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Engaging with Qualifying Principles in Nigerian Contract Law

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More Constitutional Dimensions of Contract Law

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Abstract

The principles of Contract law are among the oldest firmly established principles of law across legal systems generally. This is no different in Nigerian Contract law which is substantively based on longstanding common law principles. Over time, however, the claims of various normative paradigms have contributed to the reshaping, in some respects, of the formal body of law recognised as the law of contract. These influential paradigms include employment rights ethos, the imperative of consumer protection and the pluralism presented by the prior claims of customary law. These, rather than the Constitution simpliciter, are among the key agents that influence, inform, define and redefine the direction of legal development. This chapter specifically discusses a number of considerations that have been introduced to Contract law principles in Nigeria in ways that qualify the operation of these principles. These developments are identified in public service employment, consumer protection and customary law. Although the common law foundation of formal Nigerian Contract law remains intact, it is interesting, instructive and important to note how the superstructure may have altered over time in response to these agents of change. This exploration is what this chapter undertakes.

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Notes

  1. 1.

    Ezike (2015), p. 4, discusses the bindingness and freedom of contract and cites cases in which this position has been recently reinforced to include SAIC Ltd v Ministry of Finance Inc [2014] 10 NWLR (Pt 1416) 515 and Golden Construction Co Ltd v Stateco (Nig) Ltd [2014] 8 NWLR (Pt 1408) 171.

  2. 2.

    Okonkwo (2000), pp. 1–2.

  3. 3.

    Ibid. at 3.

  4. 4.

    Okonkwo (2000), pp. 3–6.

  5. 5.

    See Section 12(1), 1999 Constitution of the Federal Republic of Nigeria, Lagos, Nigeria: Federal Government Press.

  6. 6.

    Okeke (2015) cites Ibidapo v Lufthansa Airlines (1997) 4 NWLR (Pt 498) 124 and Ogugu v the State (1994) 9 NWLR (Pt 366) as examples of the former and Agbakoba v Director State Security Services (1994) 6 NWLR (Pts 351) as an example of the latter.

  7. 7.

    See for example Monye (2006), pp. 2–4; See also the preface to Ezejiofor (1997), p. v.

  8. 8.

    See Ordor (2014).

  9. 9.

    Nwabueze (1982), p. 34, observes that prior to this time, governance was done by letters patent and orders-in-council.

  10. 10.

    Nigeria’s constitutional development is discussed extensively in Nwabueze (1982), ch 2.

  11. 11.

    Alfotrin v Attorney General of the Federation (1996) NWLR (Pt. 475) 634; SAIC Ltd v Ministry of Finance Inc [2014] 10 NWLR (Pt 1416) 515.

  12. 12.

    See Ezike (2015). Section 42(1) and (2) of the Constitution of the Federal Republic of Nigeria 1999 provides for the right to freedom from discrimination on grounds of membership of a particular community, ethnic group, place of origin, sex, religion, political opinion or circumstances of birth.

  13. 13.

    Nwabueze (1982), pp. 116–117.

  14. 14.

    Chapter 2 of the 1999 Constitution sets out fundamental objectives and directive principles of state policy which include national ethics, duties of citizens, obligation of the mass media, cultural directives, as well as political, economic, social, educational, foreign policy and environmental objectives.

  15. 15.

    See for instance the 2010 case Socio-Economic Rights and Accountability Project (SERAP) v Federal Republic of Nigeria and Universal Basic Education Commission ECW/CCJ/JUD/07/10, Available via https://www.escr-net.org/sites/default/files/SERAP_v_Nigeria.pdf. Accessed 26 Sept 2018.

  16. 16.

    Ezejiofor (1997), p. 22, acknowledges this when he makes reference to the popularity of customary law arbitration, which is characteristically oral in nature.

  17. 17.

    See BFI Group Corporation v Bureau of Public Enterprises [2012] 18 NWLR (Pt 1332) 209.

  18. 18.

    See for example, Ezike (2015), chs 1, 20, 22 and 23.

  19. 19.

    Agomo (1997), p. 95; Adeogun (1969, 1986).

