SQE Daily.

Oral variation of a contract containing a 'No Oral Modification' clause (Rock Advertising)

Northgate Office Space Ltd licensed serviced offices in England to Quill Design Ltd for two years at £5,000 a month. Clause 11 of the signed written licence states: "This licence may only be varied in writing signed by both parties." When Quill fell into arrears, Northgate's credit manager agreed with Quill's director in a phone call to accept £3,000 a month for six months, with the shortfall spread over the rest of the term. Nothing was put in writing. Northgate's director has now refused to honour the arrangement and claims the full contractual rent. Assume no argument based on estoppel arises.

Which of the following best describes the effect of the telephone agreement?

Choose one answer to see the reasoning.

  1. Contract · FLK1No. L029

    Extra pay for performing an existing contractual duty: practical benefit (Williams v Roffey)

    Which of the following best describes whether Kofi can recover the £6,000?

  2. Contract · FLK1No. L034

    Varying a contract after the third party has communicated assent (C(RTP)A 1999 s.2)

    Which of the following best describes the effect of the agreement to transfer the booking?

  3. Contract · FLK1No. L050

    Oral guarantee of another's debt (Statute of Frauds 1677 s.4)

    Which of the following best describes whether Kestrel can enforce Ahmed's promise against him?