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)  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  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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