MEANING OF THE TERM ‘CONTRACT’

AWARD OF DAMAGES FOLLOWS BREACH OF CONTRACT

An award of damages usually follows a breach of contract so as to compensate the injured party for loss following naturally and within the contemplation of the parties. Damages is attached to a breach following an enforceable contract. Where there was no such contract an award of damages by any Court is not only a misconception but a contradiction in terms as such award is based on a wrong principle of law. This court has a duty not to allow such an award to stand.

— Adekeye, JSC. Best Ltd. v. Blackwood Hodge (2011) – SC

NATURE OF A BREACH OF CONTRACT

It is clear to me that a contract between parties may be discharged by breach of a fundamental term by any of the parties. There is no gain-saying the point that a breach of contract is committed when a party to the contract without lawful excuse fails, neglects or refuses to perform an obligation he undertook in the contract or incapacitates himself from performing same or in a way back down from carrying out a material term. See: Adeoti & Anr. v. Ayofinde & Anr. (2001) 6 NWLR (Pt.709) 336 … Where a party to a contract is in breach of a material term of same, the breach gives the aggrieved party a lee-way or an excuse for non-performance of its own side of the bargain. Such a party is at liberty to treat the contract as extinguished or at an end. See: Yadis (Nig.) Ltd. v. G.N.I.C. Ltd. (2007) 14 NWLR (Pt.1055) 584 at 609.

— Fabiyi, JSC. Best Ltd. v. Blackwood Hodge (2011) – SC

COURTS DO NOT MAKE CONTRACT FOR THE PARTIES

It is not the function of the court to make contracts between the parties. The courts duty is to construe the surrounding circumstances including written or oral statements so as attest the intention of the parties. Where the correspondence exchanged between the parties are read together, it can be assumed that the parties have come to an agreement.

– Adekeye JSC. Nwaolisah v. Nwabufoh (2011)

TERMINATION OF CONTRACT OF SERVICE BRINGS TO AN END MASTER-SERVANT RELATIONSHIP

Chukuma v. Shell Petroleum Development Company (1993) 4 NWLR (Pt. 289) 512 at 560 where Karibi-Whyte JSC said: “In the ordinary case and following the common law principle,termination of a contract of service even if unlawful brings to an end the relationship of master and servant, employer and employee. This rule is based on the principle of the confidential relationship between master and servant which cannot continue in the absence of mutuality.”