21st November 2018
On the whole, businesses have welcomed the concept of a transitional period which would maintain the status quo until 31 December 2020, after which time the future relationship – or the trade deal - with the EU will come into force.
While we await details on the terms of our future trade deal with the EU, and what form the transition period will take, we do know that Brexit is coming. As such, businesses would be wise to plan for all eventualities – including a consideration of its business contracts. Here we examine how Brexit could affect your contracts and what you should do in the lead up to Brexit.
Review all long-term commercial contracts that might still be in existence after 29 March 2019. Assess your contractual links to the EU, identify any issues that could arise and take appropriate action. There is no one-size-fits-all approach, but the following key issues should be considered:
In light of your analysis of these key issues, consider whether any of your existing contracts could or should be renegotiated or terminated to protect the business.
Brexit risks should be covered in each new contract you enter into. Consider how the contract might be affected by the UK's departure from the EU, and make any necessary provisions. This might include:
What should you do now?