  20. 20.

    Chukwuma v Shell Petroleum Development Co. of Nigeria Ltd (1993) 4 NWLR 512; Daniels v Shell B.P Petroleum Development Co. (1962) 1 All NLR 19; Ahuruonye v University College Hospital Ibadan (1959) W.N.L.R 232; Obo v Commissioner of Education, Bendel State and Anor (2001) 9 WRN 1; Fakuade v Obafemi Awolowo University Teaching Hospital Complex Management Board (1992) 5 NWLR 47.

  21. 21.

    This was reinforced in Unilife Development Company Ltd v. Adeshigbin (2001) 2 SC 43.

  22. 22.

    Chief A.N. Onyiuke III v. G.F. Okeke (Unreported) Supreme Court of Nigeria, Suit No: SC/430/74 delivered on 5th May 1976.

  23. 23.

    Reiterated in the Arbitral Award in Sapphire v. National Iranian Company (1963), I.L.R 1967, 136 at 181. Delivered 15 Mar 1967.

  24. 24.

    Brian (2007), p. 8.

  25. 25.

    (1996) NWLR (Pt. 475) 634.

  26. 26.

    Above note 11.

  27. 27.

    Cooperative Development Bank Plc v Arc. Mfon Ekanem (2009) 16 NWLR (Pt. 1168) 585; Shell Petroleum Development Company of Nigeria Limited v Monday Amadi (CA) (2010) 13 NWLR (Pt. 1210) 83; Aprofim Engineering Ltd v Bigouret and Anor (2015) 52 N.L.L.R (Pt.173)1 CA. See also Yekini and Anjorin (2015).

  28. 28.

    Chapter L1, Laws of the Federation of Nigeria 2004 (“Labour Act”).

  29. 29.

    2010 No 13 A 1281.

  30. 30.

    2005 Laws of the Federation of Nigeria 1999.

  31. 31.

    CAP T8 Laws of the Federation of Nigeria 2004.

  32. 32.

    Cap. F1 Laws of the Federation of Nigeria 2004.

  33. 33.

    The Constitution of the Federal Republic of Nigeria 1999.

  34. 34.

    Public Service Rules 2008 Edition Gazette No. 57, Vol. 96, 2009 Available via https://www.nama.gov.ng/PublicServiceRules.pdf.

  35. 35.

    P 4 Laws of the Federation of Nigeria 2004.

  36. 36.

    (1896) QB 116.

  37. 37.

    (1895) AC 229.

  38. 38.

    Akpan (2000).

  39. 39.

    Per Lord Reid in Ridge v Baldwin (1964) AC 40 at 65–66.

  40. 40.

    (1963) LLR 65.

  41. 41.

    Unreported PHC/38/1972.

  42. 42.

    (1985) 2 NWLR (Pt 9) 599.

  43. 43.

    Akpan (2000), p. 259.

  44. 44.

    Olaniyan & 2 ors v University of Lagos & Anor (1985) 2 NWLR 599; Essien v University of Calabar (1990) 1 AK-CRJ 26; University of Calabar v Inyang (1993) 5NWLR (pt 291) 100; Adeniyi v Governing Council, Yaba College of Technology (1993) 6 NWLR Pt 300, p. 428.

  45. 45.

    Olatunbosun v Nigerian Institute of Social and Economic Research Council (1988) 3 NWLR (Pt 80) p. 26.

  46. 46.

    Osumah v Edo State Broadcasting Service (2005) All FWLR Pt 253, 773.

  47. 47.

    Federal Civil Service Commission and Ors v J.L Laoye (1989) 2 NWLR (Part 106) 632.

  48. 48.

    Section 2 Consumer Protection Council Act 1992 Cap C25 Laws of the Federation of Nigeria 2004.

  49. 49.

    Section 32.

  50. 50.

    Section 32.

  51. 51.

    Section 2 (a).

  52. 52.

    Section 8.

  53. 53.

    Sections 9–12.

  54. 54.

    The Nigerian Communications Commission was established by the Nigerian Communications Act 19 of 2003 which repealed the Nigerian Communications Commission Act 1992.

