Obtaining of governmental approvals: Overview, definition, and example
What is obtaining of governmental approvals?
Obtaining governmental approvals refers to the process of seeking and securing formal permission or authorization from a relevant government authority before proceeding with a specific action, project, or transaction. These approvals are often required by law, regulation, or policy to ensure that the activity complies with legal standards, safety requirements, environmental regulations, zoning laws, or other government-imposed criteria.
For example, a company may need to obtain governmental approval before launching a new product, acquiring another business, constructing a new building, or releasing an environmentally sensitive chemical into the market.
Why is obtaining governmental approvals important?
Obtaining governmental approvals is important because it ensures that the actions taken by businesses, individuals, or organizations align with public policy, safety standards, and legal requirements. These approvals provide assurance that the proposed activities will not harm public interests, such as the environment, public health, or safety. Without the necessary governmental approvals, individuals or businesses may face legal challenges, fines, penalties, or delays.
For businesses, obtaining approvals can be a critical step in ensuring compliance and reducing risks associated with violations of regulations. For individuals, obtaining government approvals can help ensure that planned activities are legally permitted and will proceed smoothly without encountering regulatory obstacles.
Understanding obtaining governmental approvals through an example
Imagine a company in the construction industry plans to build a new office complex. Before starting construction, the company must obtain several governmental approvals, including zoning permits, environmental impact assessments, and building permits. These approvals ensure that the company’s project complies with local zoning laws, does not negatively affect the environment, and adheres to safety standards.
In another example, a pharmaceutical company must obtain governmental approval from regulatory bodies, such as the Food and Drug Administration (FDA) in the U.S., before releasing a new drug to the market. This approval ensures that the drug has been thoroughly tested and meets health and safety standards before it is made available to the public.
Example of obtaining governmental approvals clause
Here’s how an obtaining governmental approvals clause might appear in a contract or agreement:
"The Parties agree that all necessary governmental approvals, permits, and licenses required for the completion of the project shall be obtained by [Party Name] at its own expense. If any approval, permit, or license is not granted within [specified period], the Parties will renegotiate the terms of this Agreement or take appropriate actions to comply with the legal requirements."
Conclusion
Obtaining governmental approvals is a crucial step in ensuring compliance with laws and regulations and minimizing legal risks. By securing the necessary permissions and authorizations, individuals and businesses can proceed with their activities confidently, knowing that they have met all relevant legal standards.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.