CORAM
ADEMOLA CHIEF JUSTICE, NIGERIA
BAIRAMIAN JUSTICE, SUPREME COURT
COKER JUSTICE, SUPREME COURT
PARTIES
CHIEF FESTUS MAKENE IKOMI
APPELLANTS
BANK OF WEST AFRICA LTD
RESPONDENTS
AREA(S) OF LAW
LAW OF CONTRACT- CONTRACT OF GUARANTEE
SUMMARY OF FACTS
The appellant guaranteed a customer of the respondent in respect of his existing debt and sought to withdraw the guarantee 24hrs after on the grounds that he thought he was guaranteeing a loan to be given to the customer by the bank and not an existing loan. His action was dismissed by the trial court.
HELD
The court dismissed the appeal.
ISSUES
Whether the learned trial judge was right in dismissing the appellant’s case
RATIONES DECIDENDI
DUTY ON GUARANTOR TO INQUIRE INTO THE CREDIT STATUS OF A CUSTOMER OF A BANK BEFORE GUARANTEEING HIM
‘The proper presumption in most instances is that the customer has been overdrawing and wishes to do so again; it is up to the intending guarantor to inquire if he wishes.’ – Bairamian J.S.C.
WHETHER A PARTY WHO IS COMPLETELY AT FAULT FOR HIS ERROR CAN SEEK SPECIFIC PERFORMANCE
‘a mistake made by a party through his own fault entirely is not necessarily a valid defence to a suit for specific performance’ – Bairamian J.S.C
CASES CITED
Tamplin v. James (1880) 15 Ch. D. 215 at 222
Webster v. Cecil 54 Eng.R.812
McCutcheon v. David Macbrayne Ltd. (1964) 1 W.LR. 125, at 134
General Omnibus Co. Ltd. v. Holloway [1912] 2 K.B.72
STATUTES REFERRED TO