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CaseLaw

Delta Steel (Nig) Ltd. V. American Computer Tech. Inc. (1999) CLR 3(hh) (CA)

Brief

  • Agency
  • Acts of directors & managers of company
  • Breach of contract
  • Offer
  • Award of costs

Facts

This is an appeal against the judgment of the high Court of Lagos State at Ikeja Judicial Division delivered on the 19th of November, 1993 in suit No. ID/1713/90.

The respondent who was the plaintiff in the court below sued the appellant (who was the 4th defendant in the court below) along with three others initially claiming the following reliefs:

  • 1
    The sum of US $166.580 (one hundred and sixty-six thousand five hundred and eighthly United States Dollars) being the balance of the price of 5 (five) computer equipment delivered to the defendant by the plaintiff at the defendants' request but which the defendants have refused ad still refused to pay despite repeated demands.
  • 2
    The sum of US $50,000 being the amount of legal expenses incurred by the plaintiff as a direct result of the failure of the defendants to honour their agreement with the plaintiff.
  • 3
    Interest on the said sums at the rate of 28% till whole of the judgment debt and costs is liquidated.

Pleadings duly amended by both sides with the leave of the court were filed and exchanged by parties. It must be observed that even though the 1st and 2nd defendants were served with the amended pleadings of the plaintiff/respondent and the 4th defendant/appellant both of them did not file any defence neither did they defendant the action. After taking evidence on both sides and upon the addresses of their respective counsel, the learned trial Judge in a considered judgment ordered the 1st, 2nd and 4th defendants (Ms. Elizabeth Turugh, Libram International Limited) to pay to the plaintiff the sum of US $136.580 as balance of the price of the goods so supplied; they were also ordered to pay the sum of US $50,000 as legal expense incurred by the plaintiff. In addition, they were also ordered to pay 28% interest rate per annum on the said sum of US $186,580 from 1st July, 1990 till 19th November, 1993, the date of the judgment appealed against. Contained in the said judgment is the order that the said defendants shall pay interest of 4% per annum on the said sum from 19th November, 1993. The cost of N25, 000.00 was awarded against the 1st, 2nd and 4th defendants jointly and severally. Suffice it to say that the judgment is jointly and severally. The case against the 3rd defendant – Messrs D.P.I. Nigeria Limited - had earlier been withdrawn thus leaving three defendants to defend the case.

At the end of the trial, the High Court gave judgment in favour of the respondent and granted its claims. It also awarded the sum of N25, 000 against the appellant as cost.

Dissatisfied with the judgment of the trial court, the appellant appealed to the Court of Appeal.

Issues

  • 1
    Is there a contract for the supply of computers between the respondent...
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