1st respondent had entered into an agreement to sell his uncompleted house to the appellant at N50,000. The property was then subject of mortgage to the 2nd respondent for a loan, which the 2nd respondent granted to the 1st respondent.

N13,483.26K was due to the bank on the loan for which the property was mortgaged to the bank. It had been agreed that the appellant should pay N30,000 to the 1st respondent and the balance of N20,000 would be paid upon the 1st respondent redeeming the mortgage with the 2nd respondent bank. The 1st respondent would then execute the necessary papers in favour of the appellant with which he could apply to the Governor for the certificate of occupancy in respect of the land.

The appellant duly paid N30,000 and was let into possession. He then proceeded to complete work on the building. The trial court relying on the provisions of sections 22 and 26 of the Land Use Act held that the transaction between the parties was illegal, null and void and dismissed the appellants action for specific performance of the contract or in the alternative reimbursement of his expenses including the N30,000.00 paid to the 1st respondents. The appellant being dissatisfied appealed to the court of appeal.