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ARTICLE · 12 JULY 2018

Projects & Construction Law Update - June 2018

The Supreme Court has surprised everyone by doing a u-turn on anti-oral variation clauses, reversing the relatively recent position formed by the courts in 2016, which had found that a contract...

United KingdomReal Estate and Construction

CASES

Changes in making changes

Rock Advertising Limited v MWB Business Exchange Centres Limited [2018] UKSC 24

The Supreme Court has surprised everyone by doing a u-turn on anti-oral variation clauses, reversing the relatively recent position formed by the courts in 2016, which had found that a contract with anti-oral variation clauses could still be amended by the parties orally or by conduct.

In 2016, three key judgments were handed down which encouraged us all to believe that the courts would be prepared to permit variation by conduct or oral variation arguments, even where the relevant contract contained a 'no oral variations' clause. This was particularly relevant to construction contracts, where it is not uncommon for variations to take place informally or not otherwise in accordance with the requirements of the contract and, of course, for disputes to ensue. Following the 2016 decisions, it was understood that parties would be able to argue that

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