Don’t underestimate the value of a no oral modification clause, say Donald Lambert & Andrea Nicholls
- Demonstrates the value of a no oral modification clause.
- Offers practical pointers.
Property professionals are familiar with the idea that many contracts creating an interest in real property must be in writing and signed by all the parties, or the contract will have no effect. Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 provides that contracts for the sale or other disposition of an interest in land must be in writing and signed by all the parties. This provides certainty and removes the risk of misunderstandings and litigation.
Licences to occupy real property, however, fall outside this regime, as do many other contracts dealt with by property professionals. Outside of those areas where writing is a statutory requirement, oral contracts are perfectly permissible and enforceable.
A licence to occupy does not create an interest in land; it is merely a personal contract between the occupier and the owner
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