Search

How can we help?

Icon

“No Oral Variation” Clauses: Do They Work?

Many commercial contracts contain a clause to the effect that any variations or amendments to the contract must be in writing.  Parties to commercial agreements favour such clauses because they promote certainty: the parties know what they have to do to amend the contract and disputes about oral discussions are in theory avoided.

Since such clauses are so widely used that it is surprising that the law on whether they work has been unclear.  Indeed parties arguing such clauses have been able to point to two conflicting decisions in the Court of Appeal: United Bank –v- Asif (2000) and World Online Telecom –v- I-Way (2002).

A case in the Court of Appeal on 20 April 2016 – Globe Motors and Others –v- Lucas and Others at last provides a very clear statement of how the Court of Appeal is likely to treat such cases in future.  Important as this decision is, it is still, unfortunately, not definitive, since the comments of the Court were “obiter”, which means that they did not form part of the reasons for the Judgment.  However in the Globe Motors case the Court of Appeal said that it was not bound by the two previous conflicting decisions and that its view was that, even where a contract provided that there was to be no variation except in writing, an oral variation would nevertheless be effective.

Since such clauses are so widely used that it is surprising that the law on whether they work has been unclear.

Whilst, for the reason explained above, this case is not the last word on the subject, and as ever the exact words will need to be considered in each case, the future attitude of the Court to such clauses is now almost certain to be that they do not work.

About this article

Disclaimer

This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 08 May 2025
  • Employment

Statutory Sick Pay Scheme changes: how can employers prepare for such changes?

The government has recently changed the Statutory Sick Pay provisions; it is anticipated that such changes will ‘help people to stay in work and grow the economy’.

Pub
  • 07 May 2025
  • Corporate and M&A

Thinking of exiting your business? Part 1

In the first part of this three-part series, we explore why planning your exit strategy early can shape the way you build, grow, and eventually sell your business for maximum value. From mindset to strategy, we unpack how thinking about the end from the beginning can lead to smarter decisions and better outcomes.

Pub
  • 07 May 2025
  • Immigration

UK Immigration: Essential update for employers

The UK’s immigration system will see major changes in 2025. Watch our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business.

art
  • 06 May 2025
  • Corporate and M&A

Can a disclosure letter give rise to a misrepresentation claim?

Provided by a seller to a buyer, a disclosure letter is an important element in any business sale or purchase transaction.

art
  • 02 May 2025
  • Employment

Sex, Gender and the Law: What the Supreme Court’s Recent Ruling Means for Employers

The recent UK Supreme Court decision in For Women Scotland Ltd v The Scottish Ministers  UKSC 16 has generated significant attention, but for most employers, we would argue that its practical impact is relatively limited—at least for now.

art
  • 29 April 2025
  • Privacy and Data Protection

Use of Personal Devices at Work: Why a Bring Your Own Device Policy is Essential

We will highlight in this article what changes have been made to the DUAB since the early stages of the Bill.