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Method of expression of Consideration in Contract The way in which consideration for a contractual obligation is expressed is not conclusive, but it is relevant in construing the terms of the contract itself NATIONAL BANK OF NIGERIA LIMITED v. AWOLESI (1964) NCLR (page 26, lines 20-23) P.C. (West) Related aspect of Law: Consideration in Contract…
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Banking – Guarantee – Effect of substantial modification If, in a contract guaranteeing an overdraft with a bank, the principal debtor opens a second account without the guarantor’s knowledge and, on construction of the contract, this amounts to a substantial variation of that contract prejudicial to the guarantor, the effect is to discharge the guarantee…
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Banking Guarantee (second account and modification of contract) – Court Holding If, in a contract guaranteeing an overdraft with a bank, the principal debtor is permitted to open a second account, this will not necessarily amount to a substantial variation of the contract prejudicial to the guarantor if the contract is a continuing guarantee of…
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Banker’s liability to Customer on Suggested Sufficient Fund – Court Holding Where a banker refuses payment of a cheque which the customer has not stopped, but to meet which there are not sufficient funds of the customer’s available, and by his answer on the cheque the banker suggests that there are sufficient funds but the…
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Interpretation of a Banker’s answer on dishonoured cheque – Court Holding In interpreting a banker’s answer on a cheque of which he has refused payment, the test is not what the words might convey to a particular class of persons, but what they would ordinarily suggest to the mind of every person of average intelligence…
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Meaning of ‘Payment Countermand’ on Cheque – Court Holding The words “payment countermanded” in a banker’s answer on a cheque of which he has refused payment mean that the customer has sufficient funds available to meet the cheque but has countermanded payment ADENIILUYI v. AFRICAN CONT. BANK LTD. (1964) NCLR (page 19, lines 31-39) H.C.…
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What constitutes a banker’s customer A person whose money has been accepted by a banker on the footing that the banker undertakes to honour cheques up to the amount standing to that person’s credit is a customer of the banker, and the position is unaffected by the banker’s belief that the account is held in…
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Banker must honour Customer’s draft on customer’s money in his hands – COURT HOLDING A banker must recognise the person from whom or for whose account he has received the money in an account as the proper person to draw on it, and cannot set up the claim of a third person as against that…
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Duration of the appointment of a University Professor – COURT HOLDING In accordance with the practice of universities, the appointment of a professor is until retirement and is not subject to confirmation after an initial probationary period Oyenuga and Four Others v. Ife University Provisional Council (1964) NCLR (page 7, lines 27-31) H.C. (West) Related…
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Interpretation of Documents and Intention – COURT HOLDING The cardinal presumption in the interpretation of documents is that the parties have intended what they have in fact said Oyenuga and Four Others v. Ife University Provisional Council (1964) NCLR (page 8, lines 18-25) H.C. (West) Related aspect of Law: Contract Facts of the Case The…