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CHIEF OBASEKI VS AFRICAN CONTINENTAL BANK LTD

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CHIEF OBASEKI VS AFRICAN CONTINENTAL BANK LTD

Legalpedia Citation: (1965-11) Legalpedia 98273 (SC)

In the Supreme Court of Nigeria

Holden At Abuja

Wed Nov 17, 1965

Suit Number: FSC 538/1963

CORAM


BAIRAMIAN CHIEF JUSTICE, SUPREME COURT

ONYEAMA JUSTICE, SUPREME COURT

AJEGBO JUSTICE, SUPREME COURT


PARTIES


CHIEF OBASEKI

APPELLANTS 


AFRICAN CONTINENTAL BANK LTD

RESPONDENTS 


AREA(S) OF LAW


CONTRACT-SPECIFIC PERFORMANCE

 


SUMMARY OF FACTS

The appellant sued the respondents for damages and specific performance at the trial court 

 


HELD


The court held that the Bank was not bound by the manager’s apparent approval of the sale (which was taken as the basis of argument) and there is no need to say more 

 


ISSUES


Whether the bank was bound by the purported sale by the manager
Whether the appellant was supposed to have notice of the banks regulations
 

 


RATIONES DECIDENDI


DOCTRINE OF CONSTRUCTIVE NOTICE


‘Where the regulations of a company are registered, persons dealing with the directors and other agents of the company are for the purposes of this article deemed to have notice of such regulations.’- BAIRAMIAN, J.S.C

 


ON PURPORT OF A SIGNATURE PER PROCURATION


‘A signature ‘per procuration’ on a bill of exchange, promissory note, or cheque, operates as notice that the agent has but a limited authority to sign, and the principal is only bound by such signature if the agent in so signing was acting within the actual limits of his authority.”- BAIRAMIAN, J.S.C

 


CASES CITED


Balfour v. Ernest (1859) 5 C.B. (N.S.) 601
Ernest v. Nicholls (1857) 6 H. L. Cas. 401
Mahony v. East Holyford Mining Co. (1875) L.R. 7 H.L. 869 at 893;

 


STATUTES REFERRED TO


Companies Act

 


CLICK HERE TO READ FULL JUDGMENT

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