Volume 21, Issue 2 (2017)                   CLR 2017, 21(2): 83-108 | Back to browse issues page

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Ahmadi J S. Comparative Study of Written Modifications clause. CLR 2017; 21 (2) :83-108
URL: http://clr.modares.ac.ir/article-20-8894-en.html
Assistant Professor, Department of Law, Payame noor University, Tehran,Iran
Abstract:   (8327 Views)
“Written Modifications clause” is a one of the most common clauses in commercial contracts. It means that any amendment had to be in writing and be signed by both parties, and that it was not open to the parties to amend the Agreement orally.The purpose of the clause is to promote certainty and avoid false or frivolous claims of a contract and to preclude all variations which are not in accordance with the formalities required by the clause. There are two main meanings to the clause. The first meaning is to interpret the clause as a formal requirement to make an amendment binding. The second alternative is to interpret the clause as a mere presumption clause which the clause establishes a strong presumption that the contract is not intended to be varied unless it is done in writing. Each one of Contract parties may not object to different perform of another party or Some oral changes especially in Continuation Contract, but it does not be considered as a modification to that contract. The clause has been said to be effective as a first line of defense when the other party alleges that the contract has been varied orally or by conduct. Despite the clause, subsequent mutual agreement even oral, overrides the clause and effects oral modification. Under many Legal systems on the basis of Estoppel, the conduct of the parties even subsequent to the conclusion of the contract, good faith and fair dealing despite the clause oral modification is valid.
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Received: 2016/05/30 | Accepted: 2017/07/26 | Published: 2017/08/23

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