The Contract should specify that the Contractor is expected to comply with all relevant law and should contain a mechanism for handling the effects of a change in law. Required drafting for change in law is as follows:
14.3 "Change in Law"
means the coming into effect after the date of this Contract of :
(a) Legislation, other than any Legislation which on the date of this Contract has been published:
(i) in a draft Bill as part of a Government Departmental Consultation Paper;
(ii) in a Bill;
(iii) in a draft statutory instrument; or
(iv) as a proposal in the Official Journal of the European Communities;194
(c) any applicable judgment of a relevant court of law which changes a binding precedent.196
" Legislation "
means any Act of Parliament or subordinate legislation within the meaning of Section 21 (1) of the Interpretation Act 1978, any Act of the Northern Ireland Parliament or Act of the Northern Ireland Assembly or other expression within the meaning of Section 1 of the Interpretation Act (Northern Ireland) 1954, any exercise of the Royal Prerogative, and any enforceable community right within the meaning of Section 2 of the European Communities Act 1972, in each case having application, whether or not expressed to have application, to Northern Ireland.197
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194 This presumes that such legislation is foreseeable in all projects. A more general foreseeability requirement is also included in the definition of "Qualifying Change in Law".
195 Such as the health sector guidance. Whether this is required will depend upon the sector concerned.
196 This drafting is intended to deal with changes in interpretation of law, which should not be defined more widely.
197 See Clause 1.8.2(a)(v) (Interpretation) - Legislation includes any re-enactment, amendment, consolidation or replacement of legislation.