A Systematic Review: Brexit's Impact on UK-EU Business Contracts

This report presents a systematic review of the implications of Brexit on contracts between businesses in the United Kingdom and the European Union. It begins by outlining the background of Brexit, its potential impacts on trade, and the uncertainty it has created for businesses. The report then delves into the basic principles of English contract law, analyzing how Brexit might affect existing and future business contracts. It explores both the positive and negative legal implications of Brexit, considering factors such as changes in trade agreements, regulatory frameworks, and the potential for legal innovation. The report examines key findings, links them to the research objectives, and provides recommendations for businesses to navigate the evolving legal landscape. The analysis covers the standing of ongoing contracts, the impact on future contracts, and potential legal outcomes, concluding with the key takeaways and suggestions for future research.

The Implication of the Law of Contract, for
Contracts between UK and EU Business Pre
and Post Brexit; A Systematic Review
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Abstract
It is the first time that any member of the state is leaving the European Union. Withdrawal of
the UK from the EU would have a great impact on both, and it will depend on the nature of
their new relationship. Uk would not have so much political flexibility after Brexit which
would have a severe impact on the UK. Additionally, It will affect trade volumes and a
reduction in investment in the UK. This divergence would increase over a longer period of
time. It would also affect the supply chain of UK involving firms and the level of impact s not
possible to predict as it depends on the model of Brexit.
It would also have a great impact on the EU as it would lose an influential member, which
will result in shifting of power to the European Council. It will also have a new relationship
with the UK outside the EU. It would impact the business environment by creating a
regulatory competition by forcing the EU to have liberal trade policies. Brexit would have a
great impact on both the UK and EU as the UK would enjoy new trade deals but with less
freedom and less priority over EU. It would also the negotiation of existing deals. Eu would
face less priority for us and Japan and other countries and will become a less attractive
partner. Brexit would result in more EU political integration an external representation, but
still, EU would lose hard and soft power assets,
There would be three impacts that both EU and UK would face because of Brexit. The first
one is uncertainty. Many UK businesses are already worried about the impact of Brexit on
UK business and its uncertainty. Although if the UK withdraws from the EU and establishes a
new relationship with the EU, then it would have an uncertain relationship and uncertain
effect on business. The second impact is related the political dynamics. UK has always
remained one of the most influential members of the EU. Brexit would result in changes in
the relationship between many countries. It could bind them together or even push them apart.
The third impact that Brexit could have is political contagion. Some of the impacts of
withdrawing of the UK from the EU would also be on other countries. If the UK is able to
adopt more flexible policies and gets succeed, then it would have a great effect on reST of
Europe. It will result into disintegrative forces elsewhere.
Hence there will be many consequences of Brexit for English contract law. It will have a high
influence on legal innovation in private law. Brexit would reduce the level of innovation, and
the UK would enjoy this flexibility. It would have some legal consequences on the citizen of
the EU in the UK on behalf of trade, environment, and human rights protection. The exit of

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the UK from the EU would also affect the economic relationship of the country. Uk would
move away from cooperation and integration with the neighbouring countries, and hence it
would reduce economic growth of the country.

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Acknowledgement
This dissertation has been supported by my both Internal and External guides, who had been
there for me in my every difficulty area. Their guidance helped me in those areas where I
used to lack with information or seek guidance to cover up the entire dissertation.
Hence, I would like to express my gratitude towards ___________________without whose
support this dissertation report would not have been possible. Thanks for helping me out and
your persistent help made this dissertation report successful.
I would also like to thank my colleagues who have supported me throughout in completion of
this dissertation report.
Last but not the least; I would also like to thank my University for giving me such wonderful
opportunity to explore such valuable and important topic which made my experience more
enthusiastic and deep learning.
Thank you sincerely.

