„Master`s agreement.“ Merriam-Webster.com Dictionary, Merriam-Webster, www.merriam-webster.com/dictionary/master%20agreement. Access 27 Nov 2020. This law may also apply to the form of the treaty covered by Article 11 of Rome I, according to which the treaty is valid in its form if it fulfils the conditions of form of the law applicable to it on its merits. However, this is not the only rule on the form of the contract; The contract is valid even if the form provided by the legislation of the country in which it was concluded is respected. Therefore, if the financing law is under Spanish law, the collateral should be recorded in a notarial agreement, but if the contract is concluded in a country that does not require this formal requirement, it does not cease to be valid. However, if the deposit contract is concluded in Spain, it can be executed in the Spanish form of an agreement confirmed by the notary, even if the pledge is subject to English law (!) and even if the underlying relationship is governed by English law. Please note that information relating to the notarized form or any other particular form of the transaction in question falls under Article 11. To be clear, this does not mean that an English court decision after Brexit is not recognised and enforced by an EU court, and that does not mean that an English law agreement is less „valid“ or that EU and EEA counterparties will not be able to continue using binary agreements under English law. This potentially means more costs, more insecurity and more bureaucracy. Suppose an Italian counterpart and a French party act under an English legal agreement with the English court after Brexit; There is a dispute and the English court renders a judgment in favour of the Italian opponent. The Italian side would have to have this English court decision recognized by a French court in order to enforce it – it is another step in the process that could take years or, worse, lead another court to decide to reopen part of the case.
Working groups have been set up, which have made good progress in addressing problems and identifying changes that may be needed. It is about preparing for an uncertain future. After Brexit, there will be good reasons to continue to use an English legal-master agreement and to use an agreement governed by EU law. We want to be prepared for all eventualities and provide our members with the tools they need. Therefore, some EU/EEA counterparties may wish to retain this automatic recognition and application in the trade between them. There are other reasons why companies want to continue to negotiate under agreements between the EU and the EEA. For example, EU and EEA credit institutions are required to include contractual recognition of in bail in third country contracts, in accordance with Article 55 of the EU Directive on The Recovery and Resolution of Banking Failures – and without any kind of agreement, this would also include English legislation that regulates ISDA master contracts after Brexit.