“The Company shall have the right to conduct a prior review of any marketing materials, advertisements, or public statements made by the Partner to ensure compliance with applicable laws and regulations before such materials are published or released.”
Conclusion
Prior review is an essential step in many processes, from contract negotiations to content creation. It provides a safeguard against errors, misunderstandings, and legal risks by ensuring that everything is thoroughly checked before it becomes final. By incorporating prior review into business and legal practices, companies can ensure compliance, quality, and risk management while avoiding unnecessary issues down the line.
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.