730

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

29December2000

AFROTECTECHNI
CALSERVI
CES(
NIG)LTD.

V.

1.

MI
A&SONSLI
MITED
2.

AFCONENGI
NEERI
NGLI
MITED

SUPREMECOURTOFNI
GERI
A

SC.132/
1992

ABUBAKARBASHI
RWALI
,J.
S.C.(
Presi
ded)

I
DRI
SLEGBOKUTI
GI,
J.S.
C.(
Readt
heLeadi
ngJudgment
)

ANTHONYI
KECHUKWUI
GUH,
J.S.
C.

ALOYSI
USI
YORGYERKATSI
NA-
ALU,
J.S.
C.

EMMANUELOLAYI
NKAAYOOLA,
J.S.
C.(
Dissent
ed)

FRI
DAY,
15THDECEMBER,
2000

ACTI
ON-Causeofact
ion-Sev
eral
causesofact
ion-Ri
ghtofpar
tyt
ojoi
ninasui
t.
APPEAL-I
ssuesfordet
ermi
nat
ion-For
mul
ati
onofmor
ethanonei
ssuef
rom agr
oundof
appeal
-Pr
opri
etyof

COMMERCI
ALLAW -Cr
edi
tsal
e-Condi
ti
onal
credi
tsal
e-Nat
ureof
.

COMMERCI
ALLAW -Cr
edi
tsal
etr
ansact
ion-Nat
ureof
.

COMMERCI
ALLAW -Hi
repur
chaset
ransact
ion-Nat
ureof
.

COMMERCI
ALLAW -Hi
repur
chase,
credi
tsal
eandcondi
ti
onal
credi
tsal
e-Rel
ati
onshi
pamong.

COMMERCIALLAW -Sal
eofgoods-Cont
ractofsal
e-Meani
ngof
-Sect
ion1oft
heSal
eof
GoodsAct
,1893.

COMMERCIALLAW -Sal
eofgoods-Cont
ractofsal
e-Whencondi
ti
onal
-Sect
ion1(
3)oft
he
Sal
eofGoodsAct
,1893.

COMMERCI
ALLAW -Sal
eofgoods-Cont
ractofsal
e-Wher
ereducedi
ntowr
it
ing-Dut
yon
cour
ttogi
veef
fectt
her
eto.

COMMERCI ALLAW -Sal

eofgoods-Cont
ractofsal
e-Whet
hercondi
ti
onal
ornot-Testf
or
det
ermi
ning.

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

731

COMMERCIALLAW -Saleofgoods-I
nsolvency-Whenaper
sondeemedt
obei
nsol
vent-
Sect
ion62(
3)oft
heSaleofGoodsAct,1893.

COMMERCI ALLAW -Sal

eofgoods-I
ntent
ionofpar
ti
esi
nacont
ractofsal
e-Det
ermi
nat
ionof
-Rel
evantf
actor
s.

COMMERCI
ALLAW -Sal
eofgoods-Li
en-Unpai
dsel
l
er'
sli
en-Nat
ureof
-Whenexer
cisabl
e.

COMMERCI
ALLAW -Sal
eofgoods-Negot
iabl
einst
rument-Ter
msuponwhi
chsamegi
venby
debt
ort
ocr
edi
tor-Howdet
ermi
ned.

COMMERCIALLAW -Sal
eofgoods-Paymentbynegoti
ableinst
rument-Nat
ureandef
fectof
-
Sel
l
er'
sremedyt
her
eunder-Nat
ureof-Rel
evantconsi
derat
ions.
COMMERCIALLAW -Sal
eofgoods-Pr
opert
yingoods-Ti
mewhenpassed-Deter
minati
onof-
Pr
operappr
oacht
heret
o-Sect
ions17and18oftheSal
eofGoodsAct
,1893consi
dered.

COMMERCIALLAW -Saleofgoods-Pr
oper
tyi
ngoods-Possessi
onofgoods-Di
sti
nct
ion
bet
ween-Rel
evanceofdist
inct
ion.

COMMERCIALLAW -Saleofgoods-Pr
opertyi
nspeci
fi
cgoods-Whendeemedpassed-Rules
gov
erni
ng-Rel
evantconsi
der
ati
ons-Sect
ions17(
1)and18oftheSal
eofGoodsAct,1893.

COMMERCI
ALLAW -Sal
eofgoods-Ri
ghtofl
i
enofsel
l
er-Whenmaybel
ost-Ci
rcumst
ances
of
.

COMMERCI ALLAW -Sal

eofgoods-Ri
ghtofsel
l
ert
obepai
dthecont
ractpr
ice-Exi
stenceofa
l
ien-Di
ff
erencebet
weenthetwo.

COMMERCI ALLAW -Sal

eofgoods-Ri
ght
sconf
err
edonbuy
erorsel
l
er-Whet
herpar
ti
esmay
bycont
ractvar
y-Wheredone-Eff
ect
.

COMMERCI ALLAW -Sal

eofgoods-Ri
ghtsofsel
l
erdur
ingper
iodofcr
edi
t-Nat
ureof-How
exer
cised-Sect
ion28ofSal
eofGoodsAct,
1893.
COMMERCIALLAW -Sal
eofgoods-Sell
erofgoods-Whet
herhasr
ightt
oret
akegoodsi
n
def
aul
tofbuy
ertopayagreedi
nst
alment
s.

COMMERCIALLAW -Sal
eofgoods-Unpai
dsel
l
er-Rightof-Whent
ermi
nat
esorl
ost-Whet
her
par
ti
esmaybycont
ractcr
eat
especi
alri
ght
sinthesel
ler
.

COMMERCI ALLAW -Sal

eofgoods-Unpaidsel
ler-Ri
ghtofl
i
enof-Whenmaybel
ostbywai
ver
-Sect
ion43(1)oft
heSal
eofGoodsAct,1893.

COMMERCIALLAW -Sal
eofgoods-Unpai
dsel
l
er-Ri
ghtoft
owi
thhol
ddel
i
ver
yofgoods-
Nat
ureof
.

732

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

COMMERCI
ALLAW -Sal
eofgoods-Unpaidsel
l
er-Ri
ght
sof-Ext
entandscopeof-Sect
ion
39(
1)&(
2),
Sal
eofGoodsAct,
1893consider
ed.

COMMERCI ALLAW -Saleofgoods-Unpai

dsell
er-Whereresel
l
sgoods-Natur
eofti
tl
e
acqui
redbysecondbuyervi
s-a-
visor
igi
nal
buyer-Sect
ion48oftheSal
eofGoodsAct
,1893.
COMMERCI ALLAW -Sal
eofgoods-Unpai
dsel
l
er-Whoi
s-Sect
ion38(
1)oft
heSal
eofGoods
Act
,1893.

CONTRACT-Cont
ractofsal
e-Wher
ereducedi
ntowr
it
ing-Dut
yoncour
ttogi
veef
fectt
her
eto.

CONTRACT-Cr
edi
tsal
e-Condi
ti
onal
credi
tsal
e-Nat
ureof
.

CONTRACT-Cr
edi
tsal
etr
ansact
ion-Nat
ureof
.

CONTRACT-Hi
repur
chaset
ransact
ion-Nat
ureof
.

CONTRACT-Hi
repur
chase,
credi
tsal
eandcondi
ti
onal
credi
tsal
e-Rel
ati
onshi
pamong.
CONTRACT-Li
en-Li
eni
nthel
egal
sense-Li
enbycont
ract-Meani
ngsofanddi
sti
nct
ion
bet
ween.

CONTRACT-Li
en-Meani
ngandnat
ureof-Wheni
tar
ises-Ef
fectof
.

CONTRACT-Speci
fi
cper
for
mance-Nat
ureof-Whenwi
l
lber
efused.

CONTRACT-Speci
fi
cper
for
mance-Ref
usal
of-Whet
heraf
fect
sent
it
lementt
odamages.

CONTRACT-Termsofcont
ract-Ri
ght
sofpar
ti
est
ocont
ractont
hei
rownt
erms-Dut
yoncour
t
i
nint
erpr
eti
ngsame.

CONTRACT-Wr
it
tencont
ract
s-I
nter
pret
ati
onof-Pr
inci
plesgui
ding.

COURT-Rel
i
efnotcl
aimed-Whet
hercour
tcangr
ant
.

I
NJUNCTION-Perpet
uali
njunct
ion-Conductofpl
aint
if
f-Rel
evanceofi
nconsi
der
ati
onof
whet
hert
ograntornot
.
JUDGMENTANDORDER-Rel
i
efnotcl
aimed-Whet
hercour
tcangr
ant
.

JUDGMENTANDORDER-Speci
fi
cper
for
mance-Ref
usal
of-Whet
heraf
fect
sent
it
lementt
o
damages.

NI
GERI
ANLEGALSYSTEM -St
atut
esofGener
alAppl
i
cat
ion-Needt
oNi
ger
iani
se.

PRACTI
CEANDPROCEDURE-Act
ion-Causesofact
ion-Sev
eral
causesofact
ion-Ri
ghtof
par
tyt
ojoi
ninasui
t.

PRACTICEANDPROCEDURE-Consequent
ial
order
s-Powerofsuper
iorcour
tst
ogr
anti
n
deser
vingcases.

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

733

PRACTI
CEANDPROCEDURE-Issuesf
ordet
ermi
nat
ion-For
mul
ati
onofmor
ethanonei
ssue
fr
om agr
oundofappeal
-Pr
opr
iet
yof

PRACTI
CEANDPROCEDURE-Pl
eadi
ngs-Bi
ndi
ngnessof
PRI
NCI
PLESOFI
NTERPRETATI
ON-Wr
it
tencont
ract
s-I
nter
pret
ati
onof-Pr
inci
plesgui
ding.

SALEOFGOODS-Absol
utesal
e-Condi
ti
onal
sal
e-Di
sti
nct
ionbet
ween-Ef
fectofeach.

SALEOFGOODS-Cont
ractofsal
e-Meani
ngof-Sect
ion1oft
heSal
eofGoodsAct
,1893.

SALEOFGOODS-Cont ractofsal
e-Pay
mentofpr
ice-Wher
edef
err
ed-Whet
hert
hatal
one
makescont
ractofsal
econditi
onal
.

SALEOFGOODS-Cont
ractofsal
e-Whencondi
ti
onal
-Sect
ion1(
3)oft
heSal
eofGoodsAct
,
1893.

SALEOFGOODS-Cont
ractofsal
e-Wher
ereducedi
ntowr
it
ing-Dut
yoncour
ttogi
veef
fect
ther
eto.

SALEOFGOODS-Cont
ractofsal
e-Whet
hercondi
ti
onal
ornot-Testf
ordet
ermi
ning.

SALEOFGOODS-Cont
ractofsal
e-I
ntent
ionofpar
ti
es-Det
ermi
nat
ionof-Rel
evantf
act
ors
t
her
efor
.

SALEOFGOODS-Insol
vency-Whenaper
sondeemedt
obei
nsol
vent-Sect
ion62(
3)oft
he
Sal
eofGoodsAct
,1893.

SALEOFGOODS-Li
en-Rightofli
enofunpai
dsel
l
er-Whenmaybel
ostbywai
ver-Sect
ion
43(
1)oft
heSal
eofGoodsAct,1893.

SALEOFGOODS-Li en-Ri
ghtofli
enofunpai
dsell
er-Whent
ermi
nat
esorl
ost-Whet
herpar
ti
es
maybycont
ractcr
eatespeci
alr
ightsi
nthesel
ler
.

SALEOFGOODS-Li
en-Unpai
dsel
l
er'
sli
en-Nat
ureof-Whenexer
cisabl
e.

SALEOFGOODS-Negot
iabl
einst
rument-Ter
msuponwhi
chsamegi
venbydebt
ort
ocr
edi
tor-
Howdeter
mined.

SALEOFGOODS-Pr oper
tyi
ngoods-Ti
mewhenpassed-Deter
minat
ionof-Pr
operappr
oach
ther
eto-Sect
ions17and18oftheSal
eofGoodsAct
,1893consi
der
ed.

SALEOFGOODS-Pr
oper
tyi
ngoods-Possessi
onofgoods-Di
sti
nct
ionbet
ween-Rel
evanceof
di
sti
nct
ion.
734

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

SALEOFGOODS-Pr oper
tyinspeci
fi
cgoods-Whendeemedpassed-Rul
esgover
ning-
Rel
evantconsi
der
ati
ons-Sect
ions17(1)and18oft
heSal
eofGoodsAct,
1893.

SALEOFGOODS-Ri
ghtofsel
l
ert
obepai
dthecont
ractpr
ice-Exi
stenceofal
i
en-Di
ff
erence
bet
weent
hetwo.

SALEOFGOODS-Ri ght
sconf
err
edonbuy
erorsel
l
er-Whet
herpar
ti
esmaybycont
ractv
ary-
Wheredone-Ef
fect
.

SALEOFGOODS-Right
sofsell
erdur
ingper
iodofcr
edi
t-Nat
ureof
-Howexer
cised-Sect
ion28
oft
heSal
eofGoodsAct,1893.

SALEOFGOODS-Sell
erofgoods-Whet
herhasr
ightt
oret
akegoodsi
ndef
aul
tofbuy
ert
opay
agr
eedi
nst
alment
s.

SALEOFGOODS-Unpai
dsel
l
er-Ri
ghtoft
owi
thhol
ddel
i
ver
yofgoods-Nat
ureof
.
SALEOFGOODS-Unpaidsel
ler-Ri
ght
sof-Ext
entandscopeof-Sect
ion39(
1)&(
2),
Sal
eof
GoodsAct
,1893consi
der
ed.

SALEOFGOODS-Unpaidsell
er-Wher
eresel
lsgoods-Nat
ureofti
tleacqui
redbysecondbuy
er
vi
s-a-
visor
igi
nal
buy
er-Sect
ion48oft
heSaleofGoodsAct,1893.

SALEOFGOODS-Unpai
dsel
l
er-Whoi
s-Sect
ion38(
1)oft
heSal
eofGoodsAct
,1893.

SALEOFGOODS-Li
en-Ri
ghtofl
i
enofsel
l
er-Whenmaybel
ost-Ci
rcumst
ancesof
.

SALEOFGOODS-Pay mentbynegoti
abl
einst
rument-Nat
ureandef
fectof-Sel
l
er'
sremedy
ther
eunder-Nat
ureof-Rel
evantconsi
der
ati
ons.

WORDSANDPHRASES-Cont
ractofsal
e-Meani
ngof
-Sect
ion1t
heSal
eoft
heGoodsAct
,
1893.

WORDSANDPHRASES-Li
en-Li
eni
nthel
egal
sense-Li
enbycont
ract-Meani
ngsofand
di
sti
nct
ionbet
ween.
WORDSANDPHRASES-Li
en-Meani
ngandnat
ureof
-Wheni
tar
ises-Ef
fectof
.

WORDSANDPHRASES-Pr oper
tyi
ngoods-Possessi
onofgoods-Di
sti
nct
ionbet
ween-
Rel
evanceofdi
sti
nct
ion.

WORDSANDPHRASES-Unpai
dsel
l
er-Whoi
s-Sect
ion38(
1)oft
heSal
eofGoodsAct
,1893.

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

735

I
ssues:

1.

Whet hert
heCourtofAppealwasr i
ghtini
tsvi
ewt hatOwnershi
pint
heequi
pmentpassedtothe
1strespondentonproperconst
ruct
ionofExhi
bit1mer el
ybecauset
heappel
l
anthaddeli
ver
ed
theequipmentatthesit
eofthePlaint
if
fatKontagora.

2.

Whethert
heCour tofAppeal
wasri
ghtinit
sviewthatacceptanceofnegot
iabl
einst
rument
sas
paymentfortheequi
pmenthadconver
tedthecondi
tionalsal
eoftheseequipmenti
ntoan
absol
utesale.

3.

WastheCourtofAppeal
righti
nitsviewt
hatt
heonlyremedyopent
otheappell
antwasan
act
ionf
ortherecov
eryofthebalanceoft
hesum unpai
dandnotini
tsexer
ciseoft
heri
ghtof
l
i
enorr
epossessi
onoft
hepl
antwhent
heagr
eementbet
weent
hepar
ti
espr
ovi
dedf
ort
hose
r
emedi
es?

4.

WastheCourtofAppealr
ighti
nholdi
ngthatthe1strespondentest
abl
i
shedal
egal
righti
nthe
equi
pmentastoenti
tl
eittotheequi
tabl
erel
iefssought?

5.

WastheCour tofAppealri
ghti
nholdi
ngt
hattheappell
antwaiv
edallt
herest
rict
ivecondi
ti
onsi
n
Exhi
bit1whent hewaiveroft
hesameasadef encewasnotspeci
fi
cal
lypl
eadednorwer e
ci
rcumstancesandfactsamounti
ngtowaiv
erpleadedinanswert
othe1strespondent'
s
pl
eadings'

6.

WastheCourtofAppealr
ighti
nmaki nganordert
oenf or
cethesecondagr
eementwhent
he
r
espondentf
ail
edtoful
fi
lli
tsobli
gat
ionunderthefi
rstcontr
act
?

7.

Whet hert
heCourtofAppealwasr i
ghti
nmaki nganorderthatthesaidequipmentbedel
iver
ed
tothe1strespondentsubj
ecttotheappel
lantpayingtheentir
esum out st
andingasbal
anceof
tot
alcostoftheequipmenttaki
ngintoaccountN381,160.00thePlainti
ffhassofarpai
dtothe
1strespondentwhensuchreli
efwasnotpl acedbefor
et hetri
alcourt
.

Fact
s:

Thetransacti
onini
ssueisacontr
actofsal
ebetweentheappell
antandt
he1strespondent
i
nrespectoftheappel
l
ant'
sParkerCr
ushingPl
antwit
hitsauxi
li
aryequi
pment,
thati
stosay :

1. Par
ker5245/
4Cr
ushi
ngPl
antCombi
nat
ionv
alueat
 N476,
000.
00

2. FodenQuar
ryDumpTr
uckModel
FC27 N84,
000.
00

3. BD440Gener
ati
ngset
. N66,
000.
00

4. Spar
epar
ts N38,
900.
00

Transpor
tat
ionoft hepl
antbyt heappel
lanttothe1strespondent
'ssi
teatKont
agorat
ogether
withtheagr
eedf eesforthecommi ssi
oningoftheequipmentwereassessedandfi
xedat
N38,000.
00,thusbr i
ngi
ngthetotalcont
ractpri
ceofthesaletoN702,900.
00.Thecont
ract
whichisinwrit
ingwasdul yexecut
edbyt heappell
antandwast ender
edinevi
denceatthe
heari
ngasExhi bi
t1.

Pursuantt othetermsofExhibit1dat
ed28thMar ch,1978,t
he1strespondent
,asthe
pur
chaser,"uncondit
ionall
yandirr
evocabl
y"undert
ooktopayt otheappel
lant
,asthesel
ler
,the
sai
dtotalsum ofN702, 900.00asconsi
derat
ionforthesaleand

736

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

del
i
v er
yoftheplantt
othe1str
espondent
'
ssit
eatKont
agor
a.Thepr
eci
set
ermsofpay
ment
wereexpr
esslysti
pul
atedbyt
heparti
esasfol
l
ows:

"
1.

40%cashdepositofN281,
160.00(Twohundr
edandei
ght
y-onet
housand,
onehundr
edand
si
xtyNai
ra)pay
ableinadvanceofdeli
ver
y.
2.

