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Vincent Lee provides an analysis of The Supreme Court of the United Kingdom’s landmark decision on “No Oral Modification” Clauses and the practical implications on the parties to a commercial contract in Hong Kong.

It is common for parties to a commercial contract to insert a clause stating that “all variations to the contract must be agreed, set out in writing and signed on behalf of both parties before they take effect” (commonly known as a “No Oral Modification” or “NOM” clause). If the parties subsequently have a purported oral agreement to vary a particular term of the contract but do not say anything about the NOM clause, will such a variation be effective?