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

Alec Lobb (Garages) Ltd. v Total Oil (GB) Ltd.
Court:Court of Appeal of England and Wales
Full Name:Alec Lobb (Garages) Limited & Ors v. Total Oil (GB) Limited
Citations:EWCA. Civ. 1984. 2., [1985] 1 WLR 173
Judges:Waller LJ, Dunn LJ, Dillon LJ
Keywords:Undue influence

Alec Lobb (Garages) Ltd. v Total Oil (GB) Ltd.. 1984 . EWCA . Civ . 2. is an English contract law case relating to 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. Eventually he paid off debts and ten years after sought 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. This is similar to the case of Feras zob kabber v. Zaid (2011).

Judgment

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

See also