Tool Metal Mfg Co ltd v Tungsten Electric Co Ltd

Tool Metal Mfg Co Ltd v Tungsten Electric Co Ltd
Court House of Lords
Full case name Tool Metal Mfg Co Ltd v Tungsten Electric Co Ltd
Decided 16 June 1955
Citation(s) [1955] 2 All ER 657
Case history
Subsequent action(s) none
Court membership
Judge(s) sitting Viscount Simonds, Lord Oaksey, Lord Reid, Lord Tucker, Lord Cohen

Tool Metal Mfg Co Ltd v Tungsten Electric Co Ltd [1955] 2 All ER 657 is a cited case regarding promissory estoppel.[1]

Background

Tool Metal was set up by its German parent company Krupp to manage its tungsten carbide patents in England.

TMM later took legal action against TEC for breach of its patent in their manufacturing of machine tools. TEC ultimately decided to enter into a licensing agreement with TMM rather than fight the matter in court.

On the onset of World War II in 1939, TMM agreed to suspend its licensing fees from TEC.

In 1945, with the war coming to an end, TMM tried to reinstate the licensing fees again, with little success.

TMM ultimately sued TEC for the licensing fees.

Held

The court held that TMM were entitled to reinstate the licensing fees, as long as reasonable notice was given, which in this case was from 1 January 1947.

References

  1. Chetwin, Maree; Graw, Stephen; Tiong, Raymond (2006). An introduction to the Law of Contract in New Zealand (4th ed.). Thomson Brookers. p. 220. ISBN 0-86472-555-8.
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