Bal
anceof60%pay ablebysi
xequali
nstalmentsofN70,290.
00(Sevent
ythousand,t
wohundr
ed
andni
netyNai
ra)eachsecuredbypost-datedchequespayabl
eont he27t
hApr i
l
,27thMay
,
27t
hJune,27t
hJuly ,
27thAugustand27thSeptemberrespecti
vel
y.
",

Thepart
iesf
urtheragr
eedthatt
heappel
lantwoul
dhavearightofl
i
enonallt
hemachineryunt
il
suchti
meast hecontr
actamountwasfull
ypai
d.The1str
espondentf
inal
l
yboundi
tselft
othe
appel
l
antasfoll
ows:

"
Weal soconfi
rmthatshoul
dwef ai
ltopayanyoftheinstal
mentsdetail
edabovewi t
hinone
monthoftheduedate,Afr
otecshal
ltakeimmediat
epossessionofthosepropert
iesinspeci
e
t
hatremainedunpai
dforwithi
nthesubjectoft
hist
ransacti
onwithouthi
ndranceandwi t
hout
r
ecourse.
"

Onr eceiptofthepay mentofN281,160.00andt hepost -

datedcheques,theappellantproceeded
toinstallandcommi ssiontheequipmentwi thit
saccessor i
esattheKont agoraquarrysit
eof
the1str espondent.Regrett
ably
,howev er,al
lthe1str espondent'
spost-datedchequeson
presentationforpaymentbyt heappell
antont heirrespect i
veduedateswer edishonouredand
retur
nedunpai d.Anothersetofpost-datedchequesi ssuedbyt he1strespondentt othe
appellantinrepl
acementoft hebouncedchequeswer et hemselv
esagai ndishonouredand
retur
nedunpai d.Alleff
ortsbytheappellanttocollecttheunpaidbalanceoft hecontractpri
ceof
thesai dplantandequipmentf r
om the1str espondentpr ovedabort
ive.

Foll
owi ngthe1str espondent'srequestforthedismant l
i
ng, t
ransport
ati
onandr ei
nstallati
onof
theplantati t
snewsi teatKaduna,theappel l
antproceededt oKontagora,dismantledt heplant
buttranspor t
edt hesamet ot heappell
ant'swarehouseinKaduna.Thi s,itdidinexerciseofits
ri
ghttor etakeimmedi at
epossessionoft hepropertyinissueaspr ov
idedf orinExhibi
t1.The
appellantagaindemandedt heunpai dbalanceofthepur chasepriceoftheequi pmentf rom the
1strespondent .Afterthefai
lurebythe1str espondenttomeetar evi
sedpay mentproposal
agreedt obyt hepar t
ies,t
heappel l
antresolvedtoexerciseit
srightofli
enand/ orretentionov er
theplantandt osellt
hesamet othe2ndr espondentandr efundthe1str espondent'sdeposi t
.

Accor
dingl
y,t
heappel
l
antaddr
essedt
hel
ett
er,
Exhi
bit14t
othe1str
espondentaf
fect
ingi
twi
th
noticeofitsi
ntenti
ontodi
sposeof,bysal
e,thecrushi
ngequipmentini
ssue.I
twasaf t
ert
he
receiptofthi
snoticet
hatt
he1strespondentinst
it
utedthi
sacti
onclai
mingagainstt
he
appellantasfol
lows:

"
(i
)

Perpetuali
njunct
ionrest
rai
ningthedefendant
,it
sagent
s,ser
vant
sorot
herof
fi
cer
sact
ingoni
ts
behalffr
om disposi
ngofbysal eorotherwi
setheequi
pment.

(
ii
)

Damages.

(
ii
i)

Speci
fi
cper
for
manceofagr
eementofi
nst
all
ati
onofequi
pmenti
.e.

(
a)

Par
ker5245/
4cr
ushi
ngpl
antcombi
nat
ion

(
b)

Fol
denModel
DumpTr
uck

(
c)

BD440Gener
ati
ngSet

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

737
(
d)

Spar
epartsforcr
ushi
ngpl
antatKadunaquar
rysit
eoft
heplaint
if
fbydef
endantor,
inthe
al
ter
nat
ive,r
efundofal
lmoni
espaidbythepl
aint
if
ftot
hedefendantont
hesaidequipment
."

Attheconcl
usionoft ri
al,thetri
alcour
theldthattheappell
ant'sacti
onwasi ntheexer
ciseofi
ts
ri
ghtofli
enand/oritsrighttowi t
hholdthesubject-
matterofthesaleunti
lful
lpaymentofthe
contr
actpri
ce.It
,therefore,accordi
ngl
ydismissedt he1strespondent'
scl
aim.

Aggriev
edbythedeci
sionoftheHighCourt
,the1strespondentappeal
edtotheCourtofAppeal
,
whichinaunani
mousdecisionall
owedtheappeal,
setasidethejudgmentandorder
softhetri
al
courtandpr
oceededt
oor der,
i
nteral
ia,
asfol
lows:

"
(i
i)

Specif
icPerfor
manceoft hecont
ractofsal
eanddeliv
er yoft
heequipmentbytheappel
l
antto
the1strespondentsubj
ecttopaymentoftheout
standingbalanceoft
hecontr
actpri
cebythe
said1strespondent
."

Theappel
l
antwasdi
ssat
isf
iedwi
tht
hedeci
sionoft
heCour
tofAppeal
,heappeal
edt
othe
Supr
emeCourt.

I
nresol
vi
ngtheappeal
,theSupr
emeCour
tconsi
der
edt
hef
oll
owi
ngpr
ovi
sionsoft
heSal
eof
GoodsAct
,1893:

"1(
1)Acont r
actofsal
eofgoodsisacontractwherebyt hesell
ertr
ansfer
soragreest
otr
ansf
er
theproper
tyi
ngoodstothebuyerforamoneyconsi derati
on,cal
ledthepri
ce.Ther
emaybea
contr
actofsal
ebetweenonepartownerandanother .

(
2)

Acont
ractofsal
emaybeabsol
uteorcondi
ti
onal
.
 (
3)

Wher eunderacont r
actofsal
etheproper
tyinthegoodsistransf
erredfrom t
hesell
ertot
he
buyerthecontracti
scall
edasale;butwherethetr
ansferofthepropert
yinthegoodsistotake
placeatafurtureti
meorsubjectt
osomecondi ti
onthereaf
tertobef ul
fi
ll
edthecontr
acti
s
call
edanagr eementtosell
,

(
4)

Anagreementt
osell
becomesasalewhenthet
imeelapsesorthecondi
ti
onsar
eful
fi
ll
ed
subj
ecttowhi
chtheproper
tyi
nthegoodsi
stobet
ransferr
ed.
"

"38(
1)Thesel
l
erofgoodsi
sdeemedt
obean"
unpai
dsel
l
er"wi
thi
nthemeani
ngoft
hisAct-

(
a)

Whent
hewhol
eoft
hepr
icehasnotbeenpai
dort
ender
ed;

(
b)

Whenabi l
lofexchangeorot
hernegoti
ablei
nstr
umenthasbeenrecei
vedascondit
ional
payment,
andt hecondi
ti
ononwhichitwasrecei
vedhasnotbeenfulf
il
ledbyr
easonofthe
di
shonouroftheinst
rumentorot
herwise.
"

"39(1)Subjectt
ot heprovi
sionsoft
hisActandofanyst
atut
einthatbehal
f,notwi
thst
anding
thatthepropertyi
nt hegoodsmayhav epassedt
othebuyer
,theunpaidsel
lerofgoods,
assuch,
hasbyi mplicat
ionoflaw.

(
a)

Al
i
enont
hegoodsorr
ightt
oret
aint
hem f
ort
hepr
icewhi
l
ehei
sinpossessi
onoft
hem;

(
b)

Omi
tt
ed
(
c)

Omi
tt
ed

(
2)

Wherethepr
opert
yingoodshasnotpassedt
othebuy
er,
theunpai
dsel
l
erhasi
naddi
ti
ont
ohi
s
ot
herremedi
es,ari
ghtof

738

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ger
ianWeekl
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ts

29December2000

wi
thhol
dingdel
i
ver
ytoandco-
ext
ensi
vewi
thhi
sri
ght
sofl
i
en

"
41(1)Subj
ecttotheprovi
sionsoft
hisAct,
theunpaidsel
lerofgoodswhoisi
npossessi
onof
t
hem isent
it
ledtoret
ainpossessi
onofthem unt
ilpaymentortenderoft
hepr
icei
nthe
f
oll
owingcases,namely:

(
a)

wher
ethegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;

(
b)

wher
ethegoodshav
ebeensol
doncr
edi
t,butt
het
erm ofcr
edi
thasexpi
red;

(
c)

wher
ethebuy
erbecomesi
nsol
vent
.
(
2)

Thesell
ermayexer ci
sehi
sri
ghtofli
ennotwit
hstandi
ngthatheisi
npossessionoft
hegoods
asagentofbail
eeorcustodi
erf
orthebuyer.
""43(
1)-Theunpaidsel
lerofgoodsl
oseshi
sri
ght
ofr
etenti
onthereon:

(
a)

(
b)

(
a)

Bywai
vert
her
eof
"

"
48(2)Wher
eanunpai
dsell
erwhohasexerci
sedhi
sri
ghtofl
i
enorretenti
onorst
oppagein
t
ransi
tur
esel
lst
hegoods,
thebuy
eracqui
resagoodti
tl
ether
etoasagainstt
heori
ginal
buyer
"

Hel
d(Al
l
owi
ngt
heAppeal
bymaj
ori
tyof4t
o1,
Ayool
a,J.
S.C.di
ssent
ing)
:

1.

OnMeani ngofcont r
actofsal
eundertheSaleofGoodsAct1893-Undersecti
on1oftheSale
ofGoodsAct ,1893,acontr
actofsal
eisacontractwher
ebythesel
lert
ransf
ersoragr
eesto
tr
ansferpropert
yinthegoodstothebuyerforamoneyconsi
derati
oncall
edthepri
ce.
(Pp.778,
para.A;783,para.
G)
2.

OnWhenpr
oper
tyi
ngoodsdeemedpassedi
nacont
ractofsal
e-

Bysection17( 1)oftheSal eofGoodsAct ,1893wher et hereisacont r

actf orthesaleofspecif
ic
goods,thepr opertyi
nt hem ist r
ansferredtot hebuy eratsucht imeast hepar ti
estheret
oint
end
i
ttopass.Thus, whereanyr ight,dutyorliabilitywoul dar i
seunderacont ractofsaleby
i
mpl i
cationofl aw,suchr i
ght,dutyorl i
abil
itymaybenegat i
vedorv aried,interali
a,bythe
expressagreementoft hepar ti
es.Itispri
nci pal l
ythei ntenti
onoft hepar t
ies,asshownbyt he
termsoft hecont r
act,amongstot herconsi der at
ions,whi chdet erminest het i
mewhent he
propert
yi nthegoods, thesubj ect-
mat t
eroft hecont ractofsal e,istransferredorpassedt othe
buyer.Nodi ff
icult
ycant hereforearisewher et hecont ractbetweent hepar ti
esexpresslyst
ates
whenoratwhatt i
met hepr opertyinsuchgoodspassest othebuy er.(Pp.778, paras.A-B;
783-
784,paras.H-B)

3.

OnRul
esgov
erni
ngt
hepassi
ngofpr
oper
tyi
nspeci
fi
cgoodsi
nacont
ractofsal
e-

Secti
on18oftheSal
eofGoodsAct
,1893l
aysdownt
hreer
uleswhi
chgov
ernt
hepassi
ngof
proper
tyi
nspeci
fi
cgoodsunl
ess

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)Lt
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d

739

adif
ferentint
entioni
sexpressedint
hecontract
.Theserul
es, however,ar
emer epresumptions
andthelawdoesper mitpart
iestoacontr
acttosett
let
hepoi ntforthemselv
esbyany
i
ntel
li
gibleexpressi
onofthei
rint
enti
on.Butt
her ul
esdonotappl ytothefactsofthepresent
caseandneednotbegi venanyconsider
ati
on.(P.784,par
a.C)
4.

OnDi
sti
nct
ionbet
weenandef
fect
sofanabsol
uteorcondi
ti
onal
cont
ractofsal
erespect
ivel
y-

Byv ir
tueofsect i
on1( 2) ,
(3)and( 4)oft heSaleofGoodsAct ,1893acont r
actofsal emaybe
absolut eorconditional.Wher eunderacont ractofsal ethepropertyinthegoodsi stransferred
from thesel l
ertot hebuy erthecontractiscalledasal ebutwheret hetransferoft hepr opertyi
n
thegoodsi stotakepl aceataf uturet i
meorsubj ecttosomecondi ti
onst hereaftertobe
fulfi
l
ledt hecontractiscal l
edanagr eement .Anagr eementtosellbecomesasal ewhent he
ti
meel apsesorthecondi ti
onsaref ulfi
ll
edsubj ecttowhichtheproper t
yint hegoodsi stobe
transferred.Accordingly,whereacont r
actfort hesaleofspecifi
cgoods, asi nthepr esentcase,
i
smadesubj ecttoacondi ti
onwhi cht oalli
ntentandpur posessuspendst hepassi ngoft he
proper t
y, t
heproper t
ywi l
l notpasstot hebuy eratt heti
meoft hemaki ngoft hecont r
act,but
onlywhent heagr eedcondi ti
onasst ipulat
edbyt heparti
esisful
fil
led.Untilthen,thecont ract
takesef fectasanagr eementt osellandnotanout ri
ghtorabsol
utesal eoft hegoods.( P.785,
paras.E- H)

PerKUTI
GI,
J.S.
C.atpages771-
772,
par
as.H-
A:

'
Iam innodoubtwhat soeverthatthefactsoft hiscaseshowcl earlythattheequipmentor
machi ner
ywer esoldtothedef endantconditionall
y.Theconditionsbeingt hat'
Thedef endant
shall
hav eali
enonal lthemachi neryunti
lat imet hatthedefendantreceivedpay mentoft heful
l
contr
actamountof N702,900.00'andthat'
thedef endantshalltakeimmedi at epossessionofthe
machi ner
ywithinonemont hshouldtheplaintif
ffailt
opayanyoft heinstalmentalpayment
detai
ledinExhibit1'
.Inotherwor dsIam oft hev i
ewt hatthepropertyintheequipmentor
machi ner
yhadnev erpassedt othePlainti
ffwhent hedefendanteffectedtheseizurewhi chis
thesubjectmat t
erofthisacti
on"

PerWALI
,J.
S.C.atpage778,
par
as.B-
D:

"Havingregardtothecont ent
sofExhi bi
t1andt heconductofthepartiesinthi
scase,canitbe
concludedthattheowner shipofthespecificgoodssoldanddeli
veredpassedt othe
respondent'Therespondentagr eedinExhibit1uncondi
ti
onal
lyandi r
revocablyt
hatAfrotec
shallhavealienonallthemachi nerysol
danddel iver
edunderthatcont r
act,
unti
lsuchtimeas
Afrotecrecei
vespaymentoft heful
lcontractamountofN702,900.00.Itwasagreedbyt he
par
ti
esi
nExhi
bit1t
hat

740

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ianWeekl
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29December2000

Shouldt herespondentfai
ltopayanyofthei
nstal
ment sdetai
l
edi nExhibi
t1wi thinonemonth
ofduedat e,theappell
antAfrot
ecshall
takei
mmedi atepossessi
onoft hoseproper t
iesi
nspecie
thatremainsunpaidwi t
houthindr
anceandwithoutrecour
se.Thisshowst hatthepassingofthe
propertytotherespondentiscondi
ti
onaltot
hepay mentinhil
lofthecontractpriceasagreedin
Exhibit1."

PerI
GUH,
J.S.
C.atpages785,
par
asA-
E;785-
786,
par
as.H-
B:

'
'Alt
hought hecontract,Exhi
bit1,admi t
tedlystat
edt hattheplantandequi pmentwer etobe
deli
veredbyt heappellantattheKontagor asit
eoft he1str espondent ,i
tcar
ef ul
l
ymade
provi
sionsast ohowt hepr i
ceoft heequipmentwer etobepai dbyt he1strespondentThiswas
bypaymentof 40%cashdeposi tandt heliqui
dationofthebal ancebysi xequal i
nstalmentsof
N70,290.00.Eachoft heseinstal
ment swassecur edbyapost -datedchequepay ableonthe
27thdayofev er
ymont h,
beginningwiththe27t hdayofApr i
l,1978andt erminati
ngont he27th
dayofSept ember ,
1978.I nparti
cular
,thepar t
iesexpresslystat edthus:

(
i)

Thatt
he1strespondentuncondi
ti
onal
lyandi
rr
evocabl
yagreedthatt
heappell
antshal
lhav
e
al
ienonal
lthemachineryunti
lsuchti
meastheappell
antr
eceiv
edpay mentoft
hefull
contr
act
pri
ceofN702,900.
00.

(
ii
)

Thatshoul
dthesai
d1strespondentf
ail
topayanyofthei
nstal
mentswit
hinonemont
hofthe
duedate,t
heappel
l
antshallt
akeimmediat
epossessi
onofthosegoodst
hatremai
nedunpai
d
forwi
thouthi
ndr
ance.
Iti
scleartome, from acloseexami nationoftheabov et erms, parti
cularythepowersconfer
red
ont heappell
antunderi t
em (ii
)abovet hatthetransactioninissuewascl earl
ynotanabsolute
salebutacondi t
ionalcontractofsale.Inmyv iew,itwast hei ntenti
onoft heparti
esunderit
s
termsthatthetransferofthepr oper
tyi nthegoodswassubj ecttothef ulf
il
mentbyt he1st
respondentofthef ul
ltermsandexpr essedconditi
onsoft heagr eementThi smustbesoasi t
wasex pressl
yagr eedtobyt heparti
est hattheappellantshal lt
akei mmedi atepossessi
onof
thegoodswi thouthindranceont he1str espondent'
sf ail
uretocompl yfull
y,wit
htheconditi
ons
ofthetransacti
on.

"I
nt hepresentcase,allthepost -
datedchequesmeantt ocl
earthe60%oft hepurchaseprice
spreadov ersixmonthswer edishonouredonpr esentat
ionf
orpaymentOtheradditi
onal
chequesi ssuedbythe1str espondenti nrespectofthesepaymentswerealsodishonouredand
ret
ur nedunpaidonpr esentati
on.Ithinkthecourtbelowwasi nerr
ortohaveheldthatpropert
y
i
nt hegoodspassedt othe1st

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741

respondentsimpl ybecausetheappellant
,ascontr
actedinExhibit1,haddeliveredthe
equipmentattheKont agor
asiteofthe1strespondentIti
smyv i
ewt hathadt hatcourtproper
ly
construedExhibit1asawhol e,itwouldhavecomet otheirr
esisti
bleconclusi
ont hatthe
transacti
oninissuewasnotanabsol utesal
ebutacondi t
ionalcontractofsaleandt hatthe
propertyint
hegoodscoul dnothavepassedt othe1strespondentast heagreedcondi ti
onsand
stipul
ati
onsgov erni
ngt hecont
ractofsalehadnotbeenf ulf
il
ledbyt he1strespondent .
"

5.

OnTestf
ordet
ermi
ningwhet
herornotacont
ractofsal
eiscondi
ti
onal
-

Thet
estwhet
heracont
ractofsal
eofspeci
fi
cgoodsi
scondi
ti
onal
ornoti
swhet
hert
he
contracti
smadesubj ecttoacondi
ti
onwhichsuspendst
hepassingoft
hepr
oper
ty,
sot hatt
he
propertywi
llnotpasstothebuyerwhent
hecontracti
smade,butonl
ywhent
hecondit
ionis
ful
fi
ll
ed.(P.795,paras.C-
D)

6.

OnNat
ureofcondi
ti
onal
credi
tsal
e-

Acondi t
ional
credi
tsal
ei sdisti
nguishablefr
om ahirepur chasetransact
ionbecauseofthe
absenceofopt i
ontopurchasebyt hebuy erort
oresil
ef rom thesalebythesell
er.Acreditsal
e
maybecondi ti
onalwhenbyt heagr eementofthepartiespr oper
typassestothebuyeron
condit
ionthathepaysthepur chasepriceasagreed.(P.794, par
as.G- H)

7.

OnRel
ati
onshi
pamonghi
repur
chase,
credi
tsal
e,andcondi
ti
onal
credi
tsal
e-

Hir
epur chase,
credi
tsale,condit
ionalcr
edi
tsal
eareallcognatetr
ansacti
ons.Thecommon
f
actortheyshareisdeferr
edpay mentofpartoral
lofthepurchasepri
ce.Thesever
al
t
ransactionsarehoweverdisti
nguishabl
e.(
P.794,par
as.C-D)

8.

OnNat
ureofhi
repur
chaset
ransact
ion-

I
nthehirepurchasetransact
ion,
thereisnoquesti
onofasalecomingi
ntobeingunl
essand
unt
ilt
hehirerexerci
sesattheappropriat
eti
met heopt
iontopur
chasethegoods.Mixedina
hi
repurchasetransacti
onisacontractofhi
re,
andanopt i
ontopur
chase.(
P.794,paras.D-
E)
9.

