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At the time of writing, the Conservative Party has just won the general election. So what now for the year ahead in the field of business law?  

The biggest key to watch is not whether but how Brexit happens in January 2020.  Over the coming weeks, we will know whether the “oven ready” Withdrawal Agreement will be passing through the House of Commons, or whether a No-Deal could be back on the table. In the latter case, there is no transition period, and it will be like a big bang in legal and political terms. Doubtless, there will eventually be calm after the storm, but in the interim period, businesses will need to respond to potentially significant legal change and uncertainty as to which laws and regulations apply. Under a Withdrawal Agreement, all eyes will be on the future relationship and whether it will truly be a bold and new relationship or a fudge and more of the same. 

From a business law perspective under the Withdrawal Agreement, much of existing EU law and regulation will continue to apply in the interim period, avoiding the risk for immediate chaos and uncertainty, until the new relationship is forged and finalised. 

Accordingly, for a lot of small to medium-sized businesses, despite the significant political and economic changes in the year ahead, other than any sector specific law or regulation changes or immediate Withdrawal Agreement changes, 2020 may not in fact be a year of significant change. We are not expecting any game changer events. There are no major EU regulations coming into force which will force change to how business is done, such as the implementation of GDPR in 2018.  

In the UK courts, there will be no shortage of case law developments. The High Court and Court of Appeal will likely be awash with company proceedings such as petitions for unfair prejudice, directors duties and contract interpretation.  

It will be interesting to see if any legislation which fell by the wayside due to the priorities and dominance of the Brexit debates get resurrected in 2020. For example, the Unconscionable Conduct in Commerce Bill 2019 (UCCB). The UCCB would create a new offence of conduct in trade and commerce that is unconscionable. It had its first reading in 2019, but made no further progress, after the dissolution of Parliament in 2019. 

In the ever changing world we live in, with advances in technology and consumer buying behaviours, 2020 may also see a change in how commercial legal services are delivered. The notion of a high street solicitor providing business law advice is becoming a thing of the past and it may be harder for SMEs to find the right expert. Businesses may benefit from building up relationships with their preferred legal services provider in advance of problems arising. Perhaps the opportunity for the SME in 2020 is one of contract review to ensure contracts with customers and suppliers are appropriate and compliant, limitation of liability provisions are in place and adequate, and general contract boilerplate is in place for the unexpected.   

CONTACT OUR COMPANY COMMERCIAL SOLICITORS

If you are looking for advice on your commercial agreements, wish to buy or sell a business, make or receive an investment into a business, or get into partnership or other joint venture, then get in touch with Spencer Laymond in our company commercial team.