A firm sold paper for tissue manufactures. They acted as their New York agents. In the contract that was signed, the firm gained sales and distribution rights for three years. This also had an option to extend the time. There was a clause inserted in the contract that stated, in the event of a dispute, there would be no reference to the courts but the parties would be bound by an ‘honourable pledge’. The contract was extended although the manufacturers then terminated it too early and refused to process orders made before the termination. The claimant sued on the basis of the broken agency agreement, and also for the failure to deliver goods that had already been ordered.