Anangel v. IHI

In Anangel Atlas Compania Naviera S.A. v. Ishikawajimi-Harima Heavy Industries Co. Ltd. (No. 2),1 the first four plaintiffs were one-ship companies within the Angelicoussis group, each of which contracted in 1983 with the defendants (IHI) for the construction of a ship. In 1984 and 1985 there was a slump in the shipping industry. The plaintiffs contended: that a letter written in July 1985 recorded a (further) contract that they should be accorded “most favoured customer” treatment; that another customer, G, had benefited from more favourable terms of payment; that the plaintiffs were entitled to the same terms; and that therefore they were entitled to repayment of certain sums paid on account of the shipbuilding contracts. Hirst, J., held that the letter of July 1985 was an offer accepted by IHI (alternatively, IHI’s response was a counter-offer accepted subsequently by the plaintiffs) resulting in an agreement, which was supported by consideration, to form a binding contract. Argument turned inter alia on whether the plaintiffs provided consideration.