An anti-oral variation clause is a part of a contract which specifically states that any amendments or changes to the contract must be done in writing. Strict application of such a clause would provide a great degree of certainty for the parties and avoids disputes between parties without expensive and lengthy litigation.
A potential nightmare for drafters and parties to a contract has been roused following the Court of Appeals judgment in the case of Globe Motors Inc v TRW Lucas Varity Electric Steering Ltd [2016] EWCA Civ 396 (Globe Motors).
The Court found that in the absence of a common law restriction:
‘The parties have freedom to agree whatever terms they choose to undertake, and can do so in a document, by word of mouth, or by conduct. The consequence in this context is that in principle the fact that the parties’ contract contains a clause such as Article 6.3 (which was an anti-oral variation clause) does not prevent them from later making a new contract varying the contract by an oral agreement or by conduct’ Click here for more details..
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