Key considerations for businesses as confirmed by the IOD , on contracts post-Brexit are as follows:
- Re-read all existing contracts – This is where assessing the extent of your business’s direct and indirect links to the EU is essential.
- Pricing – Exchange rate volatility could significantly alter the value of your importing (and/or exporting) costs and make the originally negotiated pricing mechanism too costly. New tariffs and changes to cross-border VAT could also add to these. These costs may be passed along the supply chain, so knowing where in the chain your business is situated is essential.
- Territorial scope – Some firms (especially in financial services) may have contractual provisions referencing the EU and/or its right to operate within it. Clarification may be needed to ensure the parties can fulfil the terms of their agreement post-Brexit.
- Dispute resolution – In the event of a Brexit, where cases are heard could start to matter for firms engaged in cross-border activity, at least with respect to enforcement.
