The Case Of Mwb Business Exchange Centres Ltd V Rock Advertising

1613 Words Nov 14th, 2016 7 Pages
The case of MWB Business Exchange Centres Ltd v Rock Advertising Ltd [2016] EWCA Civ 553 was one which came on appeal from Central London County Court, regarding whether the court should allow contracting parties to vary their agreement orally; despite their agreement containing an ‘anti-oral’ variation clause. In the original decision HHJ Moloney established that an oral variation had in fact been agreed to, however it was unable to take effect due to the clear written ‘anti-oral’ variation clause. He also found that MWB was not ‘estopped’ from enforcing their rights under the agreed licence agreement by accepting the £3,500 payment from Rock. However, Rock appealed against both of these findings. The appeal case came to the decision that in this case was to allow the parties to orally vary their agreement. This decision was an interesting one made by the Court of Appeal as it allowed contracting parties’ the freedom to be able to agree terms, determining that the ‘anti-oral’ variation clause in fact did not preclude the succeeding oral variation of their agreement. It concluded that the oral agreement “did amount to good consideration”. The decision considered the non-binding cases of United Bank Ltd and World Online Telecom Ltd, but confirmed in MWB Business that the case of World Online Telecom Ltd should be followed. However, the recent decision again opened up the debate on oral variations to contracts containing a no amendment clause, potentially opening the…

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