For businesses, the start of a new year provides an excellent opportunity to reflect and prepare for the months ahead. While many focus on marketing and growth strategies for 2025, it’s equally important not to overlook the legal aspects of running a business. Ensuring your contracts are current and tailored to your future plans can safeguard your business and drive success. Below are some key areas to consider when reviewing your commercial contracts in 2025.

Stay Up-to-Date with Changing Laws

The laws and regulations governing contracts in England and Wales are constantly evolving, especially following the introduction of a new government in 2024. Each year, new legislation can impact how contracts are drafted, executed, and enforced.

For example, the House of Lords is currently reviewing the Data Protection and Digital Information Bill, introduced in the 2022–23 parliamentary session. If passed, this Bill could lead to significant changes to the UK GDPR, the Data Protection Act 2018, and the Privacy and Electronic Communications (EC Directive) Regulations 2003 (PECR).

Whether it involves updates to employment law, data protection regulations, or industry-specific rules, staying compliant with these changes is essential to minimise legal risks.

It’s advisable to have key contracts, such as your terms and conditions, reviewed periodically—ideally every few years—to ensure compliance with the latest laws. Identifying potential flaws or gaps in your contracts can help mitigate future disputes and liabilities.

Negotiate Better Terms or Draft New Contracts

Your business may have entered into long-term contractual commitments, leaving limited scope for renegotiation. However, it’s still worth reviewing existing contracts, as there may be provisions or mechanisms that can be activated. For instance, you might discover a price review clause that could help mitigate rising costs in delivering goods or services.

As businesses evolve, so do their needs—whether that means offering new services, managing shifting customer relationships, or adapting to changing market conditions. Contracts that were effective at the outset may become outdated or insufficient.

Failing to update agreements can leave businesses locked into unfavourable terms or overpaying unnecessarily. Reviewing existing long-term agreements and carefully drafting future contracts can ensure they align with current goals and market realities.

If you haven’t formalised an agreement in writing yet, now is the perfect time to include provisions that protect your interests and offer long-term benefits.

Protect Your Intellectual Property

Intellectual property (IP) is often among a business’s most valuable assets, encompassing trademarks, copyrights, proprietary technologies, and more. Safeguarding these assets through well-drafted legal agreements is essential.

An effective IP agreement can allow you to commercialise your assets for monetary gain while ensuring you retain ownership and control. Without proper protections in place, businesses risk losing control of their IP or failing to capitalise on its value.

Plan for Growth

As 2025 begins, many businesses will be looking to expand—whether by entering new markets, securing new clients, or launching innovative products. Growth often involves navigating new contracts, which may include complex terms or negotiations.

Having a clear understanding of your legal position and the options available to support your expansion is critical. Whether you’re negotiating supply agreements, partnership deals, or licensing arrangements, ensuring your contracts align with your growth objectives is key.

How We Can Help

Berry Smith has extensive experience in Commercial Law, assisting startups and established businesses alike with drafting, reviewing, and refining contracts. Whether you need advice on updating your current agreements, protecting your intellectual property, or navigating complex negotiations, our team is here to help.Contact us at commercial@berrysmith.com or call 029 2034 5511 to discuss your requirements and ensure your contracts are ready to meet the challenges of 2025.