The tightened or loosened framework of future relations between the United Kingdom and the countries of the European Union, following the exit negotiations, is still unknown. An examination of relations with the United Kingdom is now vital, at least in order to follow the exit negotiations and anticipate the effects.

• Contracts and business relationships to which English law could apply need to be identified.

The content of English law will be affected by the disappearance of the direct applicability of, in particular, the European regulations that apply without national transposition. The content of the law applicable to contracts could therefore be significantly amended.

• Identify the contracts likely to be affected by a potential economic imbalance

Existing contracts therefore need to be examined to know if they contain a hardship clause. Contracts currently under negotiation that will be signed from 1 October 2016 on (the effective date of the Order on contract law reform) need to be negotiated taking into account the new provisions of French contract law regarding unforeseeability.

Future financial dealings between British companies and companies from European Union Member States risk, at the very least, being subject to customs duties and an exchange rate much more instable than those of today.

• Activities in regulated sectors need to be identified

Some of these activities are only possible, in fact, due to the existence of a “European passport” or an authorization or approval issued under European law and must also be identified. The end of the validity of such passports / authorizations / approvals could render the exercise of the activity in question impossible or necessitate the request of specific authorizations.

Marie Davy and Guillaume Forbin