Respondent sued appellant for N66,000.00 damages for the loss brought about by the increase in the exchange rates and damages for the loss of credit facilities and future prospects put at N3, 500,000.00.

Respondent's stated that it paid N390, 000.00 on 3 June 1993 to the appellant who was to remit the dollar equivalent to the respondent's business associates, Chin Jung Industry Company Limited in Taiwan. The exchange rate then was N32, 50 per USD. A remittance fee of N2, 000 in consideration of the service was paid.

The transfer was to be by telegraphic means which according to the appellant’s manager took four days as the appellant’s headquarters was in Lagos. Upon failure of the respondent to get confirmation of the transfer from its business associate in Taiwan, inquiries were made from the appellant who confirmed that the money was not transferred as agreed because the appellant's head office did not have the dollar equivalent

Respondent collected its money and purchased US$12,000 from the open market at the rate of N38.00 per dollar. The respondent claimed that it suffered a loss of N66,000.

Respondent alleged that failure to effect the transfer of the money had affected its reputation with the Taiwanese associate and it thereby lost credit facilities.

Appellant confirmed that the respondent purchased US$12,00 in the open market but relied on an exclusion clause, which states that "for my account and risk" which it claimed absolves it from liability.

The trial court found for the respondent and awarded the total sum of N3, 566,000 as damages in favour of the respondent as claimed. The appellant was dissatisfied and it appealed to the Court of Appeal.