Shell UK Ltd v Lostock Garages Ltd

Shell UK Ltd v Lostock Garages Ltd
Decided 30 June 1976
Citation(s) [1976] 1 WLR 1187

Shell UK Ltd v Lostock Garages Ltd [1976] 1 WLR 1187 is an English contract law and UK competition law case concerning implied terms and restraint of trade.

Facts

Lostock and Shell had a written contract that Shell would supply petrol and oil to Lostock, in return for Lostock buying its goods from Shell exclusively. In a price war, Shell reduced its petrol prices for some nearby petrol stations. Customers went there, and Lostock had no choice but to trade at a loss. Lostock sought another supplier and Shell sued Lostock for breach of contract.

Judgment

The Court of Appeal, by a majority, held that no term could be implied that Shell should not "abnormally discriminate" against Lostock. It was held that Shell would not have agreed to the term[1] and that the implied term would be too vague.

Notes

  1. ↑ see also, The Good Luck [1989] 2 Lloyd's Rep 238, 273 and The Gudermes [1993] 1 Lloyd's Rep 311, 323
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