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Table of Contents
Introduction................................................................................................................................9
1.1 Introduction......................................................................................................................9
1.2 Background of the study...................................................................................................9
1.3 Rationale and significance of the study..........................................................................10
1.4 Research aim..................................................................................................................11
1.5 Research objectives........................................................................................................11
1.6 Research questions.........................................................................................................11
1.7 Summary........................................................................................................................13
Research Design and Methodology..........................................................................................14
2.1: Introduction...................................................................................................................14
2.2: Outline of Research Methods:.......................................................................................14
2.3 The Research Onion.......................................................................................................15
Figure 2.1: The Research Onion...........................................................................................16
2.4: Research Philosophy.....................................................................................................16
2.4.1: Justification for the Use of chosen Philosophy..........................................................17
2.5: Research Approach.......................................................................................................17
2.5.1: Justification for the Use of chosen Research Approach:............................................18
2.6: Research Design:...........................................................................................................18
2.6.1: Justification of the Use of Explanatory Research Design:.........................................19
2.7 Data Analysis Plan:........................................................................................................19
2.8 Data Collection Methods:...............................................................................................19
2.9 Ethical Considerations:...................................................................................................20
2.10 Research limitations.....................................................................................................20
2.11 Summary:.....................................................................................................................20
Chapter 1: English Contract Law.............................................................................................22

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3.1 Introduction....................................................................................................................22
3.2 Basic Principles of English Contract Law......................................................................23
3.3 Critical review of the English Law of Contract.............................................................24
3.4 English law of contract used to draft commercial and business contract.......................25
3.5 Implications of Brexit on the English Law of Contract.................................................26
3.6 Linking current research with existing literature...........................................................28
3.7 Literature gap.................................................................................................................28
3.8 Summary........................................................................................................................29
Chapter 2: Analysis..................................................................................................................31
4.1 Introduction:...................................................................................................................31
4.2 The standing of the ongoing contracts between the UK and the European Union........31
4.3 Impact of Brexit on future Businesses contracts between the UK and the post Brexit
European Union....................................................................................................................33
4.4 Positive Legal Implications of Brexit on the business contracts between the UK and the
European Union....................................................................................................................36
4.5 Negative Legal Implications of Brexit on the business contracts between the UK and
the European Union..............................................................................................................38
4.6 Summary........................................................................................................................39
Conclusion:...............................................................................................................................40
5.1 Key findings...................................................................................................................40
5.2 Linking with objectives:.................................................................................................41
5.3 Recommendations:.........................................................................................................42
5.4 Limitations of the Study:................................................................................................42
5.5 Future Scope:..................................................................................................................42
Reference List:.........................................................................................................................44
Appendices...............................................................................................................................51
Appendix 1: Gantt Chart......................................................................................................51
Appendix 5: Ethics Form.....................................................................................................52

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Introduction
1.1 Introduction
The report is mainly concentrated on the Brexit sensation and impacts it could have on the
relationship that is shared by the European Union and the UK. Brexit is likely to have a long-
term effect on all the businesses going on between both the UK and EU. However, the
associations of Brexit are dependent upon various factors that are discussed in detail in this
report later. Brexit is believed to affect every sector of the UK and EU economy indirectly.
1.2 Background of the study
Brexit, an abbreviation for the British exit, to be precise was a decision by the British public
to leave the European community. The result of this vote crossed expectations and toiled all
the global market, causing the British Dollar to fall to its lowest level against the dollars in 30
years. 31'st October 2019 is the new Brexit deadline for Britain to approve the withdrawal
agreement. European Union is a settlement built to improve the trade between the member of
the states. Having the combined strength to bargain, the European Union holds some benefits
from the world trade. However, the delay presents a big aid to the UK as now they can think
and negotiate a better deal1.
There are many commercial contracts that would be neutral whether the UK leaves or
remains in the EU. European Union currently has a well-established single market for goods;
however, there is no such market for services. Hence deciding the taxation policies for
services becomes quite difficult. The services getting supplied from the United Kingdom are
imposed to high-value taxes, if the services provider travel to European Union then also a
VAT which is the foreign liability tax will be imposed. After the imposition of Brexit, these
rules will become more complicated2. The economy of Britain is highly dependent on the
services; hence, it is important for the British government to consider every aspect and take a
decision which is fair for everyone3.
According to a poll being conveyed amongst the working class, many interesting facts were
found which could consequence of Brexit. 44% of the freelancers and contracts working right
1 Ahmed, M. and Beaumont, P., 2017. Exclusive choice of court agreements: some issues on the Hague
Convention on choice of court agreements and its relationship with the Brussels I recast especially anti-suit
injunctions, concurrent proceedings and the implications of BREXIT. Journal of Private International
Law, 13(2), pp.386-410.
2 Anderson, R.G., 2018. Heinz Kötz, Europäisches Vertragsrecht.
3 Alexander, K., Barnard, C., Ferran, E., Lang, A. and Moloney, N., 2018. Brexit and financial services: law and
policy. Bloomsbury Publishing.

