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Business Exchange Centres Ltd ( Mwb ) V Rock Advertising Ltd Essay

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The Court of Appeal (CA) in MWB Business Exchange Centres Ltd (MWB) v Rock Advertising Ltd (Rock) settles an issue which there had been conflicting decisions previously by confirming that contracts which expressly prohibit oral amendments can be amended orally. However, it may also have created doubt on the effectiveness of anti- oral variation clauses.

This case between the Claimants, MWB, and the Defendant, Rock was held in the civil division of the CA on appeal from central London County Court. MWB operated managed office space in London and for 7 – 8 years prior, Rock occupied as license premises managed by MWB. In August 2011, Rock and MWB entered into a written agreement for larger premises to be occupied by Rock under license. Rock was unable to meet the financial commitment and by late February 2012, it had arrears of over £12,000. Rock claimed an oral agreement was made between MWB where Rock would pay less for a while and then more in order to clear the arrears. On the same day it paid £3,500 to MWB, being the first instalment due in accordance with the revised payment schedule. MWB disputed the oral agreement and exercised its right under the license agreement to lock Rock out of the premises. In the Central London County Court, MWB sued Rock for arrears, Rock in its defence, used the oral agreement and counterclaimed for losses incurred as a result of wrongful expulsion from the premises. HHJ Moloney held that the parties did make an oral agreement which
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