Non Variation Clause Case Study

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FIRST GROUND: THE NON-VARIATION CLAUSE PRECLUDES RELIANCE BY THE PLAINTIFF ON AN ORAL VARIATION TO THE CONTRACT 1. The non-variation clause should be upheld in the circumstances. 1.1. The contract contains a valid non-variation clause that states that, “No amendment or variation to this contract shall be binding unless reduced to writing and signed by the parties.” 1.2. When the written contract was concluded between Flush Plumbing and Bridgetown on 28 January 2016, Flush Plumbing agreed to be bound by the terms of the contract. Therefore, Flush Plumbing was aware of the non-variation clause. If Flush Plumbing wanted to make a variation to the contract, it should have been done in writing and signed by both parties. 1.3. A non-variation clause The contract at hand is a standard commercial contract, between two parties on an equal footing. Both parties to the case are private companies with equal bargaining power. There was no abuse of power, or advantage taken of a vulnerable party. The agreement made between them, with animus contrahendi, should thus be honoured. 5. Enforcement of the non-variation clause would amount to enforcement of the parties’ freedom to contract, which is a public policy concern. 5.1. On the facts, the defendant clearly stated that it wanted the contract to be in writing for the sake of certainty, thus explaining their reasoning for the non-variation clause. Enforcing the non-variation clause is thus enforcing the defendant’s freedom to contract. 5.2. As stated in the case of Brisley v Drotsky , the limitation imposed by the clause is itself a manifestation of the parties’ ‟contractual freedom pursuant to which they, by prior design, agreed to this limitation in order, to enhance certainty in their future dealings and to minimise disputes between them.‟ 6. The clause is in the interest of both parties, for the sake of certainty in their dealings with one another. It is not a right conferred only upon the defendant. A non-variation clause clearly operates in favour of both

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