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SPECIFIC PERFORMANCE DISTINGUISHED FROM DAMAGES

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To sue for specific performance is to assume that a contract is still subsisting and therefore to insist that it should be performed. That will mean that the plaintiff will not want it repudiated unless for any other reason the court was unable to aid him to enforce specific performance of it. He may then fall back for remedy at common law for damages. Specific performance is a discretionary remedy. This does not mean that it will be granted or withheld arbitrarily; the discretion is a judicial discretion and is exercised on well settled principles. It means that in an action for the specific performance of a contract of the class usually enforced, the court may take into account circumstances which could not be taken into account in an action for damages for breach of contract, such as the conduct of the plaintiff, or the hardship which an order for specific performance will inflict on the defendant.

– Ba’Aba JCA. Enejo v. Nasir (2006)

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damages, specific performance

RATIONALE FOR DAMAGES AWARD

The primary object of an award of damages is to compensate the plaintiff for the harm done to him or a possible secondary object is to punish the defendant for his conduct in inflicting that harm. The rationale behind the compensatory theory for the award of damages is found in the maxim restitutio in integrum. In other words, to restore the injured party to the position he or she was in prior to the injury.

– Kekere-Ekun JSC. British v. Atoyebi (2014) – SC.332/2010

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SPECIFIC PERFORMANCE REQUIRES EXACT PERFORMANCE OF A CONTRACT

Specific performance is the remedy of requiring exact performance of a contract in the specific form in which it was made or according to the precise terms agreed upon. It is the actual accomplishment of a contract by a party bound to fulfill it.

— A. Fabiyi, J.S.C. Ibekwe v. Nwosu (2011) – SC.108/2006

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GENERAL VS SPECIAL DAMAGES

It is the law that general damages such as the law will presume to be the natural or probable consequence of the defendant’s act need not be specifically pleaded. It arises by inference of law and need not therefore be proved by evidence and may be averred generally. On the, other hand, special damage is such loss as the law will not presume to be the consequence of the defendant’s act but which depends in part, on the special circumstances of the case. Special damages must be specifically pleaded and strictly proved.

– Kekere-Ekun JSC. British v. Atoyebi (2014) – SC.332/2010

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WHEN APPELLATE COURT WILL INTERFERE IN DAMAGES AWARDED

An award of damages is within the discretionary powers of the court. An appellate court would not usually interfere with a previous award unless satisfied (a) that the trial court acted under a mistake of law; or (b) where the trial court acted in disregard of some principle of law; or (c) where it acted under a misapprehension of facts; or (d) where it has taken into account irrelevant matters or failed to take into account relevant matters; or (e) where injustice would result if the appellate court does not interfere; or (f) where the amount awarded is either ridiculously low or ridiculously high that it must have been a wholly erroneous estimate of the damage.

– Kekere-Ekun JSC. British v. Atoyebi (2014) – SC.332/2010

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ASSESSMENT OF DAMAGES IN BREACH OF CONTRACT

[A]s far back as 1854 in the case of Hadley v. Baxendale (1854) 9 Ex (Ch. 341, where at p. 354 of the Report, Alderson, B. expressed the law as follows: “Now we think the proper rule in such a case as the present is this: Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such a breach of contract should be such as may fairly and reasonably be considered either arising naturally, according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as the probable result of the breach of it.”

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INSTANCES WHEN APPEAL COURT WILL INTERFERE WITH DAMAGES GRANTED BY TRIAL COURT

The appellant’s learned senior counsel had submitted that it had shown reasons for this Court to interfere with the award of damages. An appellate Court does not usually interfere with award of damages unless: (a) the trial Court acted under a mistake of law; or (b) where the trial Court acted in disregard of some principles of law: or (c) where the trial Court acted under misapprehension of facts; or (d) where it has taken into account irrelevant matters or failed to take into account relevant matters; or (e) where injustice would result if the appellate Court does not interfere; or (f) where the amount awarded is ridiculously low or high that it must have been a wholly erroneous estimate of the damages, see SPDCN v. Tiebo VII (supra); Cameroon Airlines v. Otutuizu (supra); British Airways v. Atoyebi (2014) 13 NWLR (Pt. 1424) 253; Agu v. General Oil Ltd. (2015) 17 NWLR (Pt. 1488) 327.

— O.F. Ogbuinya JCA. Stanbic IBTC Bank Plc v. Longterm Global Cap. Ltd. & Ors. (September 20 2021, ca/l/1093/2017)

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