Edward Balliol in the context of "Wars of Scottish Independence"

The Second War of Scottish Independence broke out in 1332, when Edward Balliol led an English-backed invasion of Scotland. Balliol, the son of former Scottish king John Balliol, was attempting to make good his claim to the Scottish throne. He was opposed by Scots loyal to the occupant of the throne, eight-year-old David II. At the Battle of Dupplin Moor Balliol's force defeated a Scottish army ten times their size and Balliol was crowned king. Within three months David's partisans had regrouped and forced Balliol out of Scotland. He appealed to the English king, Edward III, who invaded Scotland in 1333 and besieged the important trading town of Berwick. A large Scottish army attempted to relieve it but was heavily defeated at the Battle of Halidon Hill. Balliol established his authority over most of Scotland, ceded to England the eight counties of south-east Scotland and did homage to Edward for the rest of the country as a fief.

As allies of Scotland via the Auld Alliance, the French were unhappy about an English expansion into Scotland and so covertly supported and financed David's loyalists. Balliol's allies fell out among themselves and he lost control of most of Scotland again by late 1334. In early 1335, the French attempted to broker a peace. However, the Scots were unable to agree on a position and Edward prevaricated while building a large army. He invaded in July and again overran most of Scotland. Tensions with France increased. Further French-sponsored peace talks failed in 1336; in May 1337, King Philip VI of France engineered a clear break between France and England, starting the Hundred Years' War. The Anglo-Scottish war became a subsidiary theatre of this larger Anglo-French war. Edward sent what troops he could spare to Scotland, in spite of which the English slowly lost ground in Scotland as they were forced to focus on the French theatre. Achieving his majority, David returned to Scotland from France in 1341; by 1342, the English had been cleared from north of the border.

The Treaty of Berwick, signed at Berwick-upon-Tweed, England, on 3 October 1357, officially ended the Second War of Scottish Independence. In this second phase of the Wars of Scottish Independence, which began in 1333, King Edward III of England attempted to install Edward Balliol on the Scottish throne, in place of King David II, son of Robert the Bruce.

Under the terms of the treaty, David II was released by the English, who had captured him at the Battle of Neville's Cross in 1346. The English demanded a ransom of 100,000 merks, or £67,000 sterling for his release, payable in annual instalments over a period of ten years, but only the first two payments were made. The first instalment of the ransom was paid punctually, the second was late, and after that no more could be paid. Taxation was increased in order to pay the ransom, and David began to embezzle from his own ransom fund, causing widespread resentment, and culminating in the ransom protest of 1363.

David II (5 March 1324 – 22 February 1371) was King of Scotland from 1329 until his death in 1371. Upon the death of his father, Robert the Bruce, David succeeded to the throne at the age of five and was crowned at Scone in November 1331, becoming the first Scottish monarch to be anointed at his coronation. During his childhood, David was governed by a series of guardians, and Edward III of England sought to take advantage of David's minority by supporting an invasion of Scotland by Edward Balliol, beginning the Second War of Scottish Independence. Following the English victory at the Battle of Halidon Hill in 1333, King David, Queen Joan and the rump of his government were evacuated to France, where he remained in exile until it was safe for him to return to Scotland in 1341.

In 1346, David invaded England in support of France during the Hundred Years' War. His army was defeated at the Battle of Neville's Cross and he was captured and held as a prisoner in England for eleven years, while his nephew Robert Stewart governed Scotland. In 1357 the Treaty of Berwick brought the Second War of Independence to an end, the Scots agreed to pay a ransom of 100,000 merks, and David was allowed to return home. Heavy taxation was needed to pay for the ransom, which was to be paid in instalments, and David alienated his subjects by using the money for his own purposes. By 1363 it was found impossible to raise the remaining ransom, and David sought its cancellation by offering to bequeath the succession to the Scottish throne to Edward III or one of his sons. In 1364, the parliament of Scotland rejected David's proposal to make Lionel of Antwerp, Duke of Clarence, the next king. Despising his nephew, David sought to prevent him from succeeding to his throne by marrying his mistress Margaret Drummond and producing an alternative heir. When his second wife failed to do so, David unsuccessfully attempted to divorce her.