Similar to regulatory disqualification, this clause specifically addresses loss of a professional license (like a doctor losing their medical license or a contractor losing their building license). The key difference is this focuses on licenses rather than broader regulatory approval. If someone's license is revoked, they literally cannot do the work legally—continuing would expose you to liability and potential criminal charges. This is especially important in regulated industries like healthcare, construction, and law.
Make sure the clause only triggers for *actual* revocation, not suspension or investigation—someone under investigation shouldn't trigger automatic termination. Negotiate a grace period (perhaps 60 days) to allow for appeals or reinstatement, since license suspensions are sometimes temporary. Also specify who bears the cost of finding a replacement during any notice period. ---
Frequently Asked Questions
What does this clause mean in simple terms?
Similar to regulatory disqualification, this clause specifically addresses loss of a professional license (like a doctor losing their medical license or a contractor losing their building license).
Why should I care about this clause?
The key difference is this focuses on licenses rather than broader regulatory approval.
What are my options?
If someone's license is revoked, they literally cannot do the work legally—continuing would expose you to liability and potential criminal charges.
How does this affect small businesses?
This is especially important in regulated industries like healthcare, construction, and law.