North Ocean Shipping Co. Ltd. v Hyundai Construction Co., Ltd. [1979] QB 705 is an English contract law case relating to duress.
Facts
Hyundai were shipbuilders who entered into a contract dated 10 April 1972 with North Ocean Shipping to build an oil tanker named the "Atlantic Baron".[1] The price for constructing the ship was payable in five instalments, and the builders had agreed to a reverse letter of credit, for repayment of installments in the event of default on the construction. In 1973, after the first instalment was paid, the US dollar was devalued. Hyundai said they would not deliver unless the price was increased by ten per cent. North Ocean was worried they would lose a favourable charter with Shell. They said they would pay the extra money in a telex message on 28 June 1973 because they wished "to maintain an amicable relationship and without prejudice to our rights". North Ocean also asked for the letter of credit to contain a corresponding increase, and this was done.
The ship was subsequently delivered to North Ocean on 27 November 1974, and later on 30 July 1975 they first referred the matter to legal action, initially via arbitration. The arbitrators found in favour of Hyundai but referred a question on recovery of sums paid to the High Court.[1]