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now feel that Brexit will have a broad and deep impact on their business. While 18% of them
have speculated that Brexit will have a positive influence on their business, 38% of people
still believe that Brexit will result in the downfall of businesses and the economy. Many
business owners are still in doubt whether they should relocate their business out of the UK or
not4.
The impact of Brexit is likely to be at many levels. The most basic level at which Brexit
could create an impact is by affecting the commercial terms of the contract. At the global
economic level, Brexit could lead to significant movement in exchange rates. As a result, the
movement of cross border goods will be affected due to the imposition of tariffs and the
method of collection VAT and the imposed will change too which may result in adverse cash
flow and other cash flow implication5.
1.3 Rationale and significance of the study
The politics behind Brexit is still doubted and has thrown the businesses in turmoil from
receiving a certainty to where their relationship with a customer belonging to EU stands.
After the Labour Party Conference in Liverpool will there be a clear vision of Brexit or will it
be the continuation of muddle approach that has been going on? Here business owners can
take precautionary measures to make sure that their contracts are still in the best possible
shape even after the hard Brexit outcome6.
One thing is for sure that both the UK and EU are running out of time to figure out a midway
to which both parties could happily agree. The consequence of a 'no deal' outcome will
impact the businesses. According to the Chartered Institute of Procurement and Supply
(CIPS), many businesses are at stake, and there is a risk of one out of every 10 British firms
reaching to the extent of bankruptcy due to further delays7.
This report also focuses on the protection which businesses could take according to their
English Law and figure out a way to be saved from the negative impacts of Brexit or in case
of 'no deal' Brexit. It may lead to a rise in the production cost due to the shortage of labours or
increased traffics after the UK being considered a 'third country' delays due to pending
4 Arrowsmith, S., 2016. The implications of Brexit for public procurement law and policy in the United
Kingdom. Public Procurement Law Review, pp.1-35.
5 Östlund, U., Kidd, L., Wengström, Y., &Rowa-Dewar, N. (2011). Combining qualitative and quantitative
research within mixed method research designs: a methodological review. International Journal of Nursing
Studies, 48(3), pp. 369-383.
6 Austen-Baker, R., 2017. Implied terms in English contract law. Edward Elgar Publishing.
7 Baker, J., 2019. Introduction to English Legal History. Oxford University Press.

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paperwork. Movement in the exchange rates in such a manner will make trading more
difficult8.
1.4 Research aim
The exact manner of the UK's exit from EU is still very unpredictable, but despite this
uncertainty, if business owners plan ahead of what implication Brexit could have on their
business, they would get benefitted from it. One of the major key elements in planning would
be the potential impact of Brexit on legal contracts. There is already a lot of concern in the
market regarding the upcoming contracts. Certain questions which people need to ask are-
provisions which any contracting party need to follow now? How businesses safeguard their
position in the market? There are certain sections where the impact is predicted to be most
significant.
1.5 Research objectives
Every contract is based on some of the condition from the side of both parties. In order to
deeply understand the contracts, it is needed to look at the condition on which they were
made. With the help of this research question, which is about to be discussed, it will be a lot
easier to understand everything and analyse all the results deeply. Questioning is the art of
learning, and the same process is being used to complete the research with the best possible
theory9.
1.6 Research questions
1. What are the assumptions of Brexit on the law of contract?
2. What are the contracts between UK and EU Business before Brexit?
3. What are the contracts between the business of the EU and the UK after Brexit?
4. Positive Implication that Brexit has on the agreements between the business of the EU
and the UK?
5. Negative Implication of Brexit on the agreements between the business of the EU and
the UK?
These questions for research will be very helpful in analysing all the Legal and non-legal
consequences that the Brexit deal will have on all the business contracts between the UK and
EU. These subjects will pave the way of learning the key topic and its component. The
8 Babonneau, F., Haurie, A. and Vielle, M., 2018. Welfare implications of EU effort sharing decision and
possible impact of a hard Brexit. Energy Economics, 74, pp.470-489.
9 Banister, P., Bunn, G., Burman, E., & Daniels, J. (2011). Qualitative Methods In Psychology: A Research
Guide. London: McGraw-Hill International.