  55. 55.

    Section 3 of the Nigerian Electricity Regulation Commission Consumer Complaint Handling: Standards and Procedures.

  56. 56.

    Approved by the Bankers’ Committee and issued by the Chartered Institute of Bankers.

  57. 57.

    Section 3 Code of Conduct in the Nigerian Banking Industry (Professional Code of Conduct and Business Ethics).

  58. 58.

    Article 3.6 Code of Conduct in the Nigerian Banking Industry (Professional Code of Ethics & Business Conduct).

  59. 59.

    Paragraph 2, Preamble to the Central Bank of Nigeria Consumer Protection Framework (The Framework), issued on 7 November 2016.

  60. 60.

    Articles 2.1–2.9 Central Bank of Nigeria Consumer Protection Framework. These principles are: 1. Legal, regulatory and supervisory structures; 2. Responsible business conduct; 3. Disclosure and transparency; 4. Consumer financial education; 5. Fair treatment; 6. Protection of consumer assets, data and privacy; 7. Complaints handling and redress; 8. Competition; and 9. Enforcement.

  61. 61.

    Article 2.7 The Consumer Protection Framework, the Central Bank of Nigeria. 7 November 2016.

  62. 62.

    Nigerian Communications Commission Dispute Resolution Guidelines issued in September 2004. This document is currently being revised. Explanatory notes in the guidelines referred to small claims as disputes involving sums not in excess of one million naira.

  63. 63.

    The Sale of Goods Act is an English statute of general application which apples in most parts of Nigeria, with its derivative, the Sale of Goods Law 1958, applying in the western part of the country.

  64. 64.

    Sale of Goods Act, sections 14(2), 14(1) and 13 respectively.

  65. 65.

    Sale of Goods Act section 62.

  66. 66.

    In relation to the Sale of Goods Act, the cause of action can only be in respect of the sale of goods and not services.

  67. 67.

    LD/13/2008—Fijabi Adebo Holdings Ltd & Anor vs. Nigeria Bottling Company PLC, Judgment of Oyebanji J., High Court of Lagos State, Nigeria.

  68. 68.

    CAP N1 Laws of the Federation of Nigeria 2004.

  69. 69.

    NBC Plc. v. Okwejiminor & Anor (1998) 8 NWLR 295; Nathaniel Ebelamu vs. Guinness Nig. Plc (1983) 1 FNLR 42; Boardman v Guinness (Nig) Ltd (1980) NCLR 109.

  70. 70.

    Sagay (2009).

  71. 71.

    Ben-Shahar (2008).

  72. 72.

    Ezejiofor (1997), p. 33.

  73. 73.

    Sagay (2009), p. 73.

  74. 74.

    Mary (1999), pp. 8–9.

  75. 75.

    Elias (1956) pp. 212–272; David and Brierly (1985), pp. 547–563.

  76. 76.

    Akanbi (2007), p. 462.

  77. 77.

    Silungwe (1988), p. 79.

  78. 78.

    Nwocha (2016), p. 441.

  79. 79.

    (2010) 41 NSCQR 955.

  80. 80.

    This reiterates the position of the law earlier stated in an assortment of cases, including Njoku v Ekeocha & Anor (1972) 2 ECSLR 199; Mgbagbu v Agochukwu (1993) 3 ECSLR (Pt.) 90; Ofomata v Anoka (1974) 4 ECSLR 251; Ojibah (1991) 22 NSCC (Pt. 2) 130; Ohiaeri v Akabeze (1992) 23 NCC (Pt. 1) 139; Nkado v Obiano (1993) 4 NWLR 6; Igbokwe v Nlemchi (1996) 2 NWLR (Pt. 429) 185.

  81. 81.

    Ibidapo-Obe (2005), p. 52.

  82. 82.

    Adigun (1991).

  83. 83.

    Ibid. at 52; See also Amodu Tijani v Secretary, Southern Nigeria (1921) A.C. 399; Otugbola v Okeluwa (1981) 6–7 S.C 99; Chukwueke v Nwankwo (1985) 2 W.L.R. 195.

