The risk of a country exiting the Euro zone has been in the discussion for quite some time—most prominently with regard to Greece. Any such exit would result in the exiting country no longer using the Euro as legal tender but a newly created domestic currency. Given that a currency replacement will most likely be followed by an immediate devaluation of the new currency, all existing contracts where at least one of the contract parties is located in the exiting country can in some way be affected. Hence, companies that have contractual relationships with companies located in an exiting country have a strong interest in knowing and managing their exposure to such a currency devaluation, how it could affect their contracts and what they can do about it.
Dr. Malte Richter and Kevin Philipp Lach will discuss the legal frameworks for the contracts at issue and what parties to commercial and M&A agreements can do to protect themselves against negative effects of a devaluation of their Euro claims imposed by the exiting country.