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ARTICLE · 29 SEPTEMBER 2016

MWB Business Exchange Centres Ltd v Rock Advertising Ltd (2016)

Court of Appeal allows the parties to vary their agreement orally even though their agreement contained an "anti-oral variation" clause.

United KingdomLitigation, Mediation & Arbitration

Court of Appeal allows the parties to vary their agreement orally even though their agreement contained an "anti-oral variation" clause

In this interesting decision by the Court of Appeal, which places emphasis on contracting parties' freedom to agree terms, it decided that an anti-oral variation clause did not preclude the subsequent oral variation of the agreement.  The oral agreement was supported by consideration.

After the appellant, Rock Advertising Ltd (a marketing services company), incurred arrears of licence fees and other charges, the respondent, MWB Business Exchange Centres Ltd (a company managing office space in London), exercised its right under the licence agreement to lock Rock Advertising out of the premises and gave notice. MWB claimed for arrears and damages. Rock Advertising counterclaimed for loss and damage for wrongful exclusion from the premises, claiming that an oral agreement had been made with the respondent's credit controller to

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