EU Contract Continuity Clause
The LMA has published a new model clause designed to give enhanced contract certainty on the occurrence of an ‘event’, as described therein, associated with membership of the EU or economic or monetary union in the EU:
A number of LMA members raised questions regarding Contract Continuity Clauses in general, and LSW1820 in particular, in the context of Brexit. Recognising that LSW1820 was published in 2012, as a product of the potential for “Grexit” at that time, the LMA has broadened this in the form of a new model clause LMA 5284, which we have now published.
LMA5284, which is now available on the Lloyd’s Wordings Repository (LWR), provides that contracts will continue unless there is an urgent need to terminate a contract for licensing or other regulatory reason following Brexit or other EU member exit or Eurozone break-up.
This clause, like all LMA model clauses, is purely illustrative and established and distributed for the guidance of Members, who are free to agree to different conditions.
Any queries regarding the above should be addressed to Alison Colver on: 020 7327 8370 or by email at firstname.lastname@example.org.