Licenses & Permits

Contract Type:
Generic Contract

Each party shall obtain and maintain all licenses, permits, and approvals required by any government or regulatory authority to perform its obligations under this Agreement.


Here is a plain English explanation of the Licenses & Permits clause:

- This clause requires both parties to get any licenses, permits, or approvals from government or regulators needed to carry out the contract.

- These could include things like business licenses, safety permits, or regulatory approvals specific to the goods/services.

- The clause makes each party solely responsible for ensuring they have proper authorization on their end.

- They must obtain licenses/permits prior to performing their contractual duties.

- The parties also must maintain valid licenses etc. throughout the contract term and keep them current.

- This protects both sides by ensuring the other has legal qualifications and compliance to hold up their end of the deal as required by authorities.

- It keeps liability on each party to get proper permissions from governments or oversight agencies relevant to their role.

History of the clause (for the geeks)

The licensing and permitting clause has its origins in English local government and regulatory practices that date back centuries.

As early as the medieval period, English monarchs and local authorities required licenses and guild memberships to conduct certain trades or businesses. This established precedents of governmental oversight over commercial activities.

By the 18th century, the onset of industrialization brought more health, safety and trade regulations that mandated permits from factories to pubs. The advent of modern professions like medicine also saw credentialing systems emerge. Contracts involving licensed participants thus needed to ensure proper authority.

In the 19th century, clauses allocating licensing duties became more common in English contracts, as parliament passed major regulatory laws around working conditions, food standards and more. Deals needed to expressly ensure compliance from each party.

By the 20th century, the vast expansion of government licenses, work permits, operational approvals etc. made such clauses a standard feature of English contracts. Post-war regulations in areas like transport, energy and the environment also drove inclusion of licensing duties.

Today, English contracts almost ubiquitously contain licensing clauses to protect parties and allocate compliance risks, reflecting centuries of increasing government oversight.

They evolved from traditional English trade guild controls to today's extensive regulatory state.