CaseLaw
UBN. Ltd V. Ayoola (1998) CLR 10(d) (CA)
Brief
Facts
In 1981, the appellant herein granted overdraft facilities of N28,000.00 to the respondent with interest of 111/2% per annum, but according to the appellant with a right to review the rate of interest. The transaction between the parties was in writing vide Exhibit 1.
As at December, 1988, the outstanding debt balance on the overdraft account of the respondent was N73, 147.33, which the respondent failed to pay despite various demands.
For his part, the respondent conceded that overdraft facilities of N28, 000.00 was granted to him and he enjoyed the facilities at the interest rate of 111/2% per annum by oral agreement between the parties. The respondent denied there was a written agreement, (Exhibit 1.).
He contended that by the oral agreement, the interest rate fixed at 111/2% per annum is fixed and unchangeable. That he did not sign Exhibit 1, which gave the appellant, the right to vary the interest rate.
The appellant went to court and issued out a writ against the respondent.
Issues
Whether the appellant bank had the right to vary the rate of interest higher...