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HOW TO ARRIVE AT RATE OF INTEREST IN COMMERCIAL CASES

Dictum

In TATE and LYLE FOOD AND DISTRIBUTION LTD. V. GREATER LONDON CONOI AND ANOTHER. 1981 3 All E.R. 716 Forbes J on how to arrive at the rate of interest in Commercial cases held that one must not look at the profit which the Defendant wrongfully made out of the money he withheld but at the cost to the plaintiff of being deprived of the money which he should have had. In my view interest in commercial cases of this nature is not awarded against the Defendant as a punitive measure for having kept the plaintiff out of his money but as an attempt to achieve restitution in intergrum.

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REVERSIONARY INTEREST CANNOT BE SOLD WHEN ANOTHER IS IN POSSESSION

It appears to me to be the law that a reversioner, such as the 2nd respondent, cannot sell his reversionary interest, that is his particular estate, as fee simple while another person is in possession of the land. He must first either first recover possession from that other person in possession or sell his reversionary...

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INTEREST IS NOT PAYABLE ON ORDINARY DEBT

Ordinarily, interest is not payable on ordinary debt in purely commercial transaction, in the absence of a term to that effect expressly or impliedly in the contract or mercantile usage or custom of the parties or as may be contained in a statute. It may also be in place through fiduciary relationship between the parties....

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CHANGE IN THE RATE OF INTEREST MUST BE COMMUNICATED

Any change in the rate of interest should be brought to the attention of the customer by the banker as a condition for the banker to change the agreed rate of interest. [Okolo v. U.B.N.Ltd (1998) 2 NWLR (Pt. 539) 618 referred to] – L.A. Ayanlere v. Federal Mortgage Bank of Nig. Ltd. (1998) –...

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EVEN WHERE INTEREST IS NOT CLAIMED, COURT MAY AWARD INTEREST

It has been held in effect “that in purely commercial transactions a party who holds on to the money of another and keeps it for a long time without any justification and thus deprives that other of the use of funds for the period should be liable to pay compensation by way of interests.” See;...

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SUPREME COURT JUDICIAL NOTICE ON INTEREST RATE

The matter is not made easy by their claiming that they agreed on the interest rate of 13% when there was no such clause in the deed of legal mortgage and when it is a well-known fact which this court takes judicial notice of that interest rates are dependent of the policy on the Central...

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INTEREST WILL BE AWARDED WHERE PROVED EVEN IF NOT CLAIMED

In fact, where interest is not even claimed on the Writ, but the facts are pleaded as did the Appellant in its amended Statement of Claim and evidence was given which showed entitlement thereto, the Court may award interest as a general rule. See EKWUNIFE V. WAYNE (W/A) LTD (1989) 5 NWLR (PT.122) 428. —...

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