- The defendant leased a petrol station from the Plaintiff
- Part of the agreement was that they would not buy petrol from anyone else during the lease
- The duration of the lease was 15 years
- The defendant began dealing with another company
- The Plaintiff sought an injunction to stop them from buying petrol from the other company.
- Was the “exclusive dealing” clause enforceable?
- The Court refused to enforce the injunction.
- The Court stated that the ‘exclusive dealing’ was unreasonable, because it was more than actually necessary to protect the legitimate commercial interest of the Plaintiff.
- The 15 year term was of particular relevance.
- “There is nothing whatsoever to show that a tie for 15 years was necessary to ensure for Amoco the stable outlet and economic distribution at which it was entitled to aim.” (Gibbs CJ, 321)
- Available at https://jade.io/article/66426
Save this case