The English Courts Broaden The Scope For The Oral Variation Of Contracts

In three cases this year, the English courts have held that terms in contracts - providing that no variation shall be binding unless made in writing and signed by both parties - do not necessarily prevent an informal variation:

Globe Motors Inc v TRW Lucas Varity Electric Steering Ltd [2016] EWCA Civ 396: a Court of Appeal decision relating to a long term contract for the supply of automotive industry products. Beatson LJ commented that "in this context ... the fact that the parties' contract contains a clause [requiring any variation to be in writing] does not prevent them from later making a new contract varying the contract by an oral agreement or by conduct." MWB Business Exchange Centres Ltd v Rock Advertising [2016] EWCA Civ 553: another Court of Appeal decision relating to an agreement to license office premises. ZVI Construction Co LLC v Notre Dame...

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