What Does “Anti-Corruption” Mean in a Contract?
Provisions requiring compliance with anti-bribery laws and prohibiting corrupt payments to government officials or others.
Detailed Explanation
Anti-corruption clauses address laws like the U.S. Foreign Corrupt Practices Act (FCPA) and UK Bribery Act. They prohibit bribes, kickbacks, and improper payments to government officials or private parties.
These provisions often include representations about past compliance, covenants about future conduct, audit rights, and indemnification. Violations can result in severe criminal and civil penalties.
Example in a Contract
“Neither party shall make, offer, or authorize any payment or gift to any government official or employee to influence official action. Each party shall maintain accurate books and records and permit audits to verify compliance.”
Why It Matters
Corruption liability can extend to companies through their agents and partners. Anti-corruption provisions protect you from liability for the other party's violations. If you're working in high-risk regions, take these provisions seriously.
Related Terms
Have a Clause with “Anti-Corruption”?
Paste your contract clause below for instant AI analysis. Get risk assessment, plain English explanation, and suggested improvements.