Risky Business - Ep 3: Commercial contracts - pitfalls reminders – recent case on variation

Associate Laura Nelson and Partner Anna Myrvang discuss the recent decision in Advanced Multi-Technology for Medical Industry and others v Uniserve Ltd and others [2024] EWHC 1725 (Ch) which is a good example of how the English courts approach disputes about contractual variation and the authority of agents.

In this case, the Court considered whether a contract had been validly varied by a third party, who the Defendant asserted did not have authority to agree a binding variation. For the reasons discussed in this episode, the Court’s view was that the variation was binding, suggesting that where a third party has apparent authority, whether that third party has actual authority may not batter.

This case serves as a useful reminder that clear words should be used when drafting variation provisions in commercial contracts.