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Kreglinger v New Patagonia Meat and Cold Storage Co Ltd
''Kreglinger v New Patagonia Meat & Cold Storage Co Ltd'' () (UKHL 1 ) is an English property law and UK insolvency law case, concerning whether an exclusivity agreement for buying sheepskins, that accompanied a loan, frustrated the borrower's right to pay off and discharge its debt.
==Facts==
In 1910 Kreglinger, who ran a woolbroker firm, agreed to lend New Patagonia Meat Ltd £10,000 secured by a floating charge on its business, repayable in five years, with an option to repay the remaining sum on a month’s notice. In addition, New Patagonia agreed to sell sheepskins exclusively to Kreglinger, or pay a commission if they sold to other persons, so long as New Patagonia gave the best price. When New Patagonia paid off the loan in 1913, and wished to start selling its sheepskins to other firms, Kreglinger claimed the right to an injunction. New Patagonia argued that the exclusivity provision was a clog on the equity of redemption and should be consequently held void.
Lord Cozens-Hardy MR, Buckley LJ and Kennedy LJ held that the agreement was void. Kreglinger appealed.
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