BEST (NIGERIA) LTD VS BLACKWOOD HODGE (NIGERIA) LTD & ORS

CORAM

PARTIES

BEST (NIGERIA) LTD APPELLANTS

BLACKWOOD HODGE (NIGERIA) LTDOSAGIE OKEKE OTEGBOLA & CO.IME UMANA RESPONDENTS

AREA(S) OF LAW

SUMMARY OF FACTS

The Appellant, at the Lagos State High Court, sued the 1st Respondent claiming an order for specific performance of a contract for assignment of the 1st Respondent’s property as well as an order for inquiry into damages and other consequential orders. It also claimed against the 3rd Respondent an order of injunction preventing any beneficial transfer of rights in the property to him by the 1st defendant which case he lost thus warranting this appeal.

HELD

Court held that the appeal was devoid of merit and same was dismissed.

ISSUES

Whether the Lower Court was right in holding that there was no enforceable contract between the appellant and the 1st Respondent to entitle the Appellant to an order of specific performance. Whether the Lower Court was right to hold that a valid contract exists between the 1st Respondent and the 3rd Respondent being a bonafide purchaser for value without notice of the property in dispute.

RATIONES DECIDENDI

CONTRACT- PREREQUISITES OF.

“It is basic that to constitute a binding contract, there must be an agreement in which the parties are ad idem on essential terms and conditions thereof. The promise of each party must be supported by consideration. “

CONTRACT- DISCHARGE OF

“It is clear to me that a contract between parties may be discharged by breach of a fundamental term by any of the parties. There is no gain-saying the point that a breach of contract is committed when a party to the contract without lawful excuse fails, neglects or refuses to perform an obligation he undertook in the contract or Incapacitates himself from performing same or in a way backs down from carrying out a material term”.

CONTRACT- BREACH BY A PARTY

“Where a party to a contract is in breach of a material term of same, the breach gives the aggrieved party a leeway or an excuse for non-performance of its own side of the bargain such a party is at liberty to treat the contract as extinguished or at an end.”.

PARTIES ARE BOUND BY THEIR AGREEMENT.

“Parties are bound by the terms agreed to in a contract. If the conditions for the formation of a contract are fulfilled by the parties thereto, they will be bound. It is not the function of a court to make a contract for the parties or to rewrite the one which they have made.”

SPECIFIC PERFORMANCE.

“In making an order for specific performance, the court must exercise its discretion judicially and judiciously as well. The Judge has to be discreet and balance the interest of both sides properly in his bid to do justice to the contending parties.”.

BONA FIDE PURCHASER FOR VALUE.

“A bona fide purchaser for value is one who has purchased property for valuable consideration without notice of any prior right or title which if upheld will derogate from the title which he has purported to acquire undoubtedly.”.

CASES CITED

1. Alfotrin Ltd. v. Attorney-General of the Federation (1996) 9 NWLR (Pt. 475) 634at 657|2. Yaro v. Arewa Construction Ltd. (2007) 17 NWLR (Pt. 1063) 333|3. L.S.D.P.C. v. N.L.S. SF Ltd. (1992) 5 NWLR (Pt. 244) 653 at 671″.|4. Adeoti & Anr. v. Ayofinde & Anr. (2001) 6 NWLR (Pt. 709) 336.|5. Yadis (Nig.) Ltd. v. C.N.I.C. Ltd. (2007 14 NWLR (Pt. 1055) 584 at 609|6. UBN v. Ozigi (1994) 3 NWLR (Pt. 333) 385 at 404|7. Oyenugu v. Provisional Council of the University of Ife (1965) NMLR”|8. University of Lagos v. Olaniyan (1985) 16 NSCC (Pt.1) 98,113|9. Eronini v. lheuko (1989) 2 NSCC (Pt. 1) 503, 513; (1980) 3 SC (Pt. 1) 30.

STATUTES REFERRED TO

Not Available|

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