Will my contract survive Brexit
An important consideration for businesses is whether commercial contracts with an EU dimension will survive Brexit on 30 March 2019. The following are possible concerns:
An important consideration for businesses is whether commercial contracts with an EU dimension will survive Brexit on 30 March 2019. The following are possible concerns:
These and other issues may materially affect the commercial bargain underlying a contract. The contract may become significantly more onerous, or impossible, to perform.
Fortunately, the UK is not in the Eurozone, meaning there will be no change in the currency of the UK.
It is essential to review contracts in order to determine whether any relief is available in their express terms.
New contracts, currently being negotiated, may well need a 'Brexit clause' if any of the above possible concerns are at all relevant. If such a Brexit clause is desirable, it must clearly define a Brexit related trigger event and specify the precise consequences for the parties of that event occurring.
Businesses trading with the EU will gain advantage by addressing these issues early.
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