Alhaji Aminu Ibrahim V. Mr. Felix Osim (1988)

LawGlobal-Hub Lead Judgment Report

L. UWAIS, J.S.C. 

In this case the respondent took out a writ of summons in the High Court of Lagos State claiming, as per his statement of claim, against the appellant as follows-

“(1) The sum of N106,400.00 due, owing and payable to the plaintiff as his entitlement of the net profit of the import business transaction pursuant to a contract entered into between the plaintiff and the defendant on Friday the 28th day of December, 1984.

(2) The sum of N393,600.00 being general damages for breach of the said contract by the defendant, on the facts above stated.”

The facts which led to the institution of the suit are as follows. On the 22nd of October. 1984, the respondent was issued a licence which permitted him to import sardine worth N100,000.00. At the time of the issuance of the import licence, the respondent lacked the money with which to buy the sardine abroad. He therefore thought of approaching his friends and business colleagues for financial assistance to facilitate the importation of the sardine.

The respondent was introduced to the appellant by one of the respondent’s friends. There was a discussion between the respondent and the appellant from which a negotiation ensued and the parties reached an agreement that the appellant would wholly finance the importation of the sardine using the import licence issued to the respondent. The terms of the agreement reached were put in writing in a letter dated the 29th December, 1984 which the respondent wrote to the appellant. The terms have been specifically pleaded in paragraph 8 of the respondent’s statement of claim and they are –

“(1) That the defendant should finance the importation of sardines by the licence No. 84/P009878 lawfully belonging to the plaintiff;

(2) That the profit of the transaction would be shared exclusively between the plaintiff and the defendant as follows-

(i) 5% first to the defendant as out of pocket expenses.

(ii) The remainder of the profit to be shared equally between the plaintiff and the defendant.

(3) That there would be no third party interference.

(4) That the defendant would use any bank of his choice in Lagos to execute the transaction.

(5) That the defendant would keep the plaintiff duly informed of the progress and course of the transaction.”

According to the averments made in the statement of claim, the appellant breached all the terms of the agreement. The appellant opened a letter of credit, for the purchase of the sardine abroad, with a bank in Kano instead of Lagos. The sardine was brought in 4,400 cartons to Nigeria in a ship. Although the respondent was notified by the appellant of the ship’s arrival and was asked to look for buyers, the sardine was secretly sold by the appellant without the knowledge of the respondent.