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Alec Lobb (Garages) Ltd. v Total Oil (GB) Ltd.

is an English contract law case concerned with undue influence.

Facts

Mr. Lobb was the managing director of a small petrol station in South Street, Braintree, Essex. It had to buy petrol only from British branch of French oil company Total S.A. In 1969 he was in financial difficulty. Contrary to his solicitor's advice, he entered into a lease and lease back arrangement with a new tie agreement with Total Oil. This proved costly but eventually he paid off his debts. Ten years later, he asked for the agreement to be set aside as being a restraint of trade and unconscionable.

In the High Court, Mr Peter Millett QC, sitting as a deputy High Court judge, held that the agreement could not be set aside, and Mr Lobb appealed.

Judgment

Dillon LJ held that it was not a restraint of trade or an unconscionable bargain and even if it had been, it would have been barred by the principle of laches.

Leave to appeal to the House of Lords was refused.

See also

References