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LAW 1510 Contract Law

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Briefing Paper : Rules on the Enforceability of Contract Variations

The Law Commission launches a consultation on the legal rules governing the enforceability of contract variations. In particular, the consultation relates to the enforceability of variations entered into due to one of the parties to a contract being unable to meet its obligations under the contract. The decision to consider reforming this area of the law is based on the fact that it is an issue that comes up frequently in the courts, reflecting a perceived lack of certainty and consistency in the applicable rules.

You are employed as a solicitor with a large UK law firm. Your firm are keen to respond to the consultation as they have experienced first-hand the difficulties in advising clients on this area of law due to the complexities and ambiguities that exist.
 
You are tasked with preparing an internal briefing paper, which will form the basis for preparing the firm’s response to the Law Commission consultation. Specifically, your briefing paper should aim to do the following:
  • Relevant case law, explain what are the main legal arguments that parties commonly invoke with regard to the enforceability of a contract variation when one of the parties claims not to be legally bound by the variation in question.
  • Assess whether the legal authorities in this area are coherent and consistent with one another. If you believe that they are, explain how this is the case. If you believe they are not, explain what you consider to be the issues and/or inconsistencies.
  • Discuss possible ways in which the legal rules in this area might be reformed and explain which, if any, of such reforms would, in your view, be beneficial.
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