Steps you should take to make sure your commercial contracts are up to date and Brexit-proof, regardless of the outcome in 2019.
Your commercial contracts are an essential element in addressing the risks faced by your business. With Brexit fast approaching and New Year around the corner – why not add this to your list of resolutions?
Take an audit of your commercial contracts both inbound and outbound. Check the duration and see which ones cannot be terminated before the end of the Brexit transitional period. These may need closer attention if they cannot be renegotiated. For the others you can always terminate if it is not possible to agree suitable terms. Note this is not only an exercise for EU cross border contracts but for all contracts that relate to the EU.
Key areas to consider are:
Force Majeure – does your contract address the consequences of delays in delivery?
Territory – what territorial rights have been granted and how will the UK’s departure effect those rights?
Price Adjustment – can you pass on or will you be subject to any price increases?
Delivery Terms – will your current delivery terms result in unexpected costs (e.g. CIF or DDP)?
Dispute Resolution – there should be no fundamental change to the law governing choice of law and jurisdiction
Compliance with applicable law – will you still agree to comply with the laws of the EU that relate to your goods and services?
Data flows and personal data – continued compliance with GDPR is almost certain and this is as good a time as any to make sure you have the appropriate agreements in place if you haven’t done so already
We recommend creating a checklist so that you have a clear picture of the risks you face and can decide what, if anything, you would like to do to address them.
For more information on your commercial contracts and Brexit click here for Robert’s recent round table discussion with lawyers from many EU countries.
Legal support and guidance
Robert Cain and the commercial team have extensive experience in all forms of commercial contracts across many industry sectors both domestic and international. Should you have any queries about your commercial contracts, please do not hesitate to contact Robert on 07764 244953 or firstname.lastname@example.org
James Simpson, our lead GDPR Partner is able to help with any compliance queries. James is also qualified to act as your Data Protection Officer (DPO), should your business fall within the threshold for this GDPR requirement. Please do not hesitate to contact James Simpson if you require any GDPR guidance on 07971 288261 or email@example.com