  84. 84.

    Sections 36 and 37 Land Use Act 1978.

  85. 85.

    Sections 1 and 22, Land Use Act 1978.

  86. 86.

    Oluyede (1989).

  87. 87.

    Or customary right of occupancy, also known as deemed right of occupancy, in respect of land in rural areas.

  88. 88.

    Ilegbune (1978), Banire (1988), Olawoyin (1974) and Emiola (1977).

  89. 89.

    Ibidapo-Obe (2005), p. 53.

  90. 90.

    Obioha (2008).

  91. 91.

    Imah v. Okegbe (1993) 12 SCNJ 57.

  92. 92.

    Abraham v. Olorunfunmi (1991) 1 NWLR (Pt. 165) 53.

  93. 93.

    Adesanya v. Aderonmu (2000) FWLR (Pt. 15) 2492.

  94. 94.

    Ordor and Oniekoro (2011), p. 260. See also Ekpendu v. Erika (1959) 4 FSC 79; Adewuyin v. Ishola (1958) WRNLR 110; Okonkwo v. Okonkwo (1998) 10 NWLR (Pt. 571) 35.

  95. 95.

    Ordor and Oniekoro (2011), p. 265.

  96. 96.

    Johnson notes that iwofa has no English equivalent. See Johnson (2010), pp. 1–39; See also Adeniyi (1985); IWOFA: The Stubborn Afrikan available at https://thestubbornafrikan.wordpress.com/tag/iwofa/ accessed on 19 May 2018.

  97. 97.

    Ajibola (1982). See also James and Kasunmu (1966).

  98. 98.

    Ibid.

  99. 99.

    W.R.N.L.R 1955–1956, 167.

  100. 100.

    1957 W.R.N.L.R 55.

  101. 101.

    Ezike v Egbuaba (2008) 11 NWLR (Pt 1099) 627.

  102. 102.

    (2007) 4 NWLR (Pt 1024) 285.

  103. 103.

    See Idehen v Idehen (1991) 6 NWLR (Pt 198) 382; Lawal-Osula v Lawal-Osula (1993) 2 NWLR (Pt 274) 148.

  104. 104.

    (1991) 6 NWLR (Pt 198) 382.

  105. 105.

    Section 3(1) of the Wills Law of Western Nigeria applicable in the old Bendel State.

  106. 106.

    See Ordor and Oniekoro (2011), p. 261.

  107. 107.

    Ekpendu v Erika (1959) 4 FSC 79; Coker v Oguntola (1985) 2 NWLR [Pt 5]; Adeleke v Iyanda (2001) 13 NWLR [Pt 729] 1.

  108. 108.

    Okonkwo v Okonkwo (1998) 10 NWLR [Pt. 571] 35; Adewuyin v Ishola (1958) WRNLR 110.

  109. 109.

    Chapter 2, Constitution of the Federal Republic of Nigeria.

  110. 110.

    Demonstrated in the 2014 Supreme Court’s categorical decision in Ukeje and Anor. v Ukeje (2014) 11 NWLR 1154; (2014) All FWLR Pt 730 p. 1154 upholding women’s inheritance rights.

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Authors and Affiliations

  1. Department of Commercial Law, Faculty of Law, University of Cape Town, Cape Town, South Africa

    Ada Ordor & Ngozi Oluchukwu Odiaka

  2. College of Law, Afe Babalola University, Ado-Ekiti, Nigeria

    Ngozi Oluchukwu Odiaka

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  1. Ada Ordor
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  1. School of Law, University of Dundee, Dundee, UK

    Luca Siliquini-Cinelli

  2. Faculty of Law, University of Cape Town, Cape Town, South Africa

    Andrew Hutchison

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Ordor, A., Odiaka, N.O. (2019). Engaging with Qualifying Principles in Nigerian Contract Law. In: Siliquini-Cinelli, L., Hutchison, A. (eds) More Constitutional Dimensions of Contract Law. Springer, Cham. https://doi.org/10.1007/978-3-030-15107-2_6

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