Brexit: What is the impact on international contracts?

The exit of the United Kingdom from the EU (the so-called Brexit) is a consolidated reality now, considering that the "transitional period" expired on 31 December 2020.

However, the discipline of many sectors involving UK and EU stakeholders is still not clear.

Many rules are changed in the relations involving European or Britain natural or legal person.

One of the most important field concerns contracts concluded with Britain subjects after Brexit.

First of all, it should be taken into account that the regulatory sources of the European Union (in particular European regulations) will no longer be applicable to such contractual relationships.

Secondly, since the United Kingdom is outside of the European Union, each time it will be necessary to identify the rules provided by specific international conventions depending on the type of contract.

Finally, when concluding the contract, it will be crucial to pay attention to the clauses of the contract concerning the jurisdiction. In this regard, about the jurisdiction, it should be remembered that also Reg. EU 1215/2021 will no longer apply to British subjects.

Therefore, it will be necessary the assistance of a legal expert to untangle between the different rules in order to avoid unpleasant surprises after the conclusion of a contract with elements of internationality, for example in the case in which one of the parties is British.

Milano, May 14th 2021.

Avv. Giovanni Babino