It has become apparent that it could take years to conclude the Brexit process and finalise the terms of departure from the rest of the EU.
Although Brexit is unlikely to have a significant impact on existing contracts which are due to end within the next couple of years, contracts that extend beyond the Brexit negotiation period may well be affected, depending on their wording.
It would be advisable to perform an audit to determine the effect Brexit will have on your existing contracts and also to consider whether any Brexit specific clauses should be added to new contracts.
The extent to which Brexit will impact on a specific contract will obviously depend on its wording. Relevant provisions include:
For new contracts that are likely to extend beyond the Brexit negotiation period, it would be advisable to consider adding the following Brexit specific clauses:
Businesses will obviously want to maintain a watching brief on the negotiations to assess whether any further changes could be required to their contracts in the longer term.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at August 2016. Specific advice should be sought for specific cases. For more information see our terms & conditions.