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COURT DOES NOT CONDUCT BARGAIN FOR PARTIES

Dictum

The appellant having failed to name a price for his ‘injury’ as a solatium, he cannot expect from the court, unsolicited, any succour as the business of this court or of any court for that matter does not include conducting bargain on behalf of any party.

– Olagunju JCA. Ofodile v. COP (2000)

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WHEN INTERPRETING A CONTRACTUAL DOCUMENT THE WHOLE DOCUMENT SHOULD BE TAKEN CONSIDERATION OF

I am in full support of the submission of appellant’s counsel that it was a misdirection for the lower court in consideration of whether the land, the subject matter in controversy, was bare land or included the structures thereon to have relied on only clauses 3 and 6 in the entire lease agreement to arrive at its conclusion. The learned Justices of the lower court were clearly in error because it is a fundamental rule of construction of instruments that its several clauses, must be interpreted harmoniously so that the various parts of the instrument are not brought in conflict to their natural meaning. Emphasising the same point, the learned authors of Halsbury’s Laws of England. Vo1.12, (4th ed.) para. 1469) stated tersely but pointedly: “The best construction of deeds is to make one part of the deed expound the other, and so make all the parts agree. Effect must, so far as possible, be given to every word and every clause.” The same principle was approved by this Court in Lamikoro Ojokolobo & Ors. v. Lapade Alamu & Anor. (1987) 7 SCNJ 98, (1987) 3 NWLR (pt.61) 339. Surely, a fragmentary interpretation of the various clause of the lease agreement without recourse to the entire Lease Agreement would do violence to the content in which the controversial terms “premises” and “land” were employed and therefore the ascertainment of the parties’ intention in relation to these two terms was bound to be distorted and erroneous and consequently unacceptable.

— Achike, JSC. Unilife v. Adeshigbin (2001) 4 NWLR (Pt.704) 609

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WHERE CONTRACTUAL NEW TERM CAN BE INTRODUCED

Where parties enter into an agreement and subsequently decide to introduce new terms, they can only do so by specific reference to the earlier agreement to the effect that the later agreement has introduced new terms thereof.

– Niki Tobi JSC. Yaro v. Arewa CL (2007)

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TO DETERMINE RIGHTS IN A CONTRACT, COURT MUST RESPECT CONTRACT MADE BY PARTIES

The position of the law is that in determining the rights and obligations of parties to a contract, the court must respect the sanctity of the contract made by them. They are bound by the terms thereof and the court will not allow any extraneous term to be read into it. See Adams O. Idufueko v Pfizer Products Limited & Anor. (2014) LPELR-22999 (SC).

— Adewemimo J. Afariogun v FUTA (2020) – NICN/AK/41/2017

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WHEN A CONTRACT IS VOID AB INITIO

The position of the law is that where a statute declares a contract or transaction between parties not only void but also imposes a penalty for violation, that contract or transaction is illegal ab initio. However where the legal sanction is merely to prevent abuse or fraud and no penalty is imposed for the violation of the provision of the statute, the violation is merely voidable and not illegal. See Solanke v. Abed (supra); Oil-field Supply Centre Ltd. v. Johnson (1987) 2 N.W.L.R. (Pt. 58) 265 and Ibrahim v. Osim (1988) 3 N.W.L.R. (Pt. 82) 257 and Pan Bishbilder (Nigeria) Ltd. v. First Bank of Nigeria Ltd (2000) 1 N.W.L.R. (Pt. 642) 684 at 693 where Achike JSC (of blessed memory) clearly stated the position of the law:- “Permit me to digress generally on illegality. It is common ground that illegality and voidness of the loan contract between the parties is the main subject matter of controversy in this appeal. Definition of the term illegal contract has been elusive. The production of clarity of the classification of illegality appears to be almost confounded and rendered intractable primarily because – writers and the Judges have continued to use the terms ‘void’ and ‘illegal’ interchangeably. Halsbury’s Laws of England (3rd ed. vol. 8 p. 126 para. 218) states that – ‘A contract is illegal where the subject matter of the promise is illegal or where the consideration or any part of it is illegal.’ Without getting unduly enmeshed in the controversy regarding the definition or classification of that term, it will be enough to say that contracts which are prohibited by statute or at common law, coupled with provisions for sanction (such as fine or imprisonment) in the event of its contravention are said to be illegal. There is however the need to make a distinction between contracts that are merely declared void and those declared illegal. For instance, if the provisions of the law require certain formalities to be performed as conditions precedent for the validity of the transaction without however imposing any penalty for non-compliance, the result of failure to comply with the formalities merely renders the transaction void, but if a penalty is imposed, the transaction is not only void but illegal, unless the circumstances are such that the provisions of the statute stipulate otherwise. See Solanke v. Abed & Anor. (1962) N.R.N .L.R. 92, (1962) 1 S.C.N.L.R. 371 and P. Kasumu & Ors. v. Baba-Egbe 14 WACA 444.”

— Mohammed, JSC. Fasel v NPA (2009) – SC.88/2003

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THE ILLEGAL PART OF A CONTRACT CAN BE SEVERED FROM THE OTHER LEGAL PART

This is because it is a recognized principle of law that a contract will rarely be totally illegal or void: certain parts may be entirely lawful in themselves, while others are valid. Where the illegal or void parts can be “severed” from the rest of the contract on the well-known principles of severance such will be done and the rest of the contract enforced without the void part. It is permissible for courts to adopt this course where the objectionable part of the contract involves merely a void step or promise and is not fundamental, and it is possible to simply strike down the offending part without re-writing or remaking the contract for the parties and without altering the scope and intention of the agreement; and lastly, the contract, shorn of the offending parts, retains the characteristics of a valid contract. See on these Vol. 9 Hals. Laws of England (4th Edn.) p.297 in paragraph 430. See also Commercial Plastics Ltd. v. Vincent (1964) 3 All E.R. 546, C.A.

— Nnaemeka-Agu, JSC. Adesanya v Otuewu (1993) – SC.217/1989

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SEVERAL PERSONS – ONLY THOSE WHO ENTER CONTRACT ARE LIABLE

In the case of Chief Olowofoyeku v. The Attorney-General of Oyo State (1990) 2 NWLR (Pt. 132) 369, cited by learned Senior Advocate for the appellants, the Court of Appeal correctly held that where an agreement is intended to be made by several persons jointly, if any of those persons failed to enter into the agreement, there is no contract, and liability is incurred by such of them as have entered into the agreement.

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