P to supply steel to D. Entered another contract with price increase. During contract, price of steel increased. P and D orally decided to a increase in price
Was the oral agreement legally binding, or does it fail for want of consideration?
Variation of the original contract will be judged objectively by the parties’ intentions, and new consideration is required to validate the variation
**Must be some indication that the parties actually intended to rescind the old agreement and enter into a new agreement
Oral variation of written agreement was an implied rescission of the written contract and the creation of a new one.
**The consideration for this new oral agreement was the mutual agreement to abandon the old contract
Oral agreement void for want of consideration