Review of legality: Overview, definition, and example
What is a review of legality?
A review of legality refers to the process of evaluating the legality and compliance of actions, decisions, contracts, policies, or practices with applicable laws, regulations, and legal principles. This review aims to ensure that the actions or decisions being made by an organization, individual, or governmental body do not violate legal requirements or infringe on the rights of others. It involves checking whether certain actions or procedures are legally permissible under the jurisdiction’s laws and ensuring that proper legal procedures are followed.
In practice, a review of legality is often conducted by legal experts or compliance officers within an organization to assess the legality of business practices, contracts, proposed actions, or policies. This is especially crucial in highly regulated industries such as finance, healthcare, and data protection, where adherence to laws is mandatory.
Why is a review of legality important?
A review of legality is important because it helps ensure that an organization or individual remains compliant with applicable laws and regulations, thus minimizing the risk of legal challenges, penalties, and reputational damage. It provides a mechanism to proactively identify and address any potential legal issues before they escalate into more serious problems.
For businesses, conducting regular reviews of legality can help prevent costly litigation, fines, or regulatory scrutiny. For government bodies, ensuring that policies and actions are legal is critical to maintaining public trust and upholding the rule of law. For individuals, understanding the legality of their actions can help avoid legal consequences and ensure that their rights are protected.
Understanding the review of legality through an example
Imagine a software company, TechSoft, planning to launch a new mobile app that collects personal data from users. Before proceeding, the company conducts a review of legality to ensure that the app complies with data protection laws, such as the General Data Protection Regulation (GDPR) in the European Union.
The legal review team assesses the app’s data collection practices, privacy policy, and terms of service to ensure they comply with GDPR requirements, such as obtaining user consent for data collection, allowing users to exercise their rights (such as the right to access and delete data), and ensuring secure data storage and transfer.
If the review of legality reveals any potential violations—such as a failure to obtain proper user consent or insufficient data protection measures—the company can address these issues before the app is released, thus avoiding legal trouble and ensuring compliance with the law.
Example of a review of legality clause
Here’s how a review of legality clause might appear in a compliance policy or contract:
"The Company shall conduct a comprehensive review of legality regarding all new products, services, and business practices to ensure full compliance with applicable local, national, and international laws. The review will include an assessment of regulatory requirements, licensing obligations, and any potential legal risks. Any action or policy found to be in violation of applicable laws will be modified or abandoned accordingly before implementation."
Conclusion
A review of legality is a critical process for ensuring that actions, contracts, policies, and business practices comply with legal requirements and minimize the risk of legal issues. Whether conducted by in-house legal teams, external lawyers, or compliance officers, this review helps organizations and individuals stay within the boundaries of the law, avoid legal disputes, and maintain good standing with regulators and the public. Regular reviews of legality are essential for businesses operating in regulated industries, government agencies, and individuals involved in complex transactions or activities.
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.