Common use of Guidance Notes Clause in Contracts

Guidance Notes. A Service Provider could conceivably discharge its primary contractual obligations by breaching the law e.g. by paying its staff less than the statutory minimum wage or by entering into anti-competitive arrangements. There is a general public interest in upholding and complying with the law and as such this clause makes it a breach of contract for the Service Provider to breach any applicable law or regulatory requirement when performing its obligations under the Contract. If a Service Provider is involved in a public controversy it may be that the Purchaser can rely on this clause to hold the Service Provider to be in breach of contract. But please note that this clause only relates to the Service Provider’s activities under the Contract. In particular, consider whether special provision needs to be made regarding compliance with tax obligations and tax avoidance. This could be included as an obligation on the Service Provider or as a warranty by the Service Provider.