OnNat
ureofacr
edi
tsal
etr
ansact
ion-

Inacr editsaletransact
ionthereisasaleoncr edi
tThecredi
tmayt aketheform ofpaymentof
theent i
repur chaseatanagr eedfutur
etimeorpay mentofthepur chasepri
cebyagr eed
i
nst all
ment s.Thereisnoquest i
onofanagr eementtopurchasethegoodsataf utureti
me.Also,
apur chaserofgoodsdoesnothav etheoption,whi
chthehirerhas,ofretur
ningthegoodsand
freeinghimsel ffr
om theobligat
iontopayfur t
heri
nstal
l
ment s.I
tist her
efor
eev i
dentthata
creditsaleisnotahi repurchase

742

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29December2000

tr
ansact
ion.Rat
her,i
tisasalet
ransact
ionsubj
ecttothesamepr i
nci
plesinregar
dtot
he
passi
ngofpropert
yinsaletr
ansacti
onswhicharenotoncredi
t(P.794,paras.E-
G)

10.

OnDi
sti
nct
ionbet
weenpr
oper
tyi
ngoodsandpossessi
onofgoods-

Thequesti
onofthepropert
yingoodsmustbedisti
ngui
shedfr
om thepossessi
onofthem.In
parti
cul
ari
tneedsbeemphasisedthatpr
opert
yinthegoodsdoesnotconnotepossessi
onof
suchgoods.Accor
dingl
y,t
hepropert
yinthegoodsmaybetransf
erredtot
hebuyerbeforeor
aft
erhehastakenpossessi
onofthem oratt
hetimethegoodsaredeli
ver
edtohim.(P.784,
para.
F)
11.

OnMeani
ngofl
i
en-

Ali
enisari
ghttoretai
nthatwhichi
sinone'
spossessionbelongi
ngtoanot
hert
il
lcer
tai
n
demandsofthepersoninpossessi
onar
esati
sfi
ed.(P.786,para.
D)

12.

OnMeani
ngandnat
ureofl
i
eni
nthel
egal
sense-

Ini
tsprimaryorl
egalsense,"Li
en"meansar i
ghtatcommonl awi
nonemant oret
ainthat
whichisri
ghtf
ull
yandcontinuouslyinhi
spossessi
onbelongi
ngtoanot
heruntil
thepresentand
accruedcl
aimsofthepersoni npossessi
onaresati
sfi
ed.I
nthepri
marysense,i
tisgiv
enbyl aw
andnotbycontract
.(P.798,paras.D-E)

13.

OnMeani
ngandnat
ureofl
i
enbycont
ract-

Alienbycont r
actist
herighttodet
aint
hegoodsassecuri
ty.Andthenumer
ousi
nstances
thereofdependsfort
heireff
ectontheval
i
dit
y,scopeandconstr
ucti
onoft
hegov
erning
contract
.(P.798,par
a.F)

14.

OnWhenl
i
enar
ises-
Bysecti
on41(
1)oft
heSal
eofGoodsAct
,1893l
i
enar
isesi
fthef
oll
owi
ngcondi
ti
onsar
e
sat
isf
ied:

(
a)

t
hesel
l
eri
sunpai
dandt
hegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;or

(
b)

t
hest
ipul
atedper
iodofcr
edi
thasexpi
red;
or

(
c)

t
hebuy
erhasbecomei
nsol
vent
;and

(
d)

thesel
lerisi
npossessi onoft hegoodsorpartofthem Undersecti
on41(
2)oftheAct,
thesell
er
mayexer ci
sehisrightofli
ennot wit
hstandi
ngthatheisinpossessi
onofthegoodsasagentor
bail
eeorcustodierforthebuy er
.Intheinst
antcase,t
heappell
antwasanunpaidsel
ler
.(Pp.772
-773,
paras.
F-A;
778-779, paras.H-B;786,par
as.E-F)

15.

OnUnpai
dsel
l
er'
sli
eni
nacont
ractofsal
e-

Theunpaidsell
er'
sli
eni
shisent
it
lementtoretai
nthegoodsinhispossessi
onunti
lthebuy
er
haspaidortender
edthewhol
eoft hei
rpr
ice.Theri
ghtdependsonthesell
erbei
ngin
possessi
on

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d
743

ofthegoodsatthet
imeheexerci
seshi
sri
ghtofli
en.Evenwherethesel
l
eri
sinpossessi
onof
thegoodsasagentorbail
eef
orthebuy
er,
asinthepresentcase,
hemaysti
l
lexer
ciseri
ghtof
l
ien.(
P.786,par
as.D-E)

16.

OnWhoi
sanunpai
dsel
l
eri
nacont
ractofsal
e-

Byv i
rt
ueofsect
ion38(
1)oft
heSal
eofGoodsAct
,1893,
thesel
l
erofgoodsi
sdeemedt
obean
"unpai
dsel
ler
"when:

(
a)

t
hewhol
eoft
hepr
icehasnotbeenpai
dort
ender
ed;

(
b)

abi
llofexchangeorothernegoti
ablei
nst
rumenthasbeenrecei
vedascondit
ionalpayment
,and
t
heconditi
ononwhi chitwasreceiv
edhasnotbeenful
fi
ll
edbyreasonofthedishonouroft
he
i
nst
rumentorot her
wise.

(
Pp.772,
par
as.B-
C;786,
par
as.G-
H)

17.

OnRi
ght
sofanunpai
dsel
l
erofgoodsi
nacont
ractofsal
e-
Byv i
rtueofsect ion39( 1)(a)oft heSal eofGoodsAct , subjecttot hepr ov i
sionsoft heActand
anyst at uteinthatbehal f,notwithst andingt hatt hepr oper t
yint hegoodsmayhav epassedt o
thebuy er,theunpai dsellerofgoods, assuch, hasbyi mpl i
cati
onofl awal i
enont hegoods, or
ri
ghtt or etainthem f orthepr icewhi lehei si npossessi onoft hem.Andbysect ion39( 2),even
wher et hepr opertyi ngoodshasnotpassedt ot hebuy er,theunpai dsel lerhasi naddi t
iontohi s
otherr emedi es,ar ightofwi thholdingdel i
veryt oandco- extensi vewithhi srightsofl i
enwher e
thepr oper tyhaspassedt othebuy eraspr escribedunder39( 1)t hereof.Mor eoversect i
on
39(1)(c) ,subjecttot heprov i
sionsoft heActandnot wi t
hstandi ngthatt hepr opertyint hegoods
mayhav epassedt ot hebuy er,conf ersont heunpai dsel lerri
ghtofr esal eoft hegoodsbutas
l
imi t
edbyt heAct .Inther esult,
ther efore,theunpai dsel l
erhast hesamer i
ghtofr etent i
onor
withhol dingdel i
veryoft hegoodsi nhi spossessi onsol dwhet herornott hepr opertyi nt hem has
passedt othebuy er.Suchunpai dsel lerisnotl iableinconv er
si onast heor iginalbuy er,beingi n
default, i
snotent i
tledtopossessi onoft hegoods.[ Yakassai v .IncarMot ors(Nig.)Lt d.(1975)1
AllNLR287; Kofi v.Mensah1WACA76di st i
ngui shed.]Pp.772, paras.D-F; 787,paras. B-D;F;
779,par as.D- E)

PerKUTI
GI,
J.S.
C.atpages772-
773,
par
as.
H-B:

"Oneofthef act
snotindisputeinthiscaseisthatthesi
xpostdatedchequesissuedbythe
Plai
nti
fftothedefendantinaccordancewi t
hExhibi
t1eachbouncedoneaf t
ertheother
.Twent y
-
oneot herpost-
datedchequesf orsmalleramountsasrepl
acement sal
sower eretur
nedunpaid.
Andalleffor
tstocoll
ectthebalanceoft hesalepri
ceasagreedi
n( Exhi
bit1)provedabort
ive.
Thereisnodoubtatal l
thattheDef endantisanunpaidsel
l
erunder

744

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

theAct.I
twast hereforeacti
ngwi t
hinitsri
ghtswhent houghact i
ngasanagentoft heplai
nti
ff
,
i
tseizedt hemachi nerywhichhadl awfull
ycomei nt
oi t
spossessi onattherel
evantti
me.The
shortofitalli
st hatthecontractofsalebetweenthepar t
iesbeingconditi
onal,t
hedefendant
wasent i
tledtoexer ci
seitsri
ghtofl i
enbothunderthecont ractagreement(Exhi
bit1)andunder
theAct,t
hepl ainti
ffhavingwoef ul
lyfai
ledtosat
isfythecondi t
ionsofsaleofpayingthe60%
balanceoft hesalepr i
ce."
PerI
GUH,
J.S.
C.atpage787,
par
as.F-
H:

"Apply i
ngtheabov epr incipleoflawt othef actsoft hepr esentcase,itiscleartomet hat
whet herornott heproper tyint hegoodshadpassedt othe1str espondentont hedel iv
eryoft he
plantandequi pmentati tsKont agorasite,theappel lant,oncethegoodswer einitspossessi on,
woul donlybel i
abl
etodel iverthem t othe1str espondentonpay mentort enderoft hebal ance
oft hepurchasepr i
ce.Seesect i
on28oft heSal eofGoodsAct ,
1893) .Theappel l
antwas
ent i
tl
edunt i
l t
hentor etainpossessionoft hegoods, thesubjectmat teroft hecont r
actofsal e,
eitherbyvirtueofitslienasanunpai dseller,i
fthepr opertyhadpassed( Seesect i
on39( 1)of
theSal eofGoodsAct , 1893) ,
andIdonotsohol d,orbyv irt
ueofhisr ighttowi thholddeliver
yof
thegoods, i
ftheproper tyhadnotpassed( Seesect i
on39( 2)oftheAct )
.Ineithercase, t
he
appel l
ant,asanunpai dsel l
erhadar ighttor esellthegoodsasi tappear sitdid.Seet ooWar d
Ltd.v .Bi
gnall (
supra)perDi plock,L.J.Ithinktheappel l
antwasent it
ledi nallthecircumst ances
oft hi
scaset oexerci
sei tsrightofli
enand/ orretentionofpossessi onoft hegoodsi nissueas
prov i
dedbot hundert heActandpur suantt othet ermsofExhi bit1."

18.

OnNat ur
eofri
ghtofunpai
dsellert
owi thhol
ddeli
ver
yofgoods-Al
thoughali
enmayonlyari
se
str
ict
osensuwhenthepropertyhel
dbel ongstoanot
her,
ontheot
herhand,t
herightt
owit
hhold
del
iver
yexerci
sedbytheunpaidsel
lerov ert
hegoodsinwhi
chhesti
llhast
hepropert
yhasbeen
descri
bedasaquasi-
li
en(P.787,paras.D-E)

19.

OnDi
ff
erencebet
weent
hesel
l
er'
sri
ghtt
obepai
dthecont
ractpr
iceandt
heexi
stenceofal
i
en-

Thesell
er'
srighttobepaidthecontr
actpri
ceofthegoodsis,undert
helaw, quit
eindependent
oft
heexistenceofal i
en.Ali
enbeinganadditi
onalsecur
it
ygiventothesell
erwhohasy ettobe
pai
d;buthehasar i
ghttobepaidbesi
desandindependentl
yofhisli
en.Thus,therightofthe
sel
l
ertosuef orthepriceoft
hegoodsisindependentofhi
sotherremediesagainstthegoods.
Int
hatregard,undersecti
on43(2)oft
heSaleofGoodsAct ,
[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

745

1893, t
hesellerdoesnotl osehisri
ghtt olienmerelybecausehehasobt ai
nedjudgmentforthe
pri
ceoft hegoodsunl essandunt i
l t
hebuy erhasful
lysati
sfi
edthejudgmentdebtbypay ment
ofthefullcontractpri
cetot hesel
ler.Therefore,t
heCourtofAppeal wasinerr
orwhenitheld
thattheonlyremedyopent otheappel lantwasanact i
onfortherecover
yofthebalanceofthe
pri
ceoft hegoodsandnoti nitsexerciseoft heri
ghtofli
enorretent
ionoftheplantpur
suantto
thetermsofExhi bit1.(Pp.788-789, paras.H-B)

20.

OnRi
ghtofsel
l
erdur
ingper
iodofcr
edi
tinacont
ractofsal
e-

I
tisi
mplici
tinsecti
on28oftheSaleofGoodsAct,1893thatdeli
ver
yoft hegoodsi sconditi
onal
onpaymentandwher epaymentisnotfor
thcomi
ngorifthebuyerbecomesi nsolvent
,thesell
er
i
senti
tl
edtor et
ainthegoodsevenduri
ngthecur
rencyofaperiodofcredit
.(P.779,paras.E-
F)

21.

OnWhenr ightofl i
enorr i
ghtofr etentionofunpaidsell
ertermi
natesandwhet herpar
tiesmay
bycont r
actcr eatespecialri
ght si nthesel l
er-Secti
on43(1)oftheSal eofGoodsAct ,1893
provi
dest hatt heunpaidsellerofgoodsl oseshisri
ghtofli
enorrightofr et
enti
onwhen, inter
ali
a,thebuy erorhisagentl awf ullyobt ai
nspossessionofthegoods.Butal thoughpossessi on
ofthegoodsmayhav epassedt ot hebuy erorhisagentsoast oterminatetheunpaidseller'
s
stat
utoryrightt oali
en,thecont ractitsel
fbet weenthepart
ies,
asi sthepositi
oninthepr esent
case,maymakeexpr esspr ovisionf ororcr eateaspeci
alri
ghtinthesel l
erwhichisanalogous
toalien.Wher esuchexpr esspr ov i
sionisagr eedtobythepart
ies,itcannotbedoubtedt hatit
will
bebi ndingont hepar t
ies.(P. 788, paras.A-B)
22.

OnWhenal
i
enmaybel
ostbyt
hesel
l
er-

Alienmaybelosti
fthesell
errefusestodel
ivert
hegoodsonsomegroundot
herthanthe
buyer'
sfai
l
uretopayortenderthepri
ce,oronsomegr oundot
hert
hanhi
sri
ghtofli
en.Howev
er,
thati
snottheposi
ti
onintheinstantcase.(
P.774,par
a.A)

PerKUTI
GI,
J.S.
C.atpage774,
par
as.F-
G:

"Exhibi
t1beingt heagreementpleadedandr el
i
eduponbyt heparti
es,
allsubsequentactsofthe
parti
esinfulfi
lmentoftheagr eementmustbet r
eatedassuchbutnotasgi vi
ngrisetonew
contractseachandev eryti
meapr oposalismadeonhowt oeff
ectaperf
ormancebya
default
ingparty.Ther
ewasabsol utelynoneedforthedefendantt
ohaveaskedt heplaint
if
ffor
af r
eshlienwhenExhi bit1hadprov idedforsame.Therequestwassuperfl
ous.Thefactwas
thatthetennewchequesst il
lbounced, oneaft
ertheotherandsothedefendantremainedan
unpaidseller
."

746

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

23.

OnWhet
herandwhenunpai
dsel
l
er'
sri
ghtofr
etent
ionoft
hegoodsmaybewai
ved-

Undersect
ion43(l
)(c)oftheSaleofGoodsAct,t
heunpai
dsell
erofgoodsloseshi
sri
ghtof
ret
enti
onther
ein,i
nteral
ia,bywaiverther
eof
.Thus,
theActr
ecogni
sesthattheunpai
dsel
ler
's
l
ienmaybewai ved.(P.
774,paras.A-B)
PerKUTI
GI,
J.S.
C.atpage774,
par
as.C-
E:

"I
tmustbest ressedt hatbypr oceedi ngtoi nstallt
hemachi nesi nKont agoraaf t
ert hei niti
al
dishonouroft hesixpost -dat edcheques, thedef endantwasmer el
yf ul
fi
ll
ingthet ermsof
agreement( Exhibit1)whi chi ncludedi nstallati
onatKont agor a.Failuretoinstallwoul dhav e
amount edtoabr eachoft hecont r actSecondl ythepr oposal toi ssuet ennewpost -dated
chequesi nreplacementoft heor iginal si
xwhi chwer ealsodi shonour ed,wasconv ey edtothe
defendantvidepl aint
iff
'sletterMI A/A/ 27dat ed25thMay1981( seedef endant'sl etterExhibi
t11
dated3r dJuly1981)wher einthedef endantmadei tsownsuggest ionincludi
ngt her equestfora
fr
eshl ett
erofl i
en.Iti
snot ewor thyt hatt hepr oposalsi nthel etterunderr eferencecameonl y
aftert
hedef endanthadr epossessedt heequi pment/machi ner ywhi chevenhadt akenpl ace
before28thMar ch1980( seepar agr aph21oft heamendedst atementofcl aim) .Thedef endant
hasnotbeenshownt ohav ewai vedi t sli
enbydeal i
ngwi tht hemachi nesinanymanner
i
nconsi st
entwi ththelienorbymaki nganynewar rangementwi tht heplainti
ffwhi chi s
i
nconsi st
entwi ththecont inuanceofi t
slien."

24.

OnNat
ureoft
it
leacqui
redbybuy
erwher
eunpai
dsel
l
err
esel
l
sthegoods-

Whereanunpai dsell
erwhohasexer ci
sedhisrightofli
enorret
entionorst
oppagei ntransi
tu
resel
lst
hegoods, thebuyeracqui
resagoodt i
tl
et heret
oasagainsttheori
ginalbuyer
.Underthe
secti
ontheref
ore,t
hesecondbuy eracquir
esagoodt it
let
othegoodsasagai nsttheorigi
nal
buyeranditwouldnotmat t
erthattheunpaidsell
erattheti
meoft hesalewasnott heownerof
thegoods.(Pp.779-780,
paras.H-A;786-
878,paras.H-B)

PerWALI
,J.
S.C.atpage780,
par
as.C-
F:

"Undersecti
on48oftheSalesofGoodsAct,t
heunpaidsel
lerr
etai
nsther
ightt
osellt
he
i
dentif
iedproper
ty,
wherethebuyerhasbecomeinsol
ventTheri
ghtofsal
ecanbeexercisedby
thesell
erundert
hissecti
onwherehehasbeeninconti
nuouspossessi
onofthegoodsorwhere
hehasr egai
nedpossessi
onbyexerci
singhi
sri
ghtofli
enorstoppageoft
hegoodsintransi
t
Thisri
ghtisav
ail
abl
etohi
m whetherornotthepr
opert
yinthegoodshaspassedtotheori
ginal
buyerwhohasbecomeinsol
ventbyhisfai
l
uretopayortendert
hepurchasepr
iceasagr
eedi n
thecontr
act

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

747

withinareasonabl et i
me.Thei ntenti
ont osellthegoodsmustbenot i
fi
edt othei nsolventbuy er
.
Whati sar easonabl etimeint hiscont extisaquest i
onoff actSeeDaar houwer&Co.Lt d.v.
Chr i
sti
an(1917)KB37.I nthatcasei twasagr eedbyt hepar t
iesthatpay mentwast obemade
within90day softhear ri
valoft hegoods.Ov er90day soft hearri
v alofthegoodst hepur chaser
didnotpayf ort hegoodsort akedel i
v eryofthesame.Thesel lergav ethreeday snot i
cet othe
expiryofwhi chhesol dt hegoods.I twashel dthatthethreeday snot i
cei sreasonablehav i
ng
regardtoal lthesur r
oundingci rcumst ancesoft hecase.Ther esaleoft hegoodsr escindedt he
origi
nalcont ractandt heproper tyinthegoodsr ever
tedint heunpai dsell
erwhi chhadpr eviousl
y,
passedt otheor i
ginalbuyer.Thi sactofr esal
er esci
ndedt heor i
ginalcontract,t
husr evertingthe
property,
int hegoodst othesel lerwhopassedgoodt i
tl
ei nthem t othenewbuy er."

25.

OnWhenwai
verar
ises-

Awai verari
seswher eonepar t
yl eadstheothertobelievethathewi l
lnotinsi
stonthepreci
se
sti
pulati
oninthecont r
acte.g.ast othetimeofper f
ormance, andtheot herpar
tyhasactedon
thatbeli
efandhast herebyprejudicedhisposit
ion,thefir
stpartycannotafter
wardsinsi
stonthe
termsoft heori
ginalcontr
act,e.g.astotimeorot herwise.(
P.802,paras.F-G)

26.

