CORAM
BAIRAMIAN, JUSTICE SUPREME COURT
TAYLOR, JUSTICE SUPREME COURT
UNSWORTH, JUSTICE SUPREME COURT
PARTIES
M.S. AWOLESI
APPELLANTS
NATIONAL BANK OF NIGERIA LIMITED
RESPONDENTS
AREA(S) OF LAW
BANKING LAW—GUARANTEE AGREEMENT—BREACH OF
SUMMARY OF FACTS
The 2nd defendant/appellant was sued along with the 1st defendant by the plaintiff for the claim of £10,023-14s-3d being the guarantor for the 1st defendant to which this particulars was appended: “2th July 1957 to balance the banking account £10,023-14s-3d”.
HELD
I would discharge the surety from liability and would allow this appeal and dismiss the claim with costs assessed at 50 guineas in favour of the appellant in this Court.
ISSUES
Is the opening of account No.2 by the respondent bank in favour of the principal debtor, a substantial breach of the agreement of guarantee, exhibit “C”, entered into between the appellant and the respondent bank?
RATIONES DECIDENDI
PROTECTION OF GUARANTORS?
‘If the parties intended that the principal debtor should be placed in a position where he could open more than one account, and the guarantee should cover such accounts, then in my’ judgment they should say so in clear and unambiguous words, for it has been said that the law favours a surety and protects him with considerable vigilance and jealousy.’ TAYLOR, F.J
CASES CITED
Ward v. National Bank of New Zealand. (1882-3), 8 A.C. 755 at 764
STATUTES REFERRED TO
Not Available