G AND C LINES V HENGRACE NIGERIA LTD
June 20, 2025SAMSON EMEKA VS THE STATE
June 24, 2025Legalpedia Citation: (2001) Legalpedia (SC) 15117
In the Supreme Court of Nigeria
Fri Jul 6, 2001
Suit Number: SC.100/1996
CORAM
UTHMAN MOHAMMED , JUSTICE, SUPREME COURT
ANTHONY IKECHUKWU IGUH , JUSTICE, SUPREME COURT
MUHAMMADU LAWAL UWAS, CHIEF JUSTICE,NIGERIA
ALOYSIUS IYORGYER KATSINA –ALU, JUSTICE, SUPREME COURT
AKINTOLA OLUFEMI EJIWUNMI , JUSTICE, SUPREME COURT
PARTIES
THOMAS CHUKWUMA MAKWE APPELLANTS
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The 1st Defendant applied for a loan from the 2nd Respondent bank and it was granted on a guarantee provided by the Appellant in respect of his property covered by his statutory certificate of occupancy. The Appellant deposited his certificate of occupancy with the 2nd Respondent bank as an additional security for the said loan. On the other hand, the Appellant and 1st Respondent had a separate agreement with respect to the said property.
HELD
The 2nd Respondent is not bound by the agreement reached between the Appellant and the 1st Respondent in Exhibit A. This is quite plain, because the 2nd Respondent was not a party to the agreement.
ISSUES
“Whether the learned Justices of the Court of Appeal were right to hold that the bank was not bound by the contents of Exhibit A, an agreement between the appellant and the 1st defendant because the bank was not a party to the said agreement.”
RATIONES DECIDENDI
PRIVITY OF CONTRACT.
“It is trite law that as a general rule, a contract affects only the parties thereto and cannot be enforced by or against a person who is not a party to it. In other words, only the parties to a contract can sue or be sued on the contract and, generally, a stranger to a contract can neither sue nor be sued on the contract even if the contract is made for his benefit and purports to give him the right to sue or to make him liable upon it.” Per A. I. Iguh, Jsc
CASES CITED
1. Malone v. Laskey (1907) 2 K.B. 141 C. A.,2. Cameron v. Young (1908) A. C. 176 H. L.,3. Beswick v. Beswick (1967) 2 All E. R 1197, 4. Frederick Oboye Negbenebor v. Eudora Omowunmi Negbenebor (1971) 1 All N.L.R. 210. 5. Ikpeazu v. African Continental Bank Ltd. (1965) 1 NMLR. 374 at 379?
STATUTES REFERRED TO
None.
