GOVERNMENTAL DECREE Clause Samples
A Governmental Decree clause establishes how the contract will be affected if new laws, regulations, or official government orders impact the parties’ obligations. Typically, this clause outlines the steps parties must take if a governmental action makes performance illegal, impractical, or significantly more difficult, such as suspending certain activities or renegotiating terms. Its core function is to allocate risk and provide a clear process for adapting the contract in response to changes in the legal or regulatory environment, thereby protecting both parties from unforeseen governmental interventions.
GOVERNMENTAL DECREE. If because of legislation, governmental decree or order, any increase or benefit is in any way blocked, frustrated, impeded or diminished, the Union may upon ten (10) days' notice require negotiation with the RAB to take such measures and reach such revisions in the Agreement as may legally provide substitute benefits and improvements for the employees at no greater cost to the Employer. In the event that any provision of this Agreement requires approval of any governmental agency, the Employer shall cooperate with the Union with respect thereto.
GOVERNMENTAL DECREE. There is presently in effect an agreement between the Union and the RAB covering apartment buildings in the City of New York which provides that if because of legislation, government decree or order, any increase or benefit is in any way blocked, frustrated, impeded or diminished, the Union may upon ten (10) days’ notice require negotiation with the RAB to take such measures and reach such revisions in the contract as may legally provide substitute benefits and improvements for the employees at no greater cost to the Employer. The parties hereto agree that any terms or provisions which may be negotiated between the Union and the RAB as a result of any such re-negotiation shall be fully binding upon the parties hereto upon the same terms, and effective date(s) as between the Union and the RAB. In the event that any provision of this contract requires approval of any government agency, the Employer shall cooperate with the Union with respect thereto.