i-law

Litigation Letter

Oral variation not prevented by anti-oral-variation clause

Globe Motors Inc v TRW Lucas Varity Electric Steering Ltd (2016) 33 BLM 06 4, [2016] EWCA Civ 396, 20 April 2016

TRW entered into an exclusive supply agreement with Globe under which it had to purchase all its electric motors from Globe, and Globe could not sell the same parts to anyone else. In a dispute over whether TRW was in breach of the agreement, a secondary issue arose as to whether Globe Motors Portugal (Porto), a subsidiary of Globe, was a party to the agreement, by virtue of TRW and Globe’s dealings under the agreement over a long period as if Porto was a party. Article 6.3 of the agreement provided that the agreement could only be amended by a written and signed document.

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