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Contract Disputes Likely to Result from Brexit

October 22, 2020, Covington Alert

Whether or not a deal is reached with the EU prior to the end of the Brexit transition period on 31 December 2020, the period leading up to 2021 and for some time afterwards is likely to be an uncertain time for many businesses in the UK and beyond. In particular, the commercial effects of Brexit may cause a previously favourable contract to become a bad bargain, or potentially impossible or illegal to perform. Businesses are also likely grappling with elements of contracts that had been carefully calibrated to EU law, which governed trade between the UK and EU for decades, but which may no longer be applicable or appropriate.

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