Can you orally modify a written contract

However, a recent Supreme Court decision has highlighted that a contract containing a NOM clause can only be varied by the method prescribed by that NOM clause. Failure to follow NOM provisions means that a party seeking to rely on an oral variation is left in a difficult position, opening themselves up to considerable risk of the oral variation not being enforceable. It should be noted, however, that an oral variation could still, in limited circumstances, give rise to an estoppel — a legal doctrine which prevents a person from going back on his or her word.

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Russell L. Forkey, P. Contact Russell L. Practice Areas. Commercial Litigation. Nevertheless, Maryland courts will generally enforce a subsequent oral agreement to modify a written contract containing a NOM provision where the oral agreement to modify is established by a preponderance of the evidence. Freeman v. Stanbern Const. To successfully enforce an oral modification or waiver of a term in a contract containing a NOM provision, a party must prove two things: one, the existence of an oral agreement to modify or intent to waive a contract term; and two, the mutual intent to waive the NOM provision.

Hovnanian, Md. The same evidence can satisfy both requirements. In other words, the actions that indicate a party intended to waive the substantive contract term at issue will also suffice to prove that party intended to waive the NOM provision.

Contracts required to be in writing under the Statute of Frauds are treated somewhat differently. Ordinarily speaking, contracts within the Statute of Frauds, including leases having a term of more than one year, may not be modified orally.

Abrams, Md. Counsel to borrowers of loans are frequently requested to provide enforceability opinions to the lenders.