MWB Business Exchange Centres Ltd v Rock Advertising Ltd (Rev 1)

MWB Business Exchange Centres Ltd v Rock Advertising Ltd (Rev 1)

The anti-oral variation clause did not preclude the parties from orally varying the contract. The oral variation agreement was supported by sufficient consideration, as MWB obtained a practical benefit beyond mere part payment of an existing debt. Therefore, the oral variation was binding and enforceable. Promissory estoppel did not apply as there was no inequity or detriment to Rock.

Parties
Claimant/respondent: MWB Business Exchange Centres Ltd; Defendant/appellant: Rock Advertising Ltd
Jurisdiction
England and Wales
Judgment Date
21 June 2016
Procedural Posture
Civil Appeal / Appeal From Central London County Court to Court of Appeal
Outcome
Appeal allowed
Legal Topics
Variation of Contracts, Consideration, Promissory Estoppel, Anti Oral Variation Clauses

Case Brief

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Parties

MWB Business Exchange Centres Ltd

Claimant/respondent

Rock Advertising Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Central London County Court to Court of Appeal

  1. 1 Whether an anti-oral variation clause precludes oral variation of a contract
  2. 2 Whether there was good consideration for the oral variation agreement
  3. 3 Whether promissory estoppel or waiver applied to prevent enforcement of the original contract

Ratio Decidendi

The anti-oral variation clause did not preclude the parties from orally varying the contract. The oral variation agreement was supported by sufficient consideration, as MWB obtained a practical benefit beyond mere part payment of an existing debt. Therefore, the oral variation was binding and enforceable. Promissory estoppel did not apply as there was no inequity or detriment to Rock.

Court Disposition

Appeal allowed

Orders

  • Judgment for Rock Advertising Ltd; the oral variation agreement is enforceable against MWB Business Exchange Centres Ltd.