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No oral modification clauses and the termination of contracts

Building Law Monthly

No oral modification clauses and the termination of contracts

The Supreme Court in Kabab-Ji SAL (Lebanon) v Kout Food Group (Kuwait) [2021] UKSC 48 held that, as a matter of construction, a no oral modification clause applied to an alleged termination of the contract between the parties. Its conclusion in this regard should be contrasted with the decision of the Court of Appeal in Singapore in Charles Lim Teng Siang v Hong Choon Hau [2021] SGCA (on which see our May 2021 issue, pp 8–10) where it was held that a no oral modification clause did not apply to a subsequent oral rescission of the contract between the parties. The difference between the two cases can, however, be explained by reference to the different wording of the respective clauses in that the clause in the present case included the “termination” of the contract within the no oral modification clause.

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