Governmental or Regulatory Action Clause Samples
The Governmental or Regulatory Action clause defines how a contract is affected if new laws, regulations, or government actions impact the parties' ability to perform their obligations. Typically, this clause outlines the steps parties must take if compliance with a government order or regulatory change makes performance illegal, impractical, or significantly more difficult, such as suspending obligations or renegotiating terms. Its core function is to allocate risk and provide a clear process for addressing unforeseen legal or regulatory changes that could disrupt the contract.
Governmental or Regulatory Action. Any governmental, regulatory, or self-regulatory authority shall have taken any action to remove, limit, restrict, suspend or terminate the rights, privileges, or operations of any Seller Party, which suspension has a Material Adverse Effect as determined by Purchaser in its sole and absolute discretion.
Governmental or Regulatory Action. (i) Any governmental, regulatory, or self-regulatory authority shall have taken any action to remove, limit, restrict, suspend or terminate the rights, privileges, or operations of any Seller Party or (ii) any Governmental Authority or agency or any person, agency or entity acting or purporting to act under Governmental Authority shall have taken any action to condemn, seize or appropriate, or to assume custody or control of, all or substantially all of the property of such Person, or shall have taken any action to displace the management of such Person or to curtail its authority in the conduct of the business of such Person, which, in either case, has a Material Adverse Effect as determined by Purchaser in its reasonable discretion.