OnDet
ermi
ningt
het
ermsuponwhi
chanegot
iabl
einst
rumenti
sgi
venbyadebt
ort
oacr
edi
tor-
Whereanegot i
ablei
nst
rumenti
sgi venbyadebtortohiscredit
or,
thequest
ionofuponwhat
ter
msi ti
sgiveniscl
ear
lyoneoffactdependingontheintenti
onofthepar
ti
es.However,
the
i
ntenti
ontotakeaninst
rumenti
nabsol utepaymentforgoodssoldmustbeclear
lyshownand
notdeducedfrom ambi
guousexpressions.(
P.789,
paras.C-D)

27.

OnNat
ureandef
fectofpay
mentbyanegot
iabl
einst
rument-

Pay mentmay ,byagreement,asinthei nstantcase,bemadebymeansofnegot iableinstr

ument
suchasacheque.Butpay mentbymeansofnegot i
ableinstr umenti sprimaf aciecondi ti
onal on
theinstr
umentbeinghonour edatmat ur i
ty.I
tisonlywher et hei ntenti
onoft hepar ti
esi sthat
suchpay mentisabsolutethatthepri
maf acieviewisexcl uded.Thesel l
er'sremedyt osuef or
thepriceissuspendeddur i
ngthecurrencyoft heinstr
ument .I ftheinstr
umenti shonour edat
mat ur
ity
,theamountt herewil
laccordinglybedeemedef f
ect ivelypaid.I
f,ont heot herhand, i
tis
dishonoured,t
heseller'
sremediesbothundert hecontractofsal einissueandt heSal eof
GoodsAct ,1893automat i
call
yrevi
veandbecomeenf or ceabl e.(Pp.789, paras.D-F; 800,paras.
D-E)

748

Ni
ger
ianWeekl
yLawRepor
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29December2000

PerI
GUH,
J.S.
C.atpages789-
790,
par
asF-
A:

"I
nthepresentcase,i
tisnotindoubtt hattheintent
ionofthepartieswasthattheent
irebal
ance
ofthepurchasepri
cebesecur edbypost -dat
edcheques.Thei ssuewasclearlynotaquesti
on
ofaccept
ingthepost-datedchequesasunqual i
fi
edpaymentfort hegoodsbutasapr omiseto
paythechequesont heduedat es.Asthingsturnedout,however,allt
hechequesinquesti
on
were,onpresent
ati
onf orpayment ,
dishonoured.
Itcannotbedisputedt hattheaccept anceofanegot i
abl
e, i
nstrumentisnor mall
yt reatedas
conditi
onalpaymentCer t
ainl
y,ont hefactsofthepresenttransacti
on,thenegot i
abl e
i
nst r
umentsissuedbyt he1strespondentandaccept edbyt heappel l
antwer etakenas
conditi
onalpaymentI tismyv iewt hatwhere,asinthepresentcase, anegot i
ableinstrument
takenasconditi
onal pay mentfort hepri
ceofgoodsi sdishonoured,variousremedi esf orthe
breachofsuchcont ractofsalei ncludi
ngbutnotlimit
edt oanact i
onf ortheunpai dbal anceare
avail
abletothesell
erdependi ngont hefactsandcir
cumst ancesofeachcase.It hinkt hecourt
belowwasi nerrortohol dthattheaccept anceofanegot i
ableinstr
umenti nallcasesi psof act
o
convertedtheconditi
onal sal
ei nissue,asinthepresentcase,intoanabsol utesaleint he
absenceofanyev idencet oestablishthatthepart
iesagreedt osuchar r
angement "

PerAYOOLA,
J.S.
C.atpages800-
801,
par
as.D-
A:

"Fr
eedom ofpar tiestodet
erminethetermsoft heircontractimpliesthatthepar ti
esarefreeto
agreethatpay mentofthepurchasepricebyanegot i
ableinstr
umentmaybet akenasan
absolutepaymentorcondi t
ionalpayment,condit
ionedont heinstrumentbei nghonouredon
mat uri
ty.Thelawi scl
eart
hatpay mentbynegot i
ableinstrumenti sprimaf aciecondit
ional.I
tis
wher etheintent
ionoftheparti
esisthatsuchpay menti sabsolutet hatt
hepr i
maf aci
ev i
ewi s
excluded.Wher epaymentisbynegot i
ableinst
rumentt helegal positi
onisclearlyputin
Benjami n'
sSaleofGoods( opcit)par
agraph695t hus:

'
Thesel l
er'
sremedytosuef ort
hepri
ceissuspendedduri
ngthecurr
encyoftheinst
rumentIf
theinstr
umentishonouredatmaturi
ty,t
heamountexpressedt
herei
niseff
ecti
velypai
d;i
fiti
s
dishonoured,
thesel
ler
'sremedyrev
ives.
'

Thecommonsensev i
ewrecei
vesaddit
ionalst
atutory,
supporti
nsecti
on38( 1)(
b)oftheAct
whichprovidesthatthesell
erofgoodsisdeemedt obean" unpai
dsell
er"withi
nt hemeani
ngof
theActwhenabi l
lofexchangeorothernegoti
ableinst
rumenthasbeenr ecei
vedasconditi
onal
payment ,
andt heconditi
ononwhichitwasreceivedhasnotbeenf ul
fi
ll
edbyr easonofthe
dishonouroftheinst
rument

[
2000]15NWLR

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rot
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v.(
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)Lt
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749

orot
her
wise.

Acceptanceofanegoti
ablei
nstrument,normallyt
reat
edascondit
ional
paymentofthe
purchasepri
ce,l
eadstowaiverofthesell
er'
slienfort
heperi
odofthecurr
encyoft
he
i
nstrument.Thelawisst
atedinBenjamin's(opcit
)paragr
aph1066asfoll
ows:

'
Wher et hebuy eri
sgivencreditfortheperiodofabillofexchangeorot hernegotiable
i
nstrumentgi venbyhi mtot hesell
erinpay mentofthepr i
ce,thesell
er'
sl i
eniswai vedforthat
peri
od, sinceacceptanceofanegot iableinst
rumentisnormal l
ytreatedascondi ti
onalpayment .
Butif,beforethegoodsar edeliver
edt othebuyerthenegot i
ablei
nst r
umenti sdishonoured,or
thebuy er,becomesi nsol
vent,t
hesel l
er'
slienwil
lrevi
ve,sothathemayr etainthegoodsunt il
he
i
spai d.(Ital
i
csi smine)TheCour tofAppeal waswr onginthev i
ewi theldthatpaymentby
negotiableinstrumentsevenaf t
ertheinstrument
swer edi
shonour eddestroyedtheunpai d
sell
er'
sl i
en."

28.

OnDut
yoncour
ttogi
veef
fectt
ocont
ractofsal
ereducedi
ntowr
it
ing-

Acont
ractofsalereducedi
ntowrit
ing,suchasExhibi
t1intheinst
antcase,
mustbeconst
rued
andgi
veneffectt
ol i
keanyotherwri
ttencont
ract
.(P.783,par
a.H)

29.

OnRel
evantf
act
orsi
ndet
ermi
ningt
hei
ntent
ionofpar
ti
esi
nacont
ractofsal
e-

Byvir
tueofsect
ion17(2)oft
heSal
eofGoodsAct
,1893,
forthepur
poseofascertai
ningthe
i
ntent
ionofthepart
ies,r
egar
dmustbehadtot
heter
msoft hecont
ract
,theconductofthe
par
ti
esandt
heci
rcumst
ancesoft
hecase.(
Pp.
778,
par
a.A;
784,
par
a.B)

30.

OnPr
inci
plegui
dingi
nter
pret
ati
onofwr
it
tencont
ract
s-

Inint
erpret
ingthepr ov i
sionsofawrit
tencontr
act,noaddit
iontheretoorsubtr
acti
ont herefr
om
i
sper missi
ble.Thewor dsusedmustbegi veneffecttoandnowor dshouldbeignoredi nthe
i
nterpret
ati
onoft hei ntenti
onoftheparti
es,ot
herwisethecourtwill
beseenasr ewri
t i
ngt he
agreementbet weent hepar ti
es.I
ntheinst
antcase,thepart
iesareclearl
yboundbythe
provi
sionsofthesal eagr eementExhibi
t1.Thecourthasnopowert orewri
tet
heagr eement .
(Pp.772,para.
A; 784, paras.G-H)

31.

OnWhet
herpar
ti
esmaybycont
ractv
aryr
ight
sconf
err
edonbuy
erorsel
l
eri
nacont
ractofsal
e
-

Right
swhi chhavebeenconferr
edonsel l
ersorbuyersundertheSaleofGoodsAct,1893ar
e
ri
ghtsthatari
seunderthecontractbet
weent hepar
tiesbytheimpli
cati
onoflaw.Secti
on55of
thatAct,however
,pr
ovidesthatwhereanyright,
dutyorli
abil
i
tywouldariseundera

750

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

contractofsaleofgoodsbyi mpli
cati
onoflaw, i
tmaybenegat ivedorvariedinteral
iaby
expressagr eementbetweentheparti
es.Accordingl
y,i
fthecontractbetweent heparti
es
expresslycreatesaMen,arightofret
enti
onoft hegoods,repossessionthereoforotherform of
securit
yf orthepri
ce,
suchexpresstermswi l
lprevai
lover,
andt heref
oreexcludet hestat
utory
i
mpli
cat
ionofal
ienet
c,atl
eastt
otheext
entofanyi
nconsi
stencywi
tht
heexpr
esst
erms.(
P.
786,
par
as.B-
D)

PerI
GUH,
J.S.
C.atpage788,
par
as.F-
G:

"Exhibi
t1makesexpr essprovisi
onsf orther ightsoflienandimmedi atepossessi onofthe
goodsi ni
ssuer eservedtotheappellantast ermsofsecur it
yf ort
hecont ractpr i
ce.Itseemsto
met hatevenifthegoodswer eatallmat erialtimesi nthepossessionoft he1str espondent,
therewasclearlybyexpr essagreement ,reser v
edt otheappellantast hesell
er ,andasbetween
i
tselfandthe1str espondent,t
hebuy er, aspeci alpropert
yorinterestinthepl antand/or
equipmentuntilthefullpri
cewaspai d.Thi spr i
cewasnev erfull
ypaidandIent ertai
nnodoubt
thattheappel
lantr i
ghtl
yex er
cisedit
sr ightsov erthegoodsasagr eedt obyt hepar ti
esinExhi
bit
1.SeeBenjami n'sSaleofGoods, 1974Edi tion,paras.1079)and1083. "

32.

OnRi
ght
sofpar
ti
est
ocont
ractont
hei
rownt
ermsanddut
yoncour
tini
nter
pret
ingsame-

Part i
est oacont ractenjoytheirfr
eedom tocont ractont heirowntermssol ongast hesearenot
i
llegal and/
orunl awf ul
.Thet ermsofacont ractbet weent heparti
esarethereforeclothedwi th
somedegr eeofsanct i
tyandi fanyquestionshoul dari
sewi thr
egardtothecont ract,theterms
i
nanydocumentwhi chconst i
tut
esthecont ractareinvariablyt
heguidetothei nterpretat
ion.
Thus, whenpar tiesent eri
ntoacont ract
,theyar eboundbyt hetermsofthecont ractandi t
cannotbeany thingbutunf airtoreadint
osuchacont ractthetermsonwhi cht herehasbeenno
agreementsav et ermswhi chmayar isebyimpl icati
onofl awandi nrespectofwhi cht her
ei s
nothingi nthecont ractthatexpressl
yprov i
desot herwise.[Babav.NCATC( 1991)5NWLR
(Pt.192)388r eferredto](P.788, par
as.D-E)

33.

OnWhenaper
sondeemedt
obei
nsol
ventunderSal
eofGoodsAct-
Bysection62( 3)oftheSaleofGoodsAct ,1893apersonisdeemedtobei nsol
ventwit
hinthe
meaningoft heActwhohasei therceasedt opayhisdebt
sintheordinar
ycourseofbusiness,
or
cannotpayhi sdebtsast heybecomedue, whetherhehascommi t
tedanactofbankruptcyor
notIntheinstantcase,the1strespondentwasunabl etopayitsdebt
swhent heybecomedue
andwast heref or
einsol
vent.(
P.779, paras.B-D)

[
2000]15NWLR

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ecTech.Ser
v.(
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)Lt
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751

34.

OnNat
ureofr
eli
efofspeci
fi
cper
for
manceandwhenwi
l
lber
efused-

Adecr eeofspecif
icper
for
mancei saform ofr eliefthati
spurelyequit
ableinori
ginandisone
oftheearli
estexamplesoft
hemaxi mt hatequityact sinpersonam.Thef undamentalr
ulei
s
thatspecif
icperf
ormancewil
l notbedecreedift hereisanabsoluteremedyatlawi nanswert
o
theplaint
if
f'
sclai
m, t
hati
stosay ,wher
et heplaint i
ffwouldbeadequatelycompensatedbythe
commonl awremedyofdamages.Thej urisdi
ctioni nspecif
icperf
ormancei sbasedonthe
i
nadequacyoft heremedyatlaw.(P.790,paras.B-C)

PerI
GUH,
J.S.
C.atpage790,
par
as.G-
H:

"I
nthepr esentcase, itcannotbedi sputedt hatt herei sanabsol uteremedyatl awforthe
all
egedbr eachcompl ainedofbyt he1str espondenti nthatthe1str espondentwoul dnotonly
beadequat el
ycompensat edbyt hecommonl awr emedyofdamages, i
tdidinfactmakeacl aim
fordamagesf orthebr eachcompl ainedof .Itisalsocl eartomet hatt hecontractsoughttobe
specif
icall
yenf orcedisper sonalinnat ureand/ orinv olvetheperformanceofper sonalserv
ices.
Thecont ractissimpl ythatofhiringandser vicebet weent he1str espondentandt heappellant
forthetransportationoft heplantandequi pmentf rom Kont agoratoKadunaatanagr eedf ee.I
t
wasanempl oymentand/ oramast erandser vantcont ractI
nal l
theseci rcumstances,i
tisclear
tomet hatt hecour tbelowwas, withrespect ,iner rortohav edecr eedspeci f
icperfor
manceof
suchacat egoryofcont ract'
'
35.

OnWhenspeci fi
cperformanceofcont r
actwill
notbegr anted-Contract
swhi chareper
sonalin
natureorwhichi
nv ol
veperformanceofpersonal ser
viceswi l
lnotbespecifi
call
yenfor
ced.This
i
sbecausecour t
sdonotenf or
ceagreementsst r
ictl
yper sonali
nnature,whethert
heyare
agreementsofhir
ingandser vi
ce,bei
ngthecommonr elati
onofmast erandservantorwhether
theyareagreementsforthepurposeofpleasure.(P.790, par
as.E-F)

36.

OnRel evanceofconductofpl ainti

ffinacl aimf orperpetualinj
uncti
on-Thecour twill
onl ygrant
aperpetual i
njunctionatthesuitofapl aintiffi
nsuppor tofar i
ghtknownt olaworequi t
y.The
conductofapl aint
iffmustalsobet akeni ntoconsi derati
onindet er
mi ni
ngwhet herornott o
grantaninjunct i
on.Theplainti
ffmustcomet oequitywi t
hcleanhandsandi f,therefore,heisin
breachofhi sownobl i
gati
ons,hewi l
lnotbegr antedinjunct
ion.Inthesamev ein,hewhocomes
toequitymustdoequi ty.Accordingly,aplaintif
fwi l
lnotsucceedi nhisclai
mf orinjucti
oni fheis
unableorunwi lli
ngt ocarr
youthi sownobl igations.(Pp.790-791,paras.H-B)

PerI
GUH,
J.S.
C.atpage791,
par
as.
B-C:

752

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

"I
nt hepresentcase, nori
ghtknownt ol aworequi tywasest abl
ishedbyt her espondentov erthe
plantand/ orequipmentinissue.Thecour tbelowdi dnotdi stur
bt hefindingoft hetrialcourt
thatthe1str espondentfail
edtof ulfi
l
l I
tsobligat
ionsunderExhi bit1ast her ewasan
outstandingdebtofN635, 059.78r epresenti
ng60%oft hepur chasepr i
ceoft hepl antand
equipmentIhav ealsofoundthatnol egal orequitableclai
m wasest ablishedbyt he1st
respondenti nrespectofthegoodsandt hattheappel l
antact edwi t
hinitsst at ut
oryand
contractualri
ghtsindisposingofbysal ethesaidpl antandequi pmentIt hinkt hattheequi table
doctri
nest hathewhoseeksequi tymustdoequi ty' andthathewhocomest oequi t
ymustcome
withcleanhandsar eappli
cableint hi
scaseandar esuffi
cienttodef eatt hecl aimsoft he1st
r
espondentf
oranyequi
tabl
erel
i
efs"

37.

OnWhet
hercour
tcangr
antar
eli
efnotcl
aimedormor
ethani
scl
aimed-

Acour toflawmustnotgr antt

oapar tyar el
iefwhichhehasnotsoughtorwhi chismor ethan
hehascl aimed.Itisnott hefuncti
onofacour toflawt omakeagr atui
tousaward.Suchan
awar dwillbeincompet entIntheinst
antcase, theor dermadebyt heCourtofAppealthatthe
appellantshoulddeli
vert heequipmenttot he1str espondentsubj
ecttothelat
terpayingthe
outstandingpriceofthegoodswasnev erclaimedbyt he1str
espondent.I
twast her
efore
gratui
touslymadebyt heCour tofAppeal andt her
eforeincompetent.(
Pp.775,parasA-B;791,
paras.F-G)

38.

OnBi
ndi
ngnessofpl
eadi
ngs-

Part
iesareboundbyt hei
rpleadi
ngsanditisthecasetheypr esentont hebasisofthose
pl
eadingsthatmustbeconsi der
edbythecour t
soflaw.Inthei nstantcase,t
hedefenceof
waiverwasnotpleadedbyt he1str
espondentnorwasev idencel edont hepoint
.Noquest i
onof
waiverther
efor
earisesint
hecase.TheCour tofAppealwast herefor
ewr onginhol
dingthatthe
appell
anthadwaiveditsri
ghtofli
enand/orreposessi
onoft hegoods.( P.791,par
as.D-E)

39.

OnPr
opr
iet
yoff
ormul
ati
ngmor
ethanonei
ssuef
rom agr
oundofappeal
-

Thepurposeoff
il
ingabriefistostat
ewi
thaccur
acy,br
evit
yandpreci
sionwhat
everisessent
ial
tocl
earandadequateunderstandi
ngoft
hequest
ionswhichar
erequir
edtobeconsideredby
t
hecourt
.Iti
sther
efor
einel
egantt
ofor
mul
atemor
ethanonei
ssue,
from agr
oundofappeal
.
(
Pp.775,
paras.H-
A)

[
2000]15NWLR

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rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

753

40.

OnNeedt
oNi
ger
iani
seal
lst
atut
esofgener
alappl
i
cat
ion-

PerKUTI
GI,
J.S.
C.atpage775,
par
as.C-
D:

"I
tisnotewort
hytoobserveher
enowt hattheAct,
hithert
oar eceivedEngli
shstatut
eofgeneral
appli
cati
oninKadunaState,
hassi ncebeenNigeri
anisedvidetheSal eofGoodsEdictNo.15of
1990.Thisi
sasitshouldbe.Al
l suchlawsshouldbeNi geri
anisedassoonaspossi bletoenabl
e
usknowwhatl awsactual
lygovernuswi t
houthavingtotravelall
thewayt oEnglandforthe
purpose!
"

DI
SSENTI
NGOPI
NIONOFAYOOLA,
J.S.
C

1.

OnWhencont
ractofsal
econdi
ti
onal
-

From t
hepr
ovisi
onsofsect
ion1(3)oftheSal
eofGoodsAct
,foracont
ractofsal
etobe
condi
ti
onal
thepart
iesmusthaveagreed:
(
a)

t
hatt
het
ransf
erofpr
oper
tyi
nthegoodsi
stot
akepl
aceataf
utur
eti
me;
or

(
b)

t
hatt
het
ransf
erofpr
oper
tyi
nthegoodsi
ssubj
ectt
osomecondi
ti
onst
her
eaf
tert
obef
ulf
il
led.

