CaseLaw
UBN V. Osezuah (1997) CLR 2 (l) (CA)
Brief
Facts
Respondents had applied to the appellant bank for an overdraft facility to be used in the importation of drycleaning machines from the United States. As collateral, the 1st respondent as guarantor of the 2nd respondent, deposited the title deeds of their property.
An irrevocable letters of credit for the overseas suppliers by the bank.
When the equipment arrived Nigeria, some of them were defective while others were not the type originally ordered. Respondents wrote to the bank stop payment. The bank replied that the funds had already been released to the overseas suppliers.
The trial court, having considered the evidence before it, entered for the respondents. Dissatisfied, the appellants appealed to the Court of Appeal.