Failure to Comply with Applicable Laws Clause Samples

The "Failure to Comply with Applicable Laws" clause establishes that parties to an agreement must adhere to all relevant laws and regulations in the course of fulfilling their contractual obligations. In practice, this means that each party is responsible for ensuring their actions, products, or services comply with local, state, and federal laws, such as labor regulations, environmental standards, or industry-specific rules. The core function of this clause is to allocate responsibility and risk, making it clear that legal non-compliance is a breach of contract and protecting parties from liability arising from the other party's unlawful conduct.