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impacts of pre and post Brexit will be discussed in details. Many European and law firms of
other predominating country are based in the UK, and they may transmit because of the vast
terror of risk and the falling in contracts of EU business. With a proper understanding of the
above situation, it will be simpler to answer collect and compile the necessary evidence and
data regarding Brexit. All the research questions are fundamental as they act as a catalyst for
the research having the research move forward. Also, with a defined pattern of research and
question, it will become easier to know where this research should end. Every question has
been crafted very carefully analyse and answer comprehensively in due respects to the
associations of Brexit10.
The first question will be focused on forming answers for the law of settlement of England
and areas like Wales, which have important trade associations and business. Also, the
business contract with other nations and the impact Brexit will have over it will be
discussed11.
Commercial Implication which is potentially very significant, such as the imposition of
tariffs, changes in exchange rates, restrictions in movement of trade or people will be
addressed. All of this could result in financial instability. However, in the case of 'no deal'
parties are unlikely to find relief, so there is no point of further delay12.
The second question will discuss the effect and the contract between the businesses which are
currently going on between the EU and UK. Both the parties are bound by several contracts,
hence coming to the ultimate resolution is tough. One of the major concerns of several
business owners is whether those who are already in the contract will be affected by Brexit
and if they will need then how and what will be its impact in short and long run. It is obvious
that the rules and regulations will change, but the matter of concern is how will it affect the
profitability of the firm13.
Lastly, the negative impact of Brexit on all the current and the upcoming business contracts
will be analysed in detail as there is a clear division of thoughts regarding Brexit, so a study
on its adverse impacts internally, as well as externally, will allow us to judge Brexit more
10 Beiske, B. (2017). Research Methods: Uses and limitations of questionnaires, interviews and case studies,
Munich: GRIN Verlag.
11 Braci, A., 2015. Contract Law: An Introduction to the English Law of Contract for the Civil Lawyer.
12 Bernstein, A., 2017. Brexit and adult social care: planning for the future. Nursing And Residential Care, 19(6),
pp.338-340.
13 Brown, R., Liñares-Zegarra, J. and Wilson, J.O., 2019. The (potential) impact of Brexit on UK SMEs:
regional evidence and public policy implications. Regional Studies, pp.1-10.

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clearly. Since Brexit is a very tiresome process that is yet to be executed, it is a hurdle in
itself to predict and analyses its implication14.
1.7 Summary
Once these questions are answered, there will be a new and clearer vision of Brexit. By
understanding these answers to the complex relationship between the business of the EU and
the UK, it would be easier to know the complexity of the situation.
14 Bruwer, E., 2018. Settlor control and trustee liability: an analysis of English and offshore trust law with
indicators for the development of South African trust law.

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Research Design and Methodology
2.1: Introduction
To answer all the research questions discussed previously in the report; Secondary research
criteria will be used. All the data collected through various secondary sources will provide a
base to discuss the impact of Brexit on all the business of the EU and the UK all the nation
under the European Union. The reason why the secondary method of collecting data and
research is used is that already all the data is relevant and is trustable to be from reliable
sources. On the other hand, this method is quite economical and efficient. It provides multiple
views of the same problem considering all of its faces and thus a broader solution could be
derived after a healthy comparison of its negative and positive impacts15.
The literature review for this report has been derived from these sources
 Magazines
 Books
 Any form of information publicly available
 Academic Journals
The aim of this research is to look at consequence pre-Brexit and its outcomes post Brexit.
Also, all the additional details achieved related to the business laws of the UK and EU during
the research from secondary sources will have immense importance. Out of all, the Secondary
method is the best criteria to analyse the effect of Brexit between the business of the EU and
the UK16.
2.2: Outline of Research Methods:
Here are some of the steps that must be taken into consideration while discussing the effects
of Brexit on all the relevant business contracts. One of the most important steps is the proper
determination of the topic on which the research is to be done. As mentioned, the topic of
study here is 'The Implication of the law of contracts, for contracts between the business of
the EU and the UK before and after Brexit. Resources required for the research will be the
next crucial step for this resource. All the relevant information found from secondary sources
like in books, magazines, academic generals are to be analysed and illustrated, namely
quoting all the readily relevant information sources17.
15 Bryman, A. (2012). Social research methods (5th ed.). Oxford: Oxford University Press.
16 Snieder R. &Larner, K. (2019). The Art of Being a Scientist: A Guide for Graduate Students and their
Mentors, Cambridge: Cambridge University Press.
17 Bryman, A., & Allen, T. (2011). Education Research Methods. Oxford: Oxford University Press.