Compliance With Laws: What Does It Actually Mean?

Most commercial leases contain a "compliance with laws" clause under which the tenant covenants to comply with all laws which relate to the property. This is likely to extend not only to the tenant's occupation and use of the property itself, but also to the use of any services and equipment, to any works carried out to the property and to all materials kept at or disposed of from the property. It may prevent the tenant from doing certain things which wouldn't otherwise be prevented by the lease, or require the tenant to comply with particular requirements. It may also require the tenant to carry out – potentially very costly – works to the property. A compliance with laws clause is often very short and tenants don't always appreciate the additional obligations that may be imposed by its inclusion.