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.

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.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 10 September 2025
  • Commercial Real Estate

Trouble at the Table: The Challenges Facing the UK Hospitality Sector in the run up to Christmas 2025

The UK hospitality sector, long celebrated for its vibrancy and resilience, is facing a perfect storm of economic, operational, and structural challenges in 2025.

art
  • 09 September 2025
  • Commercial Real Estate

Le bail commercial anglais: quelques points essentiels à considérer

Typiquement, les baux commerciaux en Angleterre sont de court terme, d’une durée de 5 ou 10 ans, avec un loyer de marché et des ajustements du loyer périodiques en fonction de l’inflation ou d’autres facteurs. 

art
  • 09 September 2025
  • Corporate and M&A

The Failure to Prevent Fraud Offence – be prepared to avoid criminal liability

The failure to prevent fraud offence is a new corporate offence which has come into force on 1 September 2025.

art
  • 08 September 2025
  • Employment

Can employers still make changes to contracts after the Employment Rights Bill?

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment Rights Bill because their ability to fairly dismiss employees who do not agree contractual changes is being restricted. 

art
  • 05 September 2025
  • Privacy and Data Protection

When Ignoring a DSAR Becomes a Criminal Offence

On 3 September 2025, Mr Jason Blake appeared at Beverley Magistrates Court and was fined for failing to respond to a data subject access request (DSAR).

art
  • 04 September 2025
  • Commercial Real Estate

Under the Hammer: essential tips for property auctions

This article explores the key considerations to keep in mind when selling or purchasing a property at auction.