Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

The importance of compliance contract terms

Tom Fox | June 24, 2018

Why should companies have compliance terms and conditions in third-party contracts? It is a specification in the Justice Department Evaluation of Corporate Compliance Programs, stating in Prong 10, What mechanisms have existed to ensure that the contract terms specifically described the services to be performed, that the payment terms are appropriate, that the described contractual work is performed, and that compensation is commensurate with the services rendered? 

Companies should make it a practice to incorporate compliance terms and conditions into all third-party contracts and have appropriate compliance terms and conditions in these contracts. These can be used as a starting point for negotiations. The advantages of such a template are several, including: (1) the contract language is tested against real events; (2) the contract language assists the company in managing its compliance risks; (3) the contract language fits into a series of...

Buy this article for $49, or subscribe to Compliance Week for a month at $149 and get unlimited article access for 30 days.