Plaintiff agreed to buy a Fokker plane for 2,250000.00 (Deutche Mark). Plaintiffs issued instructions for a letter of credit to be opened in favour of the seller by the defendant bank. B.H.F Bank was the corresponding Bank.

The letter of credit stipulated that “covering dispatch latest 30 June 1975 of one Aircraft Fokker F. 27A, Sesial number No. 108… from any German Airport to Benin City Airport, Nigeria” and that “this credit is valid in west German until 15th July 1975”> on the back was an endorsement that “On presentation of document in strict conformity with letter of credit, you must claim on us by tested cable”.

The Aircraft did not arrive as the seller had none to sell. He nevertheless presented documents which were not in strict conformity with letters of credit and was paid by the correspondent bank on the last day that the credit was valid in Germany.

The plaintiffs in February 1978 filed an action for damages; for fraudulent misrepresentation, breach and decision of contract. Trial court found for the plaintiffs and the Defendants appealed to the Court of Appeal which allowed the appeal. There was a further appeal to the supreme court.