Contracts govern almost every aspect of daily life in ways that may not even be recognized. From accepting the terms and conditions of an application on our smartphones to haggling over prices when selling local construction sites, contracts are a fundamental part of modern life. It is therefore gratifying to note that the highest Court of Appeal in the United Kingdom has recently made a final decision on this matter. In Rock Advertising Limited/MWB Business Exchange Centres Limited  UKSC 24, the Supreme Court unanimously ruled that the oral amendment in question was inoperative when reviewing the terms of a contract containing a nominatory clause. The case concerned a licensing agreement for the use of service offices, which contained a typically nominated provision. After accumulating royalty arrears for some time, the underwriter proposed to review the payment plan. The first instance found that an oral agreement had been reached between the parties regarding such an amendment, but that the amendment was not valid because it was not written and was signed by the parties (as provided for in the NOM provision). For the Supreme Court, the question then was whether such an amendment, whether agreed orally, could still be effective in light of the NOM provision. These agreements are also referred to as bonding contracts or a promise made by a third party to a creditor to take over another person`s debts. It is important to note that the status of fraud applies only to commitments made to the creditor. When a third party agrees to repay a debtor`s debt, it does not have to be enforceable in writing (as long as the other elements of a valid contract are in place). It is likely that there could also be legal action against the tenant`s lawyer, since this amendment was missed in an essential clause prior to the signing of the contract. In addition, written contracts protect all parties from misunderstandings that may arise as part of the negotiation process.
When a party signs a written contract without first reading it, it is nevertheless required to comply with the terms and conditions as long as the contract fulfils all the legal elements of a valid contract. (For this reason, it is useful to verify a contract of a contract lawyer trained in contract law to ensure that the document reflects the actual conditions that the parties intend to meet during the negotiations.) A valid agreement must have the essence of a valid contract, they are: strictly, a contract is an enforceable agreement by which the parties ready to capacity accept in exchange for certain conditions. It contains the promise to do something or to do it against a valuable benefit known in return. Thus, oral chords, even if they may look like a swamp bag, can be proven in court by several clues. Even for many witnesses who prove an agreement, the court is often tasked with proving and identifying the terms of oral conventions. It is highly likely that the parties` personal bias and non-complete insanity would undermine validity and call into question the existence of a valid oral agreement.