The Impact of Brexit on Business Contracts
The upcoming two years of negotiation concerning Brexit should give businesses the opportunity to review their contracts and assess the potential impact on their company.
Points to consider for current and new contracts
There are various points which you should consider when reviewing existing contracts or when negotiating any new agreements:
- Trade tariffs: If trade tariffs are implemented this could significantly increase costs. You should conduct a review of your contracts in order to assess whether prices can be increased to take in to account the added cost of conducting business.
- Currency Fluctuations: Brexit has already had a large impact on the value of the British Pound which has meant many businesses have had to increase prices. You may want to consider implementing safeguards in any new contract to guard against the pound falling in value.
- Jurisdictional Scope: Many agreements may make reference to the EU int rems of the territorial scope of the contract. If this is the case for any of your contracts, you will need to consider the impact of this once the UK leaves the EU.
- Free Movement of Persons: If your business relies on individuals moving freely between EU member states, this may be a problem post Brexit. You should consider contingencies in relation to this to ensure business operations are not impacted.
- Termination: The impact of Brexit may make some agreements unworkable. It may be the case that the agreement can be terminated under the force majeur provisions or perhaps be terminated under the doctrine of frustration.
If you would like any of your agreements assessed to see what impact Brexit could have on your contract, our contract reviews start from £49.99: www.contractcanary.com/shop