(
P.795,
par
as.E-
D)

2.

OnWhet
hermer
efactt
hatpay
mentofpr
icedef
err
edmakescont
ractofsal
econdi
ti
onal
-

Bysect i
on62( 1)oft heSal eofGoodsAct ,1893acont ractofsal eincludesanagr eementt osel l
aswel lasasal e.Butbet weent het wo, thereisnoi ntermedi atecat egory .Thus, thefactt hat
paymentofpr icei sdeferredoragr eedt obebyi nst al
lment sdoesnotbyi t
sel fmakeacont ract
ofsaleacondi tionalsale.Inor dert odet erminewhet heracont ractofsal ei sacondi ti
onal sale,
thetotali
tyoft heagr eementmustbeconsi dered.Wher et herei sexpr esst erm ast opassi ngof
propertyther ei snopr oblem.I tiswher et hereisnosuchexpr esstermt hatr esortmustbehad
toaconst r
uct ionoft heagr eement ,ifinwr iti
ng,todeducet hei ntentionoft hepar ti
es.Usual ly,
suchcondi t
ionsar e,forexampl e,inferredfrom t ermsenj oiningt hebuy ert oi nsurethegoods
againstrisks, orempower ingt hesel l
ert oinspectt hegoodst oensur eitsgoodcondi t
ion, or
requir
ingt hegoodst ober egisteredi nthesel l
er'sname.I nt hei nstantcase, itwaser roneous
forthetri
al cour ttohav econcl udedt hatthecont r
actofsal ewasacondi tional sal
e.Thatcour t
seemedt ohav ebeenoft hev i
ewt hatcr edi
tsal eisacondi t
ional sale.[Adigunv .Amao( 1979)
LRN54r eferredt o.(Pp.795- 796, paras.F-B)

PerAYOOLA,
J.S.
C.atpages796-
797,
par
as.A-
C:

"
Int
hepresentcasenei
thert
hecourtbel
ownorthi
scourthadt
hebenef
itoft
her easoni
ngof
t
hetr
ial
Judget hatl
edhimtoconcl
udethatt
hecontr
actofsal
ewasacondit
ional
754

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

sal
e.Heseemedt ohavebeenoft heviewt hatever
ycredi
tsalei
sacondit
ionalsale.Thati
s
err
oneous.Itneedstobestatedthatwher ethenatureofatr
ansact
ionort
hei ntenti
onofthe
part
iesistobededucedfrom constructi
onofanagr eementinwri
ti
ngorfr
om t hetermsofa
contractt
hetri
alcour
tshoulddemonst ratefrom whicht
ermsandbywhatconst ructi
onsuch
i
ntentioni
sdiscover
ed.

Bet hatasitmay ,t
heCourtofAppeal consi
deredt hetermsoft hecontractwher ebythe
defendantshallhaveli
enovertheequipmentunt iltheplai
nti
ffpaidthepur chasepriceinfull
and
thedefendanthadt heri
ghttorepossesstheequi pment, i
nspecie,i
fthei nstal
mentswer enot
paid.Notwithst
andingthoseter
ms, theCourtofAppeal heldthatthedef endanthad' behavedin
awaywhi chestabli
shedbeyondalldoubtthatithadt r
ansfer
redt heti
tl
e' totheplai
nt i
ff
..
..

I
nmyopi nion, thequest i
onperti
nenttothedet erminati
onoft henat ureoft hetransact i
oni s
whetherther eisanyt er
m ofthecont r
actwhichmakest hecont ractofsal eacondi tionalsale.
Thesubmi ssionofl earnedcounsel f
orthedefendantt hatthetermsoft heagr eementgr ant
inga
l
ienandar ightt otakeimmedi atepossessionoft hegoodst othedef endanti ncaseoft he
plai
nti
ff'
sdef aul tarecondit
ions,is,
inmyopi nion,misconceived.Thoset ermsgav ecer tain
ri
ghtstot hedef endantanddidnotbyt hemselv esindi
catethatt heplai ntif
fshoulddoany t
hing
i
nor dertoacqui repropert
yinthegoods.Thepr operapproacht ot her elevanceoft hetermsi s
whetherthegr anttot hedefendantofli
enov erthegoodsandr ighttot akei mmedi ate
possessionoft hegoodsi ncaseofdef aultofpay mentraiseani nferencet hatdelayi npassing
ofpropertyunt ilpaymentoff ull
purchasepr i
cebyt heplainti
ffwasi ntended. "

3.

OnNat
ureandef
fectofal
i
en-

Ali
enismerel
yarightt
oretai
nthegoodssubj
ectt
oitunt
ilt
heamountoftheli
enhasbeenpai
d.
Theli
endoesnotgiv
etotheholderanypr
oper
tyi
nthegoods.(
P.797,
paras.D-
E)
PerAYOOLA,
J.S.
C.atpages797-
799,
par
as.C-
C:

"Thatissuefal
lsi
ntoproperper
spect
ivewhenthegeneral
natur
eofal i
enisappreci
ated.The
dissenti
ngjudgmentofFlet
cherMoult
onL.J.
,i
nTr ust
eeoftheProper
tyofF.Lordv.Great
EasternRail
wayCompany[ 1908]2KB54wher eatpp.63-64explai
nsthenatur
eofal ienunder
Englishlawthus:

'
AlienunderEngl
i
shlawisav erypecul
i
arri
ght
,buti
tspr
eci
senat
urehasbeenconcl
usi
vel
y
set
tledbyalongl
ineofdeci
sions.I
ncontr
astt
otheoper
ati
ons

[
2000]15NWLR

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rot
ecTech.Ser
v.(
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)Lt
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755

ofpl edgi ngorpawni ngt hecr eationoft hel i

endoesnot ,str
ictlyspeaki ng, giv
et othehol derany
proper tyi nthegoodssubj ecttoi t:perLor dEsheri nYungmannv .Br iesemann.I ti
smer elya
ri
ghtt or et ai
nt hegoodsunt ilt
heamountoft hel ienhasbeenpai d.Dur ingt heper iodt hatt he
goodsar esor etainedt het rueownermaybei ncompl et epossessi onoft hegoodsandhav e
andexer ciseov ert hem mostoft heor dinar ypower sofanowner ;andi ndeedi nmyopi ni oni tis
correctt osayt hatt her ei snot hingi nEngl ishlawwhi chpr event shi spossessi ngandexer cising
anyandev eryr i
ghtofanowneri npossessi onwhi chi snoti nconsi stentwi ththemai ntenance
byt hehol deroft hel ienofhi sri
ghtt or etain.Takef orexampl et hebestknownandmost
fami li
ari nstanceofal ien, namel y ,t
hel ienofani nnkeeperov ert hegoodsofat ravellerathi si nn
fortheamountofhi schar ges.Thet ravellerisinact ual possessi onofal lhisgoods.Hewear s
thecl othes; her eadst hebooks.Hecanputt hem i nhi sownboxandl ockt hem up, anddur ing
thet raveller'
sst ayi nt hei nnt hei nnkeeperhasnor ighttogetatt hem nort ot aket hem i ntoown
personal possessi onsoast odepr ivet heowneroft heiruse.Theowneri sevenent it
ledt o
certainl egal ri
ght sandr emedi esi nrespectoft hosegoodswhi chdependonpossessi on.For
exampl e, i
famani nt henextr oom wer et odet aint hosegoods, t het rav ell
ercoul dbr ingdet inue
forthem.Not hi ngt hatisdonewi ththegoodsshor tofr emov ingt hem f rom thehot elaffectst he
existenceoft hel ien.Theownermayl ockt hem upi ncupboar dsi nhisr ooms, ofwhi chheal one
hast hekey ,
andi ft hei nnkeeperwer et oal lottothet rav el
l
eral ockeri nt hecor r
idorori nt he
sampl e-room oft hehot elf orthepur poseofhol dinghi sgoodsi twoul dnot ,i
nmyopi nion,
prej
udiceoraffectthelienov erthem,eventhought hesacredword" demise"wereusedt o
descri
bet hetr
ansaction,mor eespecial
lyift
hat" demi se"wasspecifical
l
yforthesolepur pose
ofholdinggoodswhi chwer etoremainsubjecttot helien.But
,alt
hought heinnkeepernotonly
maybutundercer taincircumst ancesmustt husleav ethegoodsint heactualpossessi
onoft he
owner,thereareli
mi t
s,whi chhemaynotpasswi thoutlosinghi
slien.Hemustnotper mitthe
trav
ell
ertotakethegoodsoutoft heInn,or,
t oputitmor egeneral
ly,hemustnotdoany thing
thatamount st
oanabandonmentoft hepowert o

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exer
cisehi
sri
ghtofr
etent
ion.
'

Then,
atpage71hesai
d:

'
AsIhav esaid,
al i
engiv
esnopr opert
yinthegoods,nordoesitenti
tl
etheholdert
otake
possessi
onoft hegoods,f
oriti
mpl i
esthattheyareal
ready
,inhispossessioni
nthesenset
hatI
haveexplai
ned,andnotintheuncontrol
ledpossessi
onoftheowner '
(It
ali
csmine)

I
tispert
inenttoobservet
hattheHouseofLordsal
lowedt
heappeal
inG.E.Ryv.Lords[
1909)1
AC109..
..Normall
yalieni
mpliesthatpr
opert
yint
hegoodsisi
nanot
herothert
hantheperson
hol
dingtheli
en.Secti
on39(1)provi
desthat
:

'
Subjecttotheprovi
sionsoft
hisLawandofanywri
tt
enlawinthatbehalf,
notwit
hst
andi
ngthat
thepropert
yinthegoodsmayhav epassedt
othebuyer
,theunpai
dsellerofgoods,
assuch,has
byimplicat
ionoflaw-

(
a)

al
i
enont
hegoodsorr
ightt
oret
aint
hem f
ort
hepr
icewhi
l
ehei
sinpossessi
onoft
hem .
..
.'
Bysecti
on39(2)whenpr opert
yingoodshasnotpassedt
ot hebuyertheunpai
dsell
erhasri
ght
towit
hholddel
iver
y.Comment ingonsecti
on39(2)i
twasstated,
quiteri
ghtl
y,i
nBenj
amin'sSal
e
ofGoods[1997Editi
on]paragraph15-029that
:

'
Alien,str
ictosensu,canar
iseonl
ywhenthepr
opert
yheldbel
ongst
oanother
;hence,t
heright
ofwithhol
dingdeliver
yexer
cisedbyt
heunpai
dsel
lerov
ergoodsinwhi
chhestil
lhaspropert
y,
i
saquasi -l
ien.
'

Enough,Ibeli
eve,hasbeensai dtoshowt hattheter
m astoliencontainedintheagreementof
thepart
iesdoesnotbyi tselfraiseanyinf
erenceofani nt
enti
ont odelaythepassingofproper
ty
tothebuyer.I
fany t
hing,
t heinferencewhichitrai
sesisthatwhichisconsistentwit
hthenatur
e
ofli
en,andthatis,t
hatproper tyhaspassedt othebuyer.

Bytheagreementoftheparti
est hedefendantwasgi venar ightt
o'takeimmediatepossessi
on
ofthoseproperti
esi
nspeciethatr emainsunpaidforwithinthesubjectoft
histr
ansaction
wit
houthindranceandwit
houtr ecourse'shouldtheplai
nti
fffailt
opayanyoft heagreed
i
nstalmentswithi
nonemont hoft heduedat e.Idonotinterprett
hisri
ghtassuggestingan
i
ntenti
ontodelaypassi
ngofpr oper t
ytotheplainti
ff
.

Theent
ir
eagreementmustber
eadasawhole.Bytheagr
eementt
hepl
aint
if
fboughtt
he
equi
pmentandagr
eedtopayanaddi
ti
onal
agreedpri
ceofN28,
000.
00f
or

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del
iv
eryandanaddit
ional
costofN10,
000.
00f
orcommi
ssi
oni
ngoft
hepl
ant
.Int
erestwas
char
gedfordel
ayedpayment.
"
4.

OnPr operapproachi
ndeterminingthet i
mewhenpropertypassedwhereitisdisput
edwhet her
propert
yhaspassedt othebuy erornot-Whenitidi
sputedwhetherproper
tyhaspassedt othe
buyerornot,theappr
oachwhi chisinaccordwitht
heSal eofGoodsAct,1893isascontainedin
secti
ons17and18oft heAct.Thef ol
lowingpr
oposi
tionsshoul
dguidethecourtindeter
mi ni
ng
theti
mewhenpr oper
typasseswhent herei
sacontractf
orthesaleofspeci
ficorascert
ained
goods:

(
a)

pr
opert
yinthegoodsistr
ansf
err
edt
othebuy
eratsucht
imeast
hepar
ti
est
othecont
ract
i
ntendi
ttobetransf
err
ed;

(
b)

wher
etheter
msoft hecont
ract
,theconductofthepar
ti
esandt
heci
rcumst
ancesoft
hecase
di
scl
osethei
ntent
ionsuchmustbegiveneffect
;

(
c)

wheret
hetermsofthecontr
act
,theconductoft
hepart
iesandthecir
cumstancesofthecase,
donotdi
scl
oseadef i
nit
eint
ent
ionastotheti
meatwhicht hepr
opert
yint
hegoodsi stopass
tot
hebuyer,
thepr
esumpt i
onscontai
nedinsect
ion18oftheActshoul
dapply.

I
nt hei nstantcase,ther el
evantprovi
sionofsect i
on18oft heActisRul e1whichpr ovi
desthat
wher et hereisanuncondi ti
onalcontr
actf orthesaleofspeci fi
cgoodsi nadeliverablestat
ethe
propertyi nthegoodspassest othebuy erwhent hecont ractismade,anditisimmat eri
al
whet hert hetimeofpay mentortheti
meofdel iv
er y
, orboth,bepostponed.I
nt hei nst
antcase,
thereisnot hinginthet ermsofthecont ract
,theconductoft hepart
iesandtheci rcumstances
ofthecaset hatdiscloseanyintenti
ondi ff
erentfrom thatpresumedbyRul e1ofsect ion18.Iti
s
thereforenotacondi ti
onalcontr
actforthesal eoft heequipment.(P.799,paras.C- G)

5.
OnWhenunpai
dsel
l
erofgoodsl
oseshi
sst
atut
oryl
i
eni
nacont
ractofsal
e-

Bythecombi nedprovisi
onsofsections41(1)and43oft heSaleofGoodsAct,1893anunpaid
sell
erwhohasceasedt obeinpossessionoft hegoodsl oseshisst
atut
oryl
ien.Theunpai
d
sell
er'
sri
ghtofliendependsonhi sbeinginpossessionoft hegoodsattheti
meheexer ci
ses
hisri
ghtofl
ien.Thelienentit
lesthesell
ertoretainpossessionbutnott
oregainpossessi
onof
thegoodsafterhehasgi venitup.(P.
801,paras.A-E)

PerAYOOLA,
J.S.
C.atpages801-
802,
par
as.A-
D:

"However
,wasthepossessi
onoft
heequi
pmentunderacont
ractt
otr
ansf
ert
hesamet
o
Kadunaandinst
all
itat

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thepl
aint
iff
'ssi
tether
e,possessi
onofan"
unpai
dsel
l
er"env
isagedi
nsect
ion41(
1)oft
heAct
'
Thatsubsecti
onreads:

'
Subjectt
otheprovi
sionsoft
hisAct,
theunpaidsel
l
erofgoodswhoisinpossessi
onofthem i
s
ent
it
ledtoret
ainpossessi
onofthem unt
ilpay
mentortenderoft
hepr
icei
nthef ol
l
owingcases,
namely:

(
a)

Wher
ethegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;

(
b)

Wher
ethegoodshav
ebeensol
doncr
edi
t,butt
het
ermsofcr
edi
thadexpi
red;
(
c)

Wher
ethebuy
erbecomesi
nsol
vent
'

Bysubsect
ion1ofsect
ion43t
heunpai
dsel
l
erofgoodsl
oseshi
sli
enorr
ightofr
etent
ion
ther
eon-

(
a)

Whenhedel
iv
ersthegoodstoacarri
erorot
herbail
eeorcust
odierf
ort
hepurposeof
t
ransmi
ssi
ontothebuyerwi
thoutr
eservi
ngther
ightofdi
sposal
ofthegoods:

(
b)

Whent
hebuy
erorhi
sagentl
awf
ull
yobt
ainspossessi
onoft
hegoods;

(
c)

Bywai
vert
her
eof
.

I
tisclearf
rom theset
wosubsecti
onsthatanunpai
dsell
erwhohasceasedt
obeinpossessi
on
ofthegoodslooseshi
sst
atutor
ylien.I
twasstat
edinBenjami
n'
s(opcit
)par
agr
aph1068that;

'
Theunpaidsel
ler
'sr
ightofl
iendependsonhi sbeingin'
possessi
on'ofthegoodsatt
heti
mehe
exer
ciseshi
sri
ghtofli
en.Thelienent
it
lesthesell
ertoret
ainpossessi
on,butnott
oregai
n
possessi
onoft
hegoodsaf terhehasgivenitup.
"(Emphasismine)

I
nVal pyv.Gi
bson136E. R737itwashel d,not
wit
hstandingthatt hegoodshadcomei nto
possessi
onofthebuy er
'sagents,whosubsequentl
ydeliver
edt hem tothesell
ertoberepacked,
thatthel
i
enwasl ostbythefir
stdeli
very
, andt
hattheseller
'sl
at erpossessi
onforali
mit ed
purposecoul
dnotcreateanewl i
enforthepri
cewithoutthebuy er'
sagreement.Val
pyv .Gibson
wasdecidedbeforetheActwaspassed.Subsection2ofsect ion41oft heActprovi
dest hat:
"Thesel
l
ermayexer
cisehi
sr i
ghtofli
ennot
withst
andi
ngt
hathei
sinpossessi
onoft
hegoods
asagentorbai
l
eeorcust
odierfort
hebuyer
.'

Cit
ingPoult
on&Sonv .Anglo-AmericanOilCo.Lt
d.(1911)T.L.R.216itwasstatedin
Benjamin'
s(opci
t)par
agraph1070thatasar esul
toftheAct,thesellermayexerci
sehisl
ien
unti
lthepri
ceisf
ull
ypaid,despi
tet
hef actt
hatheacknowledgest hatheret
ainspossessi
onof
thegoodssold

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i
nthecapaci
tyofbai
l
eet
othebuy
er.

Secti
on41(2)iscapableoftwov iews.Oneisthat'
pos-sessi
onofthegoodsasagentorbai l
ee
orcustodi
erforthebuyer'i
ncludesr egaini
ngpossessi
onofthegoodsaftert
hesell
erhaspar t
ed
withi
tandt hebuyerhadalready ,beeninpossessi
on.Theotheri
sthatt
hesewordsappl yonl
y
whenthesel l
erhasnotatanyt i
mepar tedwit
hpossessionofthegoodsbuthasmer el
yalter
ed
thecapaci
tyinwhichhepossessedt hegoods.Thelat
terwil
li
ncl
udeacaseinwhicht hebuyer
i
sinconstructi
vepossessiont hroughhisbail
eeoragentwhohappenstobet hesel
lerin
conti
nuousphy si
calpossessionoft hegoods.Thelatt
erviewist
obepreferr
ed.

Formypart,Idonotr egar
dsecti
on41( 2)asexpandingt heambi tofthestatutor
yli
encreat
ed
bysecti
on39(1).Itismadecleari
nBenjamin's(opcit)paragraph1058, andIagreewit
ht he
vi
ew, t
hatt
heseller'
slienisaqual
if
icat
iononhisdut ytodeliv
erthegoodst othebuyer
.That
dutyi
simposedbysect i
on27oftheActandi sdischargedupondel iv
eryoft hegoodstothe
buyerandceasest obesubjectt
oquali
ficat
ion.

