OTERI V. OKORODUDU & ANOR
August 28, 2025S. A. AUTHORITY V. REGIONAL TAX BOARD
August 28, 2025Legalpedia Citation: (1970) Legalpedia (SC) 17115
In the Supreme Court of Nigeria
Fri Apr 24, 1970
Suit Number: SC 301/1967
CORAM
ADEMOLA, CHIEF JUSTICE NIGERIA
IAN LEWIS, JUSTICE, SUPREME COURT
ATANDA FATAI-WILLIAMS, JUSTICE, SUPREME COURT
PARTIES
JOHN YOUNIS APPELLANTS
RESPONDENTS
AREA(S) OF LAW
SUMMARY OF FACTS
The Appellant (Plaintiff) claimed that against the Respondents (Defendants) the sum of £1,521- 0s-0d being the total amount of loans which he made to the first Respondent The 2nd Respondent was sued as the guarantor of the First Respondent. The Trial Court gave judgment for the plaintiff in respect of the claim against the first defendant but dismissed his claim against the second defendant.
HELD
The Court held that the dismissal of the plaintiffs claim against the 2nd defendant cannot be allowed to stand.
ISSUES
Whether the plaintiffs agreement as set out in the document (exhibit D), to accept a smaller sum in discharge of the larger debt is also ample consideration for the guarantee given by the 2nd defendant.
RATIONES DECIDENDI
WHEN A GUARANTEE TO PAY A DEBT NEED NOT BE UNDER SEAL
“We agree with the learned trial judge that exhibit D is a guarantee to pay the debt of another and must normally be under seal; but if it is supported by valuable consideration, it need not be under seal.” Per ADEMOLA, CJN
“To our mind, a forbearance to sue or to take the principal debtor to court, given at the request of the guarantor, is sufficient consideration for the guarantee.” Per ADEMOLA, CJN
WHEN A GUARANTEE TO PAY A DEBT NEED NOT BE UNDER SEAL
“We agree with the learned trial judge that exhibit D is a guarantee to pay the debt of another and must normally be under seal; but if it is supported by valuable consideration, it need not be under seal.” Per ADEMOLA, CJN
“To our mind, a forbearance to sue or to take the principal debtor to court, given at the request of the guarantor, is sufficient consideration for the guarantee.” Per ADEMOLA, CJN
<foo< p=””></foo<>
CASES CITED
Crears v. Hunter (1887) 19 Q.B.D. 341 at 344
STATUTES REFERRED TO
None
