Alec Lobb Ltd v Total oil

Mr Lobb was the managing director of a small petrol station in South Street, Brain-tree, Essex. It had to buy petrol only from Total Oil. 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.

Mr Peter Millett QC held that the agreement could not be set aside, and Mr Lobb appealed.

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.

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