Notwi
thstandingsecti
on41(2)oftheAct
,Iam oftheopi
nionthatthepr
inci
plei
nValpyv.
Gi
bson( supra)sti
l
lappli
est
ot hi
scase.Whenthedefendantdeli
veredt
heequipmenttothe
pl
aint
if
fitlostit
sstat
utoryl
i
enasanunpai dsel
lerovert
hegoods.I t
spossessi
onofthegoods
asbail
eeoftheplai
nti
ffwaspossessi
onbyt hepl
aint
if
fthroughitasbai
lee.Theposi
ti
onis
di
ffer
entfr
om thecaseinwhichthesel
lerhadnotatanyinter
veningper
iodbeenoutofphysi
cal
possessi
on.

Inmyj udgment,thedefendanthavingdeliv
eredtheequipmenttotheplai
nti
ffhadl ostt
he
stat
utoryli
enwhichithadpur suantt osect
ion39(1)oftheAct,not
wit
hstandi
ngt hatit
subsequentl
yregainedpossession, underaseparatecont
ractasabail
eeoft heplaint
if
ffor
purposeoftransport
ingtheequipmentt oKaduna. "

6.

OnWhenl
i
eni
swai
ved-

Li
eni swaivedwherethepar t
ycl
aimstoretai
ngoodsongr oundsdif
ferentf
rom t hoseonwhich
herestshisclai
mf orl
ien,andmakesnoment i
onoflien.I
ntheinst
antcase, evenifthe
defendanthadnotlosthisli
en,i
thaswaivedi
tbyit
sconduct .Theconductoft hedefendant
showedt hati
thadwant edthetr
ansacti
ontocont
inueasifithadnol i
en.Mor eoverfact
sfrom
whichwai v
ercouldbeinferr
edwerepleadedandgiv
eni nevi
dence.(P.802,paras.D-G)

PerAYOOLA,
J.S.
C.atpage802,
par
as.C-
F:

"
Inmyj
udgment
,thatt
hedef
endantassumedacont
ract
ual

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obl
igati
ontotr
ansfertheequi
pmenttoKadunaandinstall
itontheplai
nti
ff'
ssiteandproceeded
toexecutet
hecontractanddeni
edthatithadr
epossessedtheequipmentamount edtowaiver.
Thatthedef
endantwasnegot i
ati
ngfornewter
msofl i
enishardlyconsi
stent,
inmyv i
ew, wit
h
t
heconti
nuati
onofanexisti
ngli
en.Besides,t
hedefendant
,astheexchangeofl
ett
ersbetween
t
heparti
esshows,encour
agedtheplai
nt i
fft
opreparesi
tefort
heequipmentinKaduna,
andt o
t
ranspor
tthedef
endant'
scranetoKontagorapursuantt
otheagreement"

7.

OnWhet
hersel
lerhasr
ightt
oret
akegoodsf
ordef
aul
tofbuy
ert
opayagr
eedi
nst
alment
s
wher
epr
opert
yingoodshaspassed-

Wher eanoutri
ghtsal
eofgoodst akesplaceandt hepur
chasermakesdef aul
tinpayi
ngt he
agreedinstal
ments,t
hesel
lerhasnor ighttor
etakethegoods,eventhoughthepurchaseri
nhi
s
contracthasagreedt
othatcourse.[Yakassai
v.IncarMotors(
Nig.)Ltd.(
1975)1AllNLR287;
Kofiv.Mensah(1930)1WACA76f oll
owed.](
P.803,para.A)

PerAYOOLA,
J.S.
C.atpages803-
804,
par
as.
C-C:

"Thiscourthasnotbeeni nvi
tedtodepartfr
om thedecisioninYakassai
'scase.Al lt
hathasbeen
attemptedbycounsel forthedefendanti
stodisti
nguishitbecause,ashear gued, the
transact
ionsinYakassai andKofiwerecondit
ionalsal
es.InregardtoYakassai '
scasei twas
saidthatthereasonforthedecisionwasthatthetri
aljudgeshouldnothav ef oundt hatt
hesal
e
wasacondi t
ionalsal
ewhensuchwasnotpl eaded.Inmyopi nion,t
hesedistinctionsdonothold.
Bot hKofi
'scaseandYakassai '
scaseshowt hatasaledoesnotbecomecondi t
ionalmerely
becauset hepurchasepricewaspay abl
ebyinstall
ment s.

Iti
sexpedi
entt
oobserv
ethatt
hepri
ncipl
einKof
i'
scaseadopt
edandappli
edi
nYakassai
'
s
casefi
ndsuppor
tint
hestat
ementofthelawascont
ainedi
nBenj
amin'
s(opci
t)par
agr
aph
1147asfol
lows;

'
Wher e,fol
lowingthecontractofsal
e,t
hebuy erhasbothpossessi onof, andt
hepr opert
yin,
the
goods,anyr etaki
ngofthegoodsbyt heunpaidsell
erwill(exceptincasesoff r
audor
misrepresentati
on)beaconv ersi
onagai
nstthebuy er.I
nthecases, whichsupportthis
proposi
t i
on,thesell
er,
didnotpurport
,pri
ortotheretakingtoterminatethecontractofsaleon
thegroundt hatthebuyerhadrepudi
atedhisobli
gationsundert hecontractorcommi tt
eda
fundamentalbreach.Woul
dithavemadeanydif
ferenceifhehaddoneso?Iti
ssubmit
tedt
hat
alt
houghdirectauthor
it
yisl
acking,
theassumpt
ionbehindthesecasesi
sthat
,oncet
hesel
ler
haslostbothhispossessi
onandhis

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ri
ghtofst oppagei ntransitu,andhast r
ansf err
edt heproper t
yinthegoodst ot hebuy er,
hehas
nor emedyagai nstthegoodst hemsel ves,andhi sonl yremedyi sclaimf orthepr i
ceorf or
damagesundert hecont r
actTheassumpt ionbehi ndthest atut
oryrulesont heunpai dsell
er's
ri
ght sofl i
enorofst oppagei ntransi t
ui sthatifthepr opertyhaspassedt othebuy erandt he
goodst hemselv eshav ereachedt heact ual possessionoft hebuy erorhisagent ,theunpai d
sell
erhasnof ur therremedyagai nstt hegoods; i
ft hesell
erhadacommonl awpowerof
revest i
ngt heproper t
yinhi mselfbyt erminat i
ngt hecontractevenwher ethebuy erhadl awf ul
ly
obtainedbot hthepr opert
yi n,andpossessi onoft hegoods, thestatutoryrestri
cti
onsont he
remedi esofl i
enandst oppagecoul dbeeasi l
yev aded.Benjaminconsi deredt hat:
whenev erthe
proper tyhaspassedandt hegoodshav ereachedt heactualpossessionoft hebuy er,t
hesel l
er'
s
soler emedyi sbyper sonal act
ion.Hest andsi nt hepositi
onofanyot hercreditortowhom t he
buyermayoweadebt ;
allspecial remedi esi nhisfavourquasel l
erar egone. '

I
tiswor
thyofnot
ethatt
hel
ear
nedaut
hor
sal
sost
atedatpar
agr
aph1147not
e6t
hat
:

'
Anexpresspowerinthecont
ractmightent
it
let
hesell
ert
oretakeort
oresel
li
nthese
ci
rcumstancesbutt
heBil
lsofSaleAct,
1878,mightt
henappl
y.'

Theci rcumst ancesr eferr

edtoarethoseinwhichthesel lerhadl osthispossessi onandhas
transferredthepr oper t
yinthegoodstothebuy er
.Inpassi ng,itiswel ltoobserv
e, fur
ther,t
hat
theabov enot efur t
hersuppor t
sthepositi
onthatprovisionofexpr esspoweri nthecont r
act
entit
li
ngt hesell
ertor etakethegoodsdoesnotbyi tselfraiseani nferencethatthesellerhas
nott r
ansf err
edt hepr opert
yinthegoods.Onthest r
engt hoft hepr inci
plefol
lowedi nYakassa's
case, t
heconcl usiont hatthedefendantwasnotentitl
edt or etaket heequipmentseems
j
ust i
fi
edbyaut horit
y."
8.

OnPowerofsuper
iorcour
tst
ogr
antconsequent
ial
order
sindeser
vingcases-

Thereisusuall
yreservedtothesuper
iorcourtar esi
dualpowertograntanyconsequentialor
der
whichthejusti
ceofthecasedemands.I ntheinstantcase,theCourtofAppealwasrightin
order
ingtheappell
antt odel
i
v ert
heequipmentt othe1strespondentsubj
ecttothelatt
erpaying
theoutst
andingbalanceofthepricet
hereof.(P.805,paras.A-D)

PerAYOOLA,
J.S.
C.atpages804-
805,
par
as.
H-E:

"
Thedef
endantmadeani
ssueoft
hisor
deront
hegr
ound

762

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

thattherel
iefwasnotcl ai
medandt hetrialcourthadnooppor t
unit
yofmaki ngany
pronouncementont herel
ief
.Iti
sunderstandablet hatt
hetrialJudgehav i
ngproceededont he
footi
ngthatt heplainti
ffhadnor i
ghttosuppor ttheenti
reclaim wouldnotproceedtomakeany
consequentialorder.Thereisusuall
yreservedt oanysuperiorcourtar esi
dualpowertogrant
anyconsequent i
al orderwhichthejusti
ceoft hecasedemands.I nthiscase,l
earnedcounselfor
thedefendantont hisappeal,argued,wit
hcommendabl ecandour,thus:

'
Theor derrecogni
sedtheneedoftherespondentt
opayt heunpai
dbalancebef
oredeli
veryt
o
them Thereisjust
icei
ntheorder.'
Afort
ior
itheappell
anthasther
ightt
okeeptheplantand
onlyt
odel i
veritaf
terbei
ngpaid.Ther
eisalsojust
icehere.
Therei snodiffer
encei nt het wor endit
ionoft heor der,thesubstanceofwhi chisthatthe
pl
aintiffisonl
yentitl
edt or egainpossessi onoft heequi pmentifhetenderstot hedefendantt
he
balanceoft hepurchasepr ice.Theconv erseist hatifhedoesnotpayt hepurchasepr i
cehe
wouldnotbeent i
tl
edt or egai npossessi on.Thiswast heunderstandingoftheor derwhich
defendant '
scounsel consider edjustIalsoaddt hatnotonlyistherejusti
ceintheorder,butal
so,
(i
)itreasonablyfoll
owsf r om andr efl
ectst herightclaimedbytheev idencetenderedonbehalf
ofthedef endantandt her ightoft hedef endantt oretaintheequipmentunt i
lpay mentismade;
and( i
i)itci
rcumscribedt hei njunctiongrant edtoshowt hatt
hei nj
unctionagainstdisposalwi
l
l
besubj ecttotheplainti
ffmaki ngpay mentt oregainpossessionoft heequipment .

Besides,t
heor der,thoughrel
atedineffect
,islessoner
oust hananorderforspeci
fic
perfor
manceoft hecont r
acttoinst
all
theequipmentclaimed.Althoughtheorderenjoi
nedthe
defendanttodelivertheequipmenttotheplainti
ff(
subjectt
opay mentofthebalanceof
purchaseprice)itfell
shortoforder
ingthatthedefendantshoulddeli
veri
tatapar t
icul
arpl
ace
ori
nst al
l
ingit.

Inthesecir
cumstances,
ther
eisr
eal
lynomi scar
ri
ageofj
ust
iceoccasi
onedbyt
heor
derwhi
ch
counselforthedef
endanthi
msel
fconcededwasj ust
"

9.

OnRi
ghtofapar
tyt
ojoi
nsev
eral
causesofact
ioni
nonesui
t-

Apar t
yisent
itl
edtojoi
nsev er
al causesofactioninoneact ion.I
tfoll
owst hatthecauseof
acti
ononwhi chtherel
ieffori
njuncti
oninthepr esentcasewasf oundedisquiteseparatefr
om
thatonwhichtheclai
mf ordamageswasf ounded.Thef or
meri sfoundedont hecontractof
salewhil
ethelatt
erisfoundedont hecontractoftransferandinstall
ati
on.(P.
805,paras.G-
H)

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

763
10.

OnWhet
herr
efusal
ofcl
aimf
orspeci
fi
cper
for
manceaf
fectent
it
lementt
odamages-

Whereapartyclaimsinr
egar
dtobr
eachofcontract
,damagesandspeci
fi
cperf
ormance,
ref
usal
ofspecificper
for
mance,
ongroundsofequit
ywil
lnotaf
fecthi
sri
ghtt
othelegalr
emedy
ofdamages.(P.806,par
a.A)

Ni
ger
ianCasesRef
err
edt
oint
heJudgment
:

Adi
gunv
.Amao(
1979)LRN54

Babav
.NCATC(
1991)5NWLR(
Pt.192)388

BookshopHouseLt
d.v
.St
anl
eyConsul
tant
sLt
d.(
1986)3NWLR(
Pt.
26)87.

Bur
aimov
.Esa(
1990)2NWLR(
Pt.
133)406

Ekpey
ongv
.Ny
ong(
1975)2SC.
71

Makanj
uol
av.Bal
ogun(
1989)3N.
W.L.
R.(
Par
t108)192

Ni
gerBenueTr
anspor
tCo.Lt
d.v
.Nar
umal
&SonsLt
d.(
1986)4NWLR(
Pt.
33)117

Obi
omav
.Ol
omu(
1978)3S.
C.1
Oduy
ev.Ni
ger
ianAi
rway
sLt
d(1987)2NWLR(
Pt.
55)126

Ogbuny
iyav
.Okudo(
1979)6-
9SC.32

Ol
urot
imi
v.I
ge(
1993)8NWLR(
Par
t311)257

Yakassai
v.I
ncarMot
ors(
Nig.
)Lt
d.(
1975)1Al
lNLR287

For
eignCasesRef
err
edt
oint
heJudgment
:

Al
umi
nium I
ndust
ri
esVassenBVv
.Romal
pa

Al
umi
nium Lt
d.(
1976)2Al
lE.R.552

Beswi
ckv
.Beswi
ck(
1968)A.
C.58

Bl
oxam v
.Sander
s(1825)4B&C941

Coddi
ngt
onv
.Pal
eol
ogoL.
R.2Exch.193

Combev
.Bond[
1835)4A&E332

Dar
nhouwer&Co.Lt
d.v
.Chr
ist
ian(
1917)KB37
Doakv
.Bedf
ord(
1964)2Q.
B.587

Expar
teChal
mer
s(1873)L.
R.8Ch.App.289

Fel
i
ciana(
1915)59CJ456

Fl
i
ntv
.Br
andon(
1803)8Ves.159

G.E.Ryv
.Lor
ds(
1909)1AC109

Gr
icev
.Ri
char
dson[
18733AC319

Gunnv
.Bokow,
VaughanandCo.(
1875)L.
R.I10Ch

HendyLennox(
Indust
ri
alEngi
nes)Lt
d.v
.Gr
ahammePut
ti
ckLt
d.(
1984)2ALLE.R.152.

Hungmannv
.Br
ieseman(
1892)67L.
T.642

Hut
tonv
.Wat
ti
ng(
1948)Ch.
26

Kof
iv.Mensah(
1930)1WACA76Lor
dv.Pr
ice(
1874)L.R.9Ex54.

Mar
ti
ndal
ev.Smi
th(
1841)1Q.
B.389

MeEnt
ir
ev.Cr
ossl
eyBr
os.Lt
d.(
1895)A.
C.457
Nanka-
Brucev
.Commonweal
thTr
ustLt
d.(
1926)A.
C.77

Pal
merv
.Br
aml
ey(
1895)2Q.
B.405

Par
kerv
.Gossage(
1835)2CM &R617

Poul
ton&Sonv
.Angl
o-Amer
icanOi
lCo.Lt
d(1911)T.
L.R.216

764

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

Poul
tonandSonv
.Angl
o-Amer
icanOi
lCo.Lt
d.(
1911)27T.
L.R.216

Rv
.Saddl
ersCo.(
1863)10H.
L.404,
425

R.
v.War
dLt
dv.Bi
gnal
l2Al
lE.
R.449

ReCl
arke(
1887)36Ch.
D.348

ReLei
th'
sEst
ate(
1866)L.
R.1P.
C.296

Ri
gbyv
.Connol
(1880)14Ch.
D.482
Sengenav
.Poku(
1943)9WACA143

TheBi
net
a(1967)1W.
L.R.121

TheEl
der(
1893)P.
l19

Thomsonv
.Veal
e(1896)LT130

Tr
ust
eeoft
hePr
oper
tyofF.Lor
dv.Gr
eatEast
ernRai
l
wayCo.(
1908)2KB54

Val
pyv
.Gi
bson136E.
R737

Weeksv
.Goode(
1859)6C.
C.(
N.S.
)367

Whi
tel
eyLt
d.v
.Hi
l
t(1918)2K.
B.808

Ni
ger
ianSt
atut
eRef
err
edt
oint
heJudgment
:

Hi
ghCour
tLaw,
Cap.
49,
LawsofNor
ther
nNi
ger
ia,
1963,
S.28

For
eignSt
atut
eRef
err
edt
oint
heJudgment
:

Sal
eofGoodsAct
,1893,
Ss.1,
16,
17,
18,
19,
28,
38,
43,
48&62
BooksRef
err
edt
oint
heJudgment
:

Benj
amin'
sSal
eofGoods(1974)Edit
ionHalsbur
y'
sLawsofEngl
and.4t
hEdi
ti
onVol
.28Bul
l
en
&Leaks&Jacob'
sPr
ecedentofPleadings.

Appeal
:

Thiswasanappeal againstthedeci
sionoftheCour
tofAppealwhichal
lowedthe1st
respondent
'sappealagainstthej
udgmentoftheHighCour
twhichdismissedt
he1st
respondent
'scl
aim.TheSupr emeCour t
,inaunani
mousdecisi
on,all
owedtheappeal
.

Hi
stor
yoft
heCase:

Supr
emeCour
t:

NamesofJust i
cesthatsatontheappeal
:AbubakarBashirWali
, J.
S.C.(
Presi
ded)Idr
isLegbo
Kut
igi,
J.S.
C.(ReadtheLeadingJudgment)
;AnthonyIkechukwuIguh,
J.S.
C.;
Aloysi
usIyor
gyer
Kat
sina-Al
u,J.
S.C.
;Emmanuel Olayi
nkaAyool
a,J.S.
C.(Dissent
ed)

Appeal
No:
SC.132/
1992

Dat
eofJudgment
:Fr
iday
,15t
hDecember
,2000
NamesofCounsel
:T.
K.Agbesanwa-f
ort
heAppel
l
ant

O.A.
R.Ogunde-f
ort
heRespondent

3r
dpar
ty/
RespondentAbsent

Cour
tofAppeal
:

Di
vi
sionoft
heCour
tofAppeal
from whi
cht
heappeal
wasbr
ought
:Cour
tofAppeal
,Kaduna

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

765

A
B

C
D

E
F

H
 NamesofJusti
cesthatsatontheappeal:
UthmanMohammed,J.
C.A.(Pr
esi
dedand
Readt
heLeadi
ngJudgment)
;SaniSali
thAikawa,
J.C.A.
;Mur
it
alaAr
emuOkunola,
J.C.
A.

Appeal
No:
CA/
K/195/
80

Dat
eofJudgment
:Wednesday10t
hApr
il
,1991

NameofCounsel
:O.
A.R.Ogunde-f
ort
heAppel
l
ant

T.
K.Agbesanwa-f
ort
heRespondent

Hi
ghCour
t:

Nameoft
heHi
ghCour
t:Hi
ghCour
tofKadunaSt
ate,
Kaduna

Nameoft
heJudge:
Ibi
yey
eJ.
Sui
tNo:
KDH/
273/
84

Dat
eofJudgment
:Fr
iday
,21stJul
y1989

NamesofCounsel
:O.
A.R.Ogunde-f
ort
hePl
aint
if
f

O.
I.Any
anwu-f
ort
heDef
endant
.

Counsel
:

T.
K.Agbesanwa-f
ort
heAppel
l
ant

O.
A.R.Ogunde-f
ort
heRespondent

3r
dpar
ty/
RespondentAbsent

KUTIGI
,J.S.
C.(
Deli
veri
ngtheLeadingJudgment
):I
ntheKadunaHi
ghCour
t,t
hepl
aint
if
fscl
aims
agai
nstthedef
endantreadasfol
l
ows:-
"
(1)

Per
petuali
njunct
ionr
estr
aini
ngt
hedef
endant,i
tsser
vant
,ofagent
sofot
herof
fi
cer
sact
ingon
i
tsbehalff
rom di
sposi
ngofbysal
eorother
wisetheequi
pments.

