Brexit, Brussels and Boris: Commercial Contract Considerations, Part 1
This series of blogs aims to assist you following the UK’s proposed exit from the European Union (EU) on 31 January 2020. The aim is to help you consider how you can prepare your business agreements and commercial contracts for the changes that will happen during the post-Brexit transition.
How can you prepare and what should you consider? Be smart in the face of Brexit uncertainty.
The Transition Period: A new phase for Brexit and for your business
As of 1 February 2020, it is anticipated that the UK will no longer be an EU member and by the year’s end, a new trade deal will have been negotiated and signed off by both sides, says Boris Johnson.
An 11-month transition period has been agreed in which time the UK will cease to be an EU member but will continue to follow its rules, regulations and will continue to contribute to its budget.
The transition is to give the UK and the EU time to negotiate their future relationship, including a new trade deal.
But what does this mean for your business and the contracts you currently have in place? How do you deal with the ongoing uncertainty and prepare for a deal to be finalised?
You still have time to act…
Until the outcome of the negotiations for the future relationship and new trade deal with the EU is known, as well as the mechanics to fully exiting, it is important to consider how to future-proof your business and its contracts in a climate of uncertainty.
It is worth all businesses considering a review of all existing contracts and future contract strategy to ensure that you are aware of the commercial impact of Brexit on the business. For future contracts it is worth considering measures to ensure that you can keep up with and respond to developments following the implementation of a deal and Brexit.
It is important to consider the full suite of contracts globally, not just arrangements with EU suppliers or customers, UK-to-UK contracts are just as important.
Our Commercial team can review documents to highlight amendments that may need to be made to ensure that your contracts commercially withstand the uncertainty around Brexit and the UK’s ongoing relationship with the EU.
In Part 2 of this series (which will follow soon) we will look at more specific issues, in relation to contracting and Brexit.
If you would like more information on any of the above, please contact us today.