Brexit - there is a great deal to think about

Senior Partner, James Partridge from our corporate and commercial team speaks to the Times of Tunbridge Wells and describes the impact that the Leave vote will have on businesses and looks at five key areas including commercial contracts, dispute resolution, employment, commercial property and data protection.

James says, local businesses should plan ahead and review their commercial relationships during the next two years in order to minimise the impact. For example, any provisions in the contract such as ‘an exclusive right to operate in the EU’ will give rise to uncertainty.

Contracts may need to be terminated in case force majeure provisions – circumstances beyond the control of the signatories – are triggered when the UK leaves. Such terminations may have to rely on Brexit being classified as ‘material adverse change’.

Pricing arrangements may also need to be reevaluated. When negotiating contracts, businesses should consider expressly including or excluding the Brexit from any force majeure provision.

New contracts might also feature termination rights that can be activated when the UK leaves the EU, and provide alternative mechanisms.

The full article is available to read online, first published by Times of Tunbridge Wells on 29 June 2016: There is a great deal to think about