(
2)

Damages.

(
3)

Speci
fi
cPer
for
manceofAgr
eementofi
nst
all
ati
onofequi
pment
si.
e.

(
a)

Par
ker5245/
4Cr
ushi
ngpl
antcombi
nat
ion.

(
b)

FodenModel
DumpTr
uck

(
c)

BD440Gener
ati
ngSet
.

(
d)

Spar
epar
tsf
orcr
ushi
ngpl
ant
.

att
heKadunaQuarrysi
teoft
heplai
nti
ffbyt
hedef
endantort
heal
ter
nat
iver
efundofal
lmoni
es
pai
dbythepl
aint
if
ftotheDef
endantonthesai
dequi
pments.
"

Pleadingswerefil
edandexchangedbet
weenthepart
iesandthecasepr
oceededt ot
ri
al.Att
he
tr
ialtheplai
nti
ffcal
ledt
wowi t
nesseswhil
ethedef
endantcal
l
edonlyonewitness.Af
terhear
ing
evidencef r
om bothsidesandtheaddr essesofthei
rcounsel,t
het ri
alcourtadjournedf or
j
udgment .Inaconsider
edjudgmentdel i
veredon21/7/89,thelearnedtri
aljudgeI bi
yeyeJ.af
ter
reviewingalltheevi
dencebeforehi
m, camet otheconclusi
ont hatthetransactionbetweenthe
partieswasacondi ti
onalsal
eandt hattheplai
nti
ffhadactedinv i
olati
onoft hecondi t
ionsof
salei .
einstal
mentalpayments.Thelearnedtri
alj
udge,ther
eforedismissedpl ai
ntiff
sclaimsin
theirentir
etyaslacki
nginmer i
t.

766

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Kut
igi
,J.
S.C.)

B
C

D
E

F
G

H
Ont
he24thJul
y1989,t
hedef
endantsol
dthepl
antormachi
ner
ytoAFCONENGI
NEERI
NGLTD,
t
he3rdPar
tyher
ein.

Di
ssati
sfi
edwit
hthedecisi
onoft
hel
ear
nedt
ri
alj
udge,
thepl
aint
if
fappeal
edt
otheCour
tof
Appeal
,hol
denatKaduna.

Inareser
vedjudgmentdeli
ver
edon10/ 4/
91t
heCourtofAppealunanimouslyal
l
owedt
he
appeal
,setasi
dethejudgmentoft
heKadunaHighCourtandthenproceededtomaket
he
fol
lowi
ngordersinf
avourofthepl
aint
if
f.

"
1.

Aperpet
uali
njuncti
onrestr
aini
ngthedefendantwhetherbyt
hem selves,t
hei
rservant
s,agent
s,
pri
vi
esorot
herr epr
esentat
ivesfr
om sel
l
ing,leasi
ngorother
wisecreati
nganyincumbranceoil
theequi
pmentsubjectmatteroft
hissui
t.

2.

Thatthesaidequi
pmentbedel iv
eredtotheplainti
ffsubj
ectt
othedefendantpay
ingt
heenti
re
sum outst
andingasbalanceofthetotalcostoftheequipment,
taki
ngint
oaccountN381,
160.
00,
thepl
ainti
ffhadsofarpaidtothedefendant.

3.

Or
derr
emi
tt
ingt
hei
ssueofgener
aldamagesbackt
otheHi
ghCour
tforAssessment
.

4.

3r
dPar
tyt
orel
easet
heequi
pment
,ifi
thadt
akenpossessi
onoft
hesame,
for
thwi
th.

5.
N500.
00cost
stot
hepl
aint
if
f.
"

Aggri
evedbythedecisi
onoftheCourtofAppeal,thedefendanthasnowappealedt
othiscour
t
onsevengroundsofappeal.I
tisnotnecessaryt
or epr
oducethem.Itsuff
icest
osaythat
pur
suanttotheRulesofCourt,
theparti
esfil
edandexchangedt hei
rbri
efsofar
gumentwhich
wereadoptedattheheari
ng.

Thesev
enissuesdi
sti
l
ledfr
om t
hegroundsofappeal
andsubmi
tt
edbyt
hedef
endantf
ort
he
det
ermi
nat
ionofthi
scourtar
easfol
l
ows-

"
(i
)

Whet hert
heCourtofAppealwasrightinit
sviewthatOwner
shipintheequipmentpassedt
othe
pl
aintif
fonproperconst
ruct
ionofExhibit1merel
ybecausethedefendanthaddel
iver
edthe
equipmentsatthesit
eoftheplai
nti
ffatKontagor
a.

(
ii
)

Whethert
heCour tofAppeal
wasri
ghtinit
sviewthatacceptanceofnegot
iabl
einst
rument
sas
paymentfortheequi
pmenthadconver
tedthecondi
tionalsal
eoftheseequipmenti
ntoan
absol
utesale.

(
ii
i)

W astheCourtofAppealri
ghti
nitsvi
ewthattheonlyr
emedyopentothedefendantwasan
acti
onf ort
herecover
yofthebal
anceofthesum unpai
dandnotini
tsexerci
seoftheri
ghtof
l
ienorRepossessionoft
heplantwhentheagreementbet
weenthepar
tiesprovi
dedfort
hose
remedies?

(
iv)

WastheCourtofAppealr
ighti
nholdingthatpl
aint
if
fhasest
abl
i
shedal
egal
righti
nthe
equi
pmentastoenti
tl
eittotheEquit
ablerel
ief
ssought?
(
v)

WastheCourtofAppealr
ightinhol
dingt
hatthedef
endanthaswai
vedallt
herestri
cti
ve
condi
ti
onsinExhi
bit1whenthewaiverofthesameasadefencewasnotspeci
ficall
ypleaded
norwereci
rcumst
ancesandf act
samountingtowai
verpl
eadedinanswert
othepl ai
nti
ff'
s
pl
eadi
ngs?

(
vi)

WastheCourtofAppealr
ighti
nmaki nganor
dert
oenf
orcet
hesecondagr
eementwhent
he
r
espondentf
ail
edtoful
fi
lli
tsobli
gat
ion

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

767

B
C

D
E

F
G

undert
hef
ir
stcont
ract
?
(
vii
)

Whethert
heCourtofAppealwasr i
ghtinmakinganorderthatthesai
dequi pmentbedelivered
tot
heplai
nti
ffsubj
ecttotheplai
nti
ffpayingt
heenti
resum outstandi
ngasbal anceoftotalcost
oft
heequipmenttaki
ngintoaccountN381,160.
00theplai
ntif
fhassof arpaidtothedefendant
whensuchrel
iefwasnotplacedbeforethetr
ial
court
."

Theplai
nti
ffoni
tspar
t,submi
tt
edsi
xissuesi
nit
sbr
iefofar
gumentasar
isi
ngf
ordet
ermi
nat
ion
thus:

"
(a)

Whetherhavi
ngregar
dtothepl
eadi
ngsandev
idencel
ed,
thedef
endantest
abl
i
shedanyl
egal
r
ighttotheequi
pmentindi
sput
e.

(
b)

Ifso,whethersuchl
egalri
ghtcoul
dbedefeat
edbyt he"r
ightofl
i
en"or"r
ightt
oimmediat
e
possession"cl
ausesfol
l
owingthefai
l
ureofthepl
ainti
fft
ocompl et
ethepaymentf
orthe
equipment.

(
c)

Whet
herthesai
dri
ght
sofl
i
enand"
immedi
atepossessi
on"hav
ebeenwai
vedbyt
heconductof
t
hepart
ies.

(
d)

Whet
hert
hepl
aint
if
fhasbypl
eadi
ngsandev
idenceest
abl
i
shedt
hedef
enceofwai
ver
.

(
e)

Shoul
dtheCourtofAppealhav
egrantedt
herel
i
eft
hatt
heequi
pmentbedel
i
ver
edt
othe
pl
aint
if
fsubj
ecttothedef
endantbei
ngpaidt
heent
ir
esum?
(
f)

WastheCour
tofAppeal
righti
nhol
dingt
hatt
hepl
aint
if
fhadest
abl
i
shedal
egal
rightt
othe
equi
pment
?"

Ihaveexaminedthetwosetsofissuesandfoundthem tobebasi
call
ythesameev ent
hough
thequest
ionsrai
sedbytheplai
ntif
fappeartobeshortandsucci
nct.1wil
lther
efor
eadoptthe
setofi
ssuesidenti
fi
edbythedefendantformyconsider
ati
onoftheappeal.

Thefact
softhiscasewhi
char
enoti
ndi
sputefort
hepurposesofthi
sappealareassetouti
n
par
agraphs1,2,3,4,
5,6,
7and8oft
hepl
aint
if
fsamendedstatementofcl
aim asfol
l
ows:

"
(1)

Theplai
nti
ffi
saLimitedLiabi
li
tyCompanywi
thi
tsr
egi
ster
edof
fi
cei
nKadunaengagedi
nci
vi
l
const
ruct
ionandotherrel
atedworks.

(
2)

Thedef
endanti
saLimit
edLiabi
l
ityCompanyengagedi
nthebusi
nessofpl
antsal
eswi
thi
ts
headof
fi
ceatLagosandbr
anchesinmajort
ownsi nNi
ger
ia.

(
3)

Thepl
aint
if
fbyv
irt
ueofi
tsbusi
nesswasacust
omeroft
hedef
endant
.

(
4)

Thepl
aint
if
fbyi
tsL.
P.O.No.0358of8t
hFebr
uar
y1978madeor
der
ed:

(
a)

Par
ker5245cr
ushi
ngpl
antcombi
nat
ion
 (
b)

FodenDumpTr
uck

(
c)

BD440440KVAgenerat
ingsetf
rom t
hedef
endant
.Thepl
aint
if
fshal
latt
hehear
ingoft
hissui
t
useandr
ely
,oni
tsabovestat
edL.P.
O.

(
5)

Theplai
nti
ffst
atest
hatt
het
otal
val
ueofi
tsor
derment
ionedi
npar
agr
aph4abov
ewasas
st
atedbelow:

(
a)

Par
ker5245/
4Cr
ushi
ngPl
antcombi
nat
ionN476,
600.
00

768

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Kut
igi
,J.
S.C.)

A
B

C
D

E
F

H
(
b)

FodenModel
DumpTr
uck

N84,
000.
00

(
c)

BD440Gener
ati
ngset

N66,
000.
00

(
d)

Spar
epar
tsf
orcr
ushi
ngpl
ant N38,
000.
00

(
e)

Tr
anspor
tat
ionofEqui
pmentt
oKont
agor
a

N28,
000.
00

(
f)

Commi
ssi
oni
ngFee N10,
000.
00
 N702.
600.
00

(
6)

Thepl
aint
if
ffur
therstatest
hattheequipmentorder
edabovementionedinparagraph(4)abov
e
wastobedeli
veredattheplai
nti
ff
'sconstr
uct
ionsit
eatKontagor
abyt hedefendant.

(
7)

Theplaint
iffinviewofpar agr
aph(4)abov eunder
tookbyitslet
terOf28t
hMarch1978topay
thedefendant( t
hesum ofN702, 900.00fort
hesupplyoftheequipmentsor
der
edandabove
mentionedinpar agraph(5)ofthestatementofcl
aim,subjectt
ot er
msandcondi
ti
onsstat
edin
thesaidplainti
ff
'slett
erof28thMar ch1978.

ThePlaint
if
fshal
latt
hehear
ingoft
hissui
tuseandr
elyoni
tssai
dlet
terof28t
hMar
ch1978t
o
theDefendant
.

(
8)

Theplai
nti
ffst
atest hatitmadeadownpay mentofN281,160i.e40%oft hetotalsum f
orthe
equi
pmentment ionedinpar agraph(5)abovewherei
nthedef endantproceededandinstal
led
theequi
pmentatt heplainti
ffssiteatKontagor
a.Thepl
aintif
fshallatthe1hear i
ngofthi
ssuit
useandrel
yoilthedef endant'
sl et
terof29thApri
l
,1978acknowl edgingrecei
ptofthepayment
afor
ementi
onedbyt heplai
ntiff
'.

Thesepar
agraphsoft
heamendedstat
ementofcl
aim wereadmit
tedi
nPar
agr
aphs2and6of
theamendedstat
ementofdef
encewhi
charesetoutasfoll
ows:
-

"
(2)
Thedef
endantadmi
tspar
agr
aphs1,
2,3,
4,5,
6and7oft
hest
atementofcl
aim.

(
6)

Thedef
endantadmit
spar
agraph8ofthest
atementofcl
aim butav
ersthatot
hercondi
ti
onof
sal
escont
ainedi
nthesal
esagreementwer
enotful
fi
ll
edbytheplai
nti
ff
."

Oneot herf
actwhichisnoti
ndisputeinthiscaseisthatatastagethedef endantagreedto
mov etheequi
pmentf r
om KontagoratoKadunaatpl ai
ntif
f'
srequestforaf eeofN30,000.00
whichwaspaid.Thedefendantnowt ookadv ant
ageoft hi
stoeffectaseizureofthe
equipmentsoilt
hegroundthattheplai
nti
ffhadfail
edtopayt i
pther emaininginst
almentsfor
theequipmentsasprovi
dedinthesalesagr eementbetweenthepar t
ies.

Theplainti
ffi
nparagraph7ofi tsamendedst at
ementofclai
m abov ehadpleadedit
sownl et
ter
tot
hedef endantdated28t hMar ch1978andt hati
twoulduseandr el
yoni t
.Thedefendant
agr
eedwi t
hit
.Thatwast heSalesAgreementbetweenthepart
ies.I
twast enderedandadmitt
ed
asExhibit1atthetr
ial.Exhibi
t1i sat
wo( 2)pageddocument.1wi l
lseti
toutin

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

769

A
B

D
E

F
G

H
f
ull
thus:

"
28Mar
ch1978

Af
rot
ecTechni
cal
Ser
vicesNi
g.Lt
d.,

P.M.B.1061,

Oshodi
,

LagosSt
ate.

DearSi
rs,

SUPPLYOFI
TEMSOFPLANTANDEQUI
PMENT

Weher ebyuncondi t
ionall
yandir
rev
ocablyunder-
taketopayAf r
otecTechni
cal Ser
vicesNiger
ia
Limi
ted( her
einaf t
errefer
redt
oasAf rot
ecthetotalsum ofN702,900.
00(Sevenhundr edand
twothousand, ninehundredNair
a)inconsi
derat
ionoftheirsuppl
yinguswiththeunder -
mentionedequi pmentont hef
oll
owingtermsandcondi t
ions.

EQUI
PMENT

Ex-
Isol
o Ex-
1sol
o
1No.Par
kerMobi
l
eCr
ushi
ngPl
antModel

5245/
477606 N476,
000.
00

1No.FodenQuar
rydumpTr
uckModel
FC27

N84,
000.
00

Fastmov
ingr
ecommendedspar
epar
tst
oval
ue

N38,
900.
00

BD440440KVAGener
ati
ngSet N66,
000.
00

PRI
CES

Theagreedpri
cesar
easdetai
ledaboveandar
eunder
stoodt
obeont
hebasi
sofdel
i
ver
yEx
Afr
otec'
syardatI
sol
oIndust
ri
alEst
ate.

DELI
VERY
Thei
temsofpl
antdetai
ledabovearet
obedel
i
ver
edt
osi
teatanaddi
ti
onal
agr
eedpr
iceof
N28,
000.
00(Twent
y-ei
ghtthousandNai
ra)
.

COMMI
SSI
ONI
NG

Afr
otectoatt
endt ocommissi
oni
ngandtoprovi
deski
ll
edengi
neert
osuper
viseinst
all
ati
onat
anaddit
ionalcostofN10,
000.
00(Tent
housandNai
ra)bei
ngfi
veweeksatt
her at
eof
N2,
000.00perweek.

770

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Kut
igi
,J.
S.C.)

B
C

D
E

F
G

H
TERMSOFPAYMENT

Weconfi
rmt
hatt
het
otal
cont
ractpr
iceofN702,
900.
00i
stobepai
dtoAf
rot
econt
hef
oll
owi
ng
t
erms.

40%cashdepositofN281,
160.00(Twohundr
edandei
ght
y-onet
housand,
onehundr
edand
si
xtyNai
ra)pay
ableinadvanceofdeli
ver
y.

Bal
anceof60%pay ablebysi
xequali
nstal
mentsofN70,290.00(Sevent
ythousand,t
wohundr
ed
andni
netyNai
ra)eachsecuredbypost-
datedchequespayableonthe27th,Apr
il
.27thMay
,
27t
hJune,27t
hJuly ,
27thAugustand27thSeptemberrespecti
vel
y.

I
NTEREST

Thei
nter
estchar
geont
hei
nst
alment
alpay
ment
sist
obef
orAf
rot
ec'
saccount
.

Weuncondi
ti
onal
lyandir
revocabl
yagreet
hatAf
rotecshal
lhav
ealienonal
lthemachi
ner
yunt
il
-
sucht
imeasAf r
otecr
eceiv
epay mentoft
heful
lcontr
actamountofN702,
900.
00.

Wealsoconfi
rmthatshouldwef ai
ltopay,
anyoftheinst
almentsdet
ail
edabov ewithi
none
monthoftheduedate,
Afrotecshall
takeimmediatepossessi
onofthosepropert
iesinspeci
e
t
hatremainunpai
dforwithi
nthesubjectofthi
str
ansacti
onwithouthi
ndranceandwi t
hout
r
ecourse.
Your
sfai
thf
ull
y,

For
:MI
A&SONSLI
MITED.

(
SIGNED)

(
SIGNED)

ALHAJI
M.I
.ATTA R.H.MAGGS

MANAGI
NGDI
RECTOR. FI
NANCI
ALCONTROLLER"

Ascoul dbeseent hereforefrom thepleadingsandt heevidenceledatthetrial

,theonl yser
ious
i
ssuebef orethelearnedtrialjudgeandt hereforet
heCour tofAppeal wasast owhet herornot
thedefendanthadt herightt oseizetheequi pmentinquestion.Andindeterminingthatissue,i
t
appearstomet hatthelowercour t
swer ecalledupontoresolveav er
ynar r
owi ssueast o
whetherthetransactionbet weent heparti
esamount edtoanabsol ute/outr
ightsaleora
condit
ionalsaleascont endedbyt heplai
nti
f fandthedefendantrespecti
vely.1willproceedto
consi
dert heissues.

I
ssues(
i)
,(i
i
),(
ii
i)and(
iv)

Theseissuescal
lconveni
entl
ybetreatedtogetherastheyall
rel
atet
ot hepr
operinterpret
ati
on
ofExhi
bit1above,andwhatremediesorr i
ghtsareavail
abl
etotheparti
esasaresultofsuchan
i
nterpr
etati
on.I
twasarguedthatsi
ncei ti
scommongr oundbetweenthepart
ies(thattheSale
Agreementdated28thMarch,1978(Exhibi
t1)wast hebasisuponwhichthesal
ewas
conduct
ed,t
heCourtofAppealoughtt
ohavehel
dthepart
iesboundbyit
sprov
isi
ons;
andthat
i
tshouldhav
eint
erpret
edtheagreementt
oident
if
ythei
ntenti
onofthepar
ti
esastowhet
her

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

771

B
C

D
E

G
H

ornottheproper tyinthegoodspassedt ot heplaintiffontheinstall

ati
onoft heplantin
Kontagorabythedef endant.Thatt
heCour tofAppeal wasinser i
ouser r
orwheni theldthat
undersecti
on18( 1)oftheSaleofGoodsAct1893whi chi
sar eceivedEnglishstatuteofgeneral
appli
cati
oninf orcei nEngl
andt he1stJanuary1900( seesecti
on28oft heHighCour tLawCap.
49LawsofNor ther nNiger
ia1963,Vol.2,hereinaftersimplyreferredtoast heAct)mer e
i
nstall
ati
onoft hepl antinKontagorapassedt het i
tleintheplanttot heplai
ntif
fwithoutregard
totheexpressintent i
onofthepar t
iesinExhibit1.Thatsect i
on18oft heActdeal swi t
h
uncondit
ionalsaleofgoodsunl i
keinthepresentcasewher ethesal eiscondit
ional.Refer
ence
wasmadet osect ion19oft heActandt othef ol
lowi ngauthori
ties:- Buraimov.
Adeniyi(
1990)2NWLR( Pt.
133)406
 Oduy
ev.Ni
ger
ianAi
rway
s(1987)2NWLR(
Pt.
55)126

Ni
gerBenueTr
anspor
tCo.Lt
d.v
.Nar
umal
&SonsLt
d.(
1986)4NWLR
(
Pt.
33)117

BookshopHouseLt
d.v
.St
anl
eyConsul
tant
sLt
d.(
1986)3NWLR(
Pt.
26)
87.

