Many of the most immediate challenges posed by Brexit for our clients centre on the impact of Brexit on their existing and new contractual relationships. Brexit (and more particularly the uncertainty still surrounding Brexit) has the potential to alter the bargain underpinning those contracts. The pain points for our clients include security of supply, imposition of tariffs, currency fluctuations and restriction on freedom of movement of people.
For clients with significant operations in NI, GB and Ireland, we have been working with senior management to identify and assess the risks arising from potential Brexit scenarios. We can provide a tailored analysis of your business including the consideration of delays in logistics, impact of tariff changes, changes to subsidies and funding, changes to regulatory standards and potential access to other markets outside the EU.
In relation to existing contracts, the key contract terms under consideration are those relating to delivery, price and payment, change control, termination and law and jurisdiction. In relation to new contracts, the focus remains Brexit planning, in particular, prescribing the means by which a range of Brexit outcomes on the operation of the contract are to be addressed.
Changes in the legislative landscape may also have a significant impact on existing contractual relationships. We have also been assisting clients in preparing for Brexit in relation to the legislative changes expected to be brought about on and after Brexit. In turn, these legislative changes will need provided for in the contracting documents relied on by our clients.
If you or your business have any questions on the potential implications of Brexit in relation to commercial contracts, please feel free to get in touch.