The respondent offered to supply 10,000 metric tones of rice to the Presidential Task Force on Rice (PTFR) at US $730.00 per tonne on "liner terms".

If there was delay at the port of discharge the loss occasioned by the delay in discharge would be borne by the chatterer or the owner of the cargo would be responsible.

The offer was accepted by the respondent. But by a letter dated 28th June 1982 the secretary of the PTFR wrote to the appellant varying the purchase price from US.$730.00 to US$590.00 per metric tonne.

Another proforma was issued by Respondent at the renegotiated price of US$590 per tonne. Based on the renegotiated price, appellant applied for foreign exchange to purchase the rice, the import licence and bills of lading were in the name of the appellant who also paid the clearing agent and paid the respondent the purchase price.

The consignment of rice was shipped to Lagos in five ships which were delayed beyond the normal period of discharge. The charter company paid the sum with interest was calculated at US$237,921.51 which the respondent now sued the appellant for with interest at 13% per annum from 1st October 1986 till judgment and thereafter at 6% till payment.