Ogbuny
iyav
.Okudo(
1979)6-
9SC.32

Wewer ealsoref
erredtospeci
fi
edconditi
onsinExhi
bit1headed"TermsofPayment
"and
"
Inter
est"r
especti
vely,
whichthepl
aint
iffhadf
ail
edtof ul
fi
landwhichdi
dnotpassowner
shi
pto
i
tthusleavi
ngthedefendantwit
htherighttor
epossesstheplant
s.

Theplainti
ffont heot herhadcontendedthathavingregardt othepleadingsandevidence,i
t
establ
ishedal egalrighttotheequipmentsespecial
lywhent hedefendanthadpar t
edwi t
h
possessionbef orereceivingful
lpaymentforthem.Thatt hereisnopr ovisi
onint
heActwhi ch
makesasel l
erwhohaspar tedwit
hpossessiontoretaintitl
eunlessthereisspecif
icprovi
sion
orclauseinthesal eagr eementtothatef
fect.Wewer er efer
redtosect i
on17oft heActandt o
thecasesof :

Al
umi
nium I
ndust
ri
esVassenBVv
.Romal
paAl
umi
nium Lt
d.(
1976)2Al
lE.R.552.

HendyLennox(
Indust
ri
alEngi
nes)Lt
d.v
.Gr
ahammePut
ti
ckLt
d.(
1984)2ALLE.
R.152.

Yakassai
v.I
ncarMot
ors(
Nig.
)Lt
d.(
1975)1Al
lN.
L.R.287.

I
twasal socont
endedthatbypart
ingwithpossessi
on(Theri
ghtofli
enandimmediate
possessionwer
elostandthatt
it
lepassedtotheplai
nti
ffwhenthecont
racther
einwasmade.
AsIhav eindi
catedabovethever
ynarrowanddeci
siv
eissuet
obedecidedinthi
sappeal
is
whetherthesaleortr
ansacti
onbetweenthepar
ti
esamountedtoanoutr
ightsal
eora
condit
ionalsal
e.

Ihavereproducedabov etheSal eAgr eement( Exhibit1)saystrai

ghtawayt hatIam innodoubt
whatsoevert hatt
hef actsofthi scaseshowcl earl
yt hattheequipmentormachi ner
ywer esold
tothedefendantcondi ti
onally.Thecondi ti
onsbei ngt hat"t
hedef endantshal
lhav eali
enonal l
themachiner yuntil
at i
met hatt hedef endantreceivedpay mentoft heful
lcontractamountof
N702,900.00"andt hat"thedef endantshal l
takeimmedi atepossessionofthemachi ner
ywi thi
n
onemont hshoul dthepl ai
nti
fff ailt
opayanyoft hei nstal
mentalpay mentdetai
ledinExhibit1"
Inotherwor dsIam oft heviewt hatthepropertyi
nt heequi pmentormachi neryhadnev er
passedtot heplainti
ffwhent hedef endanteff
ectedt heseizure

772

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Kut
igi
,J.
S.C.)

A
B

D
E

F
G

whi
chisthesubj
ectmatterofthi
sacti
on.Thepart
iesar
eclear
ly,
boundbythepr
ovi
sionsi
nthe
Sal
eAgreement(
Exhibi
t1)withoutanysubt
ract
ionoraddi
ti
on.TheCour
thasnopowerto
rewrit
etheagr
eement .Ihavecareful
lyper
usedtheagreementher
einandhavefoundnothing
i
llegali
nanyofit
spr ovi
sions.Exhi
bit1isi
nfactfor
ti
fi
edbytheprovi
sionsofsect
ions38,39
and40oft heAct.Theyreadinpart:

"
RIGHTSOFUNPAI
DSELLERAGAI
NSTTHEGOODS

Unpai
dSel
l
erdef
ined

Sect
ion38(
1)Thesel
l
erofgoodsi
sdeemedt
obean"
unpai
dsel
l
er"wi
thi
nthemeani
ngoft
his
Act-

(
a)

Whent
hewhol
eoft
hepr
icehasnotbeenpai
dort
ender
ed;

(
b)

Whenabi l
lofexchangeorot
hernegoti
ablei
nstr
umenthasbeenrecei
vedascondit
ional
payment,
andt hecondi
ti
ononwhichitwasrecei
vedhasnotbeenfulf
il
ledbyr
easonofthe
di
shonouroftheinst
rumentorot
herwise.

(
2) Omi
tt
ed.

UNPAI
DSELLER'
SRI
GHTS

Secti
on39(1) Subj
ecttotheprovi
sionsoft
hisActandofanyst
atut
einthatbehalf
,
notwi
thst
andingthatthepropert
yinthegoodsmayhav epassedt
othebuyer
,theunpaidsel
l
er
ofgoods,assuch,hasbyimplicati
onofl
aw.

(
a)
Al
i
enont
hegoodsorr
ightt
oret
aint
hem f
ort
hepr
icewhi
l
ehei
sinpossessi
onoft
hem;

(
b)

Omi
tt
ed

(
c)

Omi
tt
ed

(
2)

Wherethepr
opert
yingoodshasnotpassedtothebuy
er,theunpai
dsell
erhasinaddit
iont
ohi
s
ot
herremedi
es,ari
ghtofwi
thhol
dingdel
iver
ytoandco-extensi
vewi
thhi
sright
soflien

UNPAI
DSELLER'
SLI
EN

Sel
l
er'
sli
en

Secti
on41(1) Subj ectt
ot hepr
ovisi
onsofthisAct
,theunpai
dsell
erofgoodswhoi sin
possessi
onofthem i
sentit
ledtor
etainpossessi
onofthem unt
ilpay
mentortenderofthepr
ice
i
nthef ol
l
owingcases,namely:

(
a)

wher
ethegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;

(
b)

wher
ethegoodshav
ebeensol
doncr
edi
t,butt
het
erm ofcr
edi
thasexpi
red;

(
c)
wher
ethebuy
erbecomesi
nsol
vent
.

(
2)

Thesell
ermayexer
cisehi
sri
ghtofli
ennotwi
thst
andi
ngt
hathei
sinpossessi
onoft
hegoods
asagentorbai
l
eeorcustodi
erf
orthebuyer
."

Oneofthef
actsnotindi
sput
einthi
scaseisthatt
hesi
xpost-dat
edchequesi
ssuedbyt
he
pl
ainti
fft
othedefendanti
naccor
dancewit
hExhibi
t1eachbounced

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

773

A
B

D
E

F
G

H
oneaf t
ert heot her .Twent y-
oneot herpost -
datedchequesf orsmal leramount sasr eplacement s
alsower er eturnedunpai d.Andal leff
or tst ocol l
ectt hebal anceoft hesal epr i
ceasagr eedin
(Exhi bi
t1)pr ov edabor ti
v e.Ther eisnodoubtatal lthatt hedef endanti sanunpai dsel lerunder
theAct .Itwast her eforeact i
ngwi thi
nitsr ightswhent houghact ingasanagentoft hepl ainti
ff
,
i
tsei zedt hemachi nerywhi chhadl awf ullycomei ntoi tspossessi onatt her elevantt ime.The
shor tofi tal list hatt hecont ractofsal ebet weent hepar ti
esbei ngcondi tional ,thedef endant
wasent i
tledt oexer ci
sei t sri
ghtofl i
enbot hundert hecont ractagr eement( Exhi bit1)andunder
theAct ,thepl aint i
ffhav ingwoef ullyfailedt osatisfyt hecondi tionsofsal eofpay ingt he60%
balanceoft hesal epr i
ce.ThecaseofYakassai v.IncarMot ors( Ni g.)Ltd.whi chwasr el i
edupon
byt heCour tofAppeal andwhi chwasci tedbyl ear nedcounsel fort hepl ai ntiffwillnotappl y
here.I nt hatcaset heSupr emeCour thel dt hatthesal et hereinwasanout rightorcompl eteor
absol utesal e.I nt heinst ancecaset hesal easIhav ef oundi scondi ti
onal .Soal soi nKof iv.
Mensah( 1933)I WACA76, t
heWestAf ricanCour tofAppeal alsohel dt hatt hesal et her ein,
beingi nout ri
ghtsal e,thepur chaserwasr iotboundbyt heagr eementwhi chal l
owedt hesel ler
tosei zet hel orryorpr oper tyonf ail
ureofi nstalment s.ThatIbel i
ev ewasasi tshoul dhav ebeen.
Theagr eementt osei zet hepr oper ty
,whent hesal ewasabsol ut eorout r
ight ,i
scont raryt othe
prov isi
onsof 'theActdi scussedabov e.Thepr oper tyint hel orryv est edi mmedi atel yint he
purchaserandt hesel l
ercoul dnol ongert akepossessi onofi tonf ail
urebyt hepur chasert opay
thei nstalment .Theset woaut horiti
esdonott herefor eappl yi nt hisappeal wher et hesal easI
haveal readyconcl udedi sacondi ti
onal Sal e.TheCour ti nthet wocasesabov er i
ght lyhel dthat
i
nanout ri
ghtsal e,thesel l
er'
sr emedyl iesi nanact iont or ecov ert hebal anceofpur chasepr i
ce
owedbyt hepur chaseronl y.It hereforer esol veissues1, 2,3and4i nf av ouroft hedef endantas
foll
ows:

(
1)

TheCourtofAppealwaswronginit
sview(t
hatowner
shi
pint
heequi
pmentpassedt
othe
pl
aint
if
fonproperconst
ruct
ionofExhi
bit

(
2)

TheCourtofAppeal
waswr ongi
nit
svi
ewt hatacceptanceofnegoti
ablei
nstr
ument
sor
chequesaspaymentfort
heequi
pmenthadconvertedthecondit
ionalsal
eint
oanabsol
utesal
e.

(
3)

TheCour
tofAppeal
waswr
ongi
nit
svi
ewt
hatt
heonl
yremedyopent
othedef
endantwasan
act
ionf
ort
henecessar
yoft
hebal
anceoft
hesum unpai
d.

(
4)

TheCour
tofAppeal
waswr ongi
nholdingthatt
heplai
nti
ffhadest
abl
i
shedal
egal
righti
nthe
equi
pmentast
oenti
tlei
ttoequi
tabl
ereli
efssought
.

I
ssueVandVI

Theser el
atetothef i
ndingsbyt heCourtofAppeal t
hatdefendanthadwai v
edalltherestri
cti
ve
condit
ionsinExhibit1andwhet herornottherewasasecondcont ractbetweenthepar ti
es.The
defendantsaidtheplainti
ffneit
herpleadedwai v
ernorfact
samount ingtosuchwai ver.The
plai
nti
ffcontendedot herwise.I
trefer
redtoparagraphs9and23oft hestat
ementofcl aim and
toExhibit11alet
terdated3r dJuly1981wr it
tenbythedefendanttotheplaint
if
f.

Ihav
ecaref
ull
yexaminedtheenti
repleadingsi
nthiscase.Thereisnowhereinthepl
eadi
ngs
wherewai
veri
sexpressl
ypleaded.Butdidtheactoftherespondentsi
ninstal
li
ngthe
equi
pmentaft
erdi
shonourofplai
ntif
f'
scheques

774

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Kut
igi
,J.
S.C.)

A
B

C
D

F
G

H
(bot
hor i
ginalandrepl
acements)andademandf orafreshlet
terofli
eni
nit
slett
erof3/7/
81
consti
tut
ewai ver?Myanswerisinthenegat
ive.Ial
sosaythattherewasnosecondornew
contr
actbet weenthepart
iesher
einandnonewaspr oduced.

Now,l
etusseewhatt
heActhast
osayaboutl
ossort
ermi
nat
ionofl
i
en-"
TERMI
NATI
ONOF
LI
EN

Sect
ion43(
1)-Theunpai
dsel
l
erofgoodsl
oseshi
sri
ghtofr
etent
iont
her
eon:

(
a)

omi
tt
ed

(
b)

omi
tt
ed

(
c)

Bywai
vert
her
eof

(
2)

omi
tt
ed.
"
TheActt
husr
ecogni
sedt
hatt
heunpai
dsel
l
er'
sli
enmaybewai
ved.

Butitmustbest ressedt hatbypr oceedi ngt oinst allthemachi nesi nKont agor aaf terthei niti
al
dishonouroft hesi xpost -dat edcheques, thedef endantwasmer elyf ul
f i
ll
ingt het er msof
agreement( Exhibi t1)whi chi ncl udedi nst all
ationatKont agor a.Fai luret oinst allwoul dhav e
amount edt oabr eachoft hecont ract .Secondl yt hepr oposal toi ssuet ennewpost -
dated
chequesi nreplacementoft heor i
ginal sixwhi chwer eal sodi shonour ed, wasconv eyedt ot he
defendantv i
depl ai ntiff
sl et terMI A/A/ 27dat ed25t hMay1981( seedef endant 'sletterExhi bit11
dated3r dJul y1981)wher ei nt hedef endantmadei t sownsuggest ioni ncludingt her equestf ora
freshletterofl i
en.I ti snot ewor thythatt hepr oposal sint hel etterunderr eferencecameonl y
afterthedef endanthadr epossessedt heequi pment /machi ner ywhi chev enhadt akenpl ace
before28t hMar ch, 1980( seepar agr aph21oft heamendedst at ementofcl aim) .Thedef endant
hasnotbeenshownt ohav ewai vedi tsl ienbydeal ingwi tht hemachi nesi nanymanner
i
nconsi stentwi tht hel ienorbymaki nganynewar r
angementwi t ht hepl ainti
f fwhi chi s
i
nconsi stentwi tht hecont inuanceofi tsl ien.Al ienmaybel osti ft hesel l
err ef usest odel i
v ert he
goodsonsomegr oundot hert hant hebuy er'
sf ailuret opayort endert hepr ice, oronsome
groundot herthanhi srightofl ien.Thati snott hecaseher e( seeHungmannv .Brieseman( 1892)
67L. T.642; Weeksv .Goode( 1859)6C. C.( N.S. )367.Exhi bit1bei ngt heagr eementpl eaded
andr eli
eduponbyt hepar ties, allsubsequentact soft hepar ti
esi nf ulf
ilmentoft heagr eement
mustbet r
eatedassuchbutnotasgi vingr i
set onewcont ract seachandev er ytimeapr oposal
i
smadeonhowt oef fectaper formancebyadef aul t
ingpar ty .Ther ewasabsol utelynoneedf or
thedef endantt ohav easkedt hepl aint ifff oraf reshl ienwhenExhi bit1hadpr ovi
dedf orsame.
Ther equestwassuper flous.Thef actwast hatt het ennewchequesst illbounced, oneaf tert he
otherandsot hedef endantr emai nedanunpai dsel ler.Ither ef orer esol veissues( V)and( VI)in
favouroft hedef endantandhol dt hatt heCour tofAppeal erredwheni thel dt hatt hedef endant
hadwai veditsrightofl i
enascont ainedi nExhi bi t1whi chi st heonl yagr eementorcont r
act
pleadedandr elieduponbyt hepar ti
es.Ial sohol dthatt hepl ai ntiffdi dnotest ablishanyl egal
ri
ghti ntheequi pmentast oent i
tlethem t oanyoft her eliefscl aimed.

I
SSUE(
VII
)

Thi
sissuei
sdi
rect
edagai
nstt
hef
oll
owi
ngor
dermadebyt
heCour
tofAppeal
-

"Thatthesaidequi
pmentbedel
i
v er
edtotheplai
nti
ffsubjectt
otheplai
nti
ffpayi
ngtheent
ir
e
sum outst
andingasbal
anceofthetot
alcostoft
heequi pments,
taki
ngintoaccount
N381,160.00the
[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Kut
igi
,J.
S.C.)

775

B
C

D
E

G
H

pl
aint
if
fhadsof
arpai
dtot
he1str
espondent(
def
endant
)"

Thereisnodi sputeaboutt hef actthatthi

si scertai
nlynotoneoft her el
ief
ssoughtbyt he
plai
nti
ffagainstthedef endanti nthetri
alcour t
.Thedef endantalsomadenocount er
-cl
aiminits
stat
ementofdef encebef oretheHi ghCour tagainsttheplaint
if
f.Theor dermadebyt heCourtof
Appeal i
sthereforeclearl
ygr atuit
ous.Itisnott hefuncti
onofaCour tofLawt omakea
gratui
tousawar d.Suchanawar dwi l
lbeincompet ent(seeforexampl eEkpeyongv.Ny ong
(1975)2SC. 71,Obiomav .Olomu( 1978)3S. C.1).Theissuethereforesucceeds.

Havi
ngcometotheconcl
usi
onasIhavedoneabovethatt
heplai
ntif
fdidnotestabl
ishanylegal
r
ighti
nthepr
opert
yormachi
ner
ysubject
-matt
erofthecont
ract
,itaut
omatical
lyfai
l
edt oquali
fy
foranyoftherel
ief
ssoughtby,itagainstthedefendant
.Thepropertyort
it
lei
nthegoods
condit
ionall
ysol
dtothepl
ainti
ffremai nedperpetual
l
yinthedefendantasanunpai
dsell
erand
ascontainedint
heSaleAgreement( Exhibit1)
.

Iti
snotewort
hytoobserveherenowt hattheAct,hit
hertoareceiv
edEngli
shstat
uteofgeneral
appli
cati
oni
nKadunaSt ate,
hassi ncebeenNi geri
anisedvidetheSaleofGoodsEdi
ctNo.15of
1990.Thisi
sasitshouldbe.Al
l suchlawsshoul dbeNi geri
ani
sedassoonaspossibletoenabl
e
usknowwhatl awsactual
lygovernuswi thouthavingtotravel
allthewaytoEngl
andforthe
purpose!

Onthewholet
hisappealther
efor
esucceedsandi tisall
owed.Thejudgmentoft heCourtof
Appeali
ncl
udi
ngitsor
ders,areherebysetasi
de.Thejudgmentoft helear
nedtri
aljudge
del
iver
edon21stJul
y1989di smissi
ngplaint
if
fsclai
msi srest
ored.Thedefendantisawarded
cost
softhi
sappealwhichisfi
xedatN10,000.00againsttheplai
nti
ff
.

WALI,
J.S.
C.:
Ihavereadbefor
enowtheleadj
udgmentofmylear
nedbrother
,Kut
igi
,JSCandI
agr
eewithhi
sreasoni
ngthatt
heappeal
hasmeritandoughtt
osucceed.

Thev exedquesti
onthatari
sesfordet
ermi
nat
ioni
nthi
sappealanduponwhichther
esolut
ionof
otherissuesr
aiseddepends,i
sIssue1int
heappel
l
ant
s'br
iefofargument
.Itr
eadsasfoll
ows:

"
1.

Whet hert
heCourtofAppealwasrighti
nitsviewthatownershi
pintheequipmentpassedtothe
respondentonproperconst
ruct
ionofExhibi
t1,merelybecausetheAppel
lanthaddel
iver
edthe
equipmentatthesit
eoftherespondentatKontagora.
"

Lear
nedcounsel
fort
her
espondentcr
it
ici
sedt
hemannert
hei
ssuesi
ntheappel
l
ant
s'br
ief
weref r
amed.Hei npar t
icularref
err
edt othegr
ounds1and3andcont endedt hattheycouldnot
beattachedtoanyi ssuei ntheappell
ant'
sbri
ef.Itwasalsohiscomplaintthatground2was
spli
tinto2byframing2i ssuesoutofittowiti
ssues( i
)&(iv)andsubmittedthatagr oundof
appealoughttorelate,t
oonl yoneissuefordeterminati
on.Learnedcounselfurthercomplained
thatI
ssues(ii
i
)and( vi
)wer enotbasedonorr elatedt
oanygr oundofappeