CORAM

SAMSON ODEMWINGIE UWAIFO JUSTICE, SUPREME COURT

COKER JUSTICE, SUPREME COURT

PARTIES

FORTUNE INTERNATIONAL BANK PLC APPELLANTS

RESPONDENTS

AREA(S) OF LAW

SUMMARY OF FACTS

The plaintiff sued the defendants for breach of contract to pay on a letter of credit. The 2nd defendant, a Bank, had given the plaintiffs a written guarantee that the outstanding will be paid together with interest in three installments.

HELD

The court held that the bank was liable and that the lower court ought to have awarded interest in the sum at the rate admitted by the defendants. ?

ISSUES

1. Whether the Court of Appeal was right in setting aside the judgment of the trial Court and holding the Appellant liable to the 1st & 2nd Respondents for Breach of Contract under the two (2) Letters of Credit.2. If the answer to (1) above is in the affirmative, whether Exhibit D2 did not relieve the Appellant of all/any liability and/or liabilities under the two (2) Letters of Credit.3. Was the Appellant obliged under Exhibit P13 to pay any money to the 1st and 2nd Respondents without further reference to the buyer – 3rd respondent?”4. Whether the Court of Appeal was right to dismiss the claims for the transport expenses and the 11.5% per annum interest on the principal sum of DM 540,000 claimed from 1/5/92 up to date of judgment on the outstanding sum of DM 540,000.

RATIONES DECIDENDI

CASES CITED

1. Eastwood V. Kenyon (1840) 11 Ad. & EL. 438 at 446; (1840) 113 ER 482 at 4852. Alli V. Ikusebiala (1985) 1 NWLR (pt.4) 630 at 641; 3. Ekwunife V. Wayne (WA.) Ltd (1989) 5 NWLR (pt.122) 422 at 440-44 1; 4. Macaulay V. NAL Merchant Bank Ltd (1990) 4 NWLR (pt.144) 283 at 311

STATUTES REFERRED TO

The Evidence Act

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