n Compulaw - 1st Indigenous Digital Law Library
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CaseLaw

Olaniyonu V. British-American Ins Co. (1974) CLR 1(h) (SC)

Judgement delivered on January 25th 1974

Brief

  • Contract of service
  • Novation of terms of contract
  • Wrongful dismissal
  • Service agreement

Facts

The plaintiff brought a claim was for special and general damages in an action for wrongful dismissal. Provision was made for a week’s notice of termi¬nation by either side in the service agreement.

The plaintiff was originally employed as a salesman and later promoted to the post of Staff Manager. He was previously paid weekly based on sales. This was altered to a weekly basic wage in addition to commission payable at the end of each fiscal year.

The question was as to whether this alteration amounted to a novation of the terms of his ser¬vice agreement. The High Court dismissed the claim but the Western State Court of Appeal set aside the judgment of the High Court and held that the dismissal was wrongful.

Issues

  • Whether the change in method of paying wages to a servant on promotion...
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