Brexit - Impact On Company And Commercial Law
To be very clear, whilst at this stage the Brexit referendum vote had had a seismic political impact, its contractual effect remains very limited: at this juncture. However, the vote has introduced fresh uncertainty into the contractual landscape.
At the present time and until an exit becomes a reality, the UK remains a fully functioning member of the EU, with all of the rights and obligations which follow under the EU treaties. No pre-emptive action in anticipation of departure can take place without facing action in the European Court of Justice and claims for compensation. Therefore, businesses face the realistic prospect of having to comply with certain new regulations over the coming years in circumstances when the UK government might then repeal such arrangements upon Brexit becoming a reality: a living demonstration of how the current situation is unhelpful to business certainty and the investment climate.
The impact of the referendum vote on commercial contracts is yet to be worked through. It may be prudent to consider whether (if at all) the performance of an obligation under a contract might be frustrated (i.e. is the contractual performance condition inherently linked to the UK being an EU Member State). It is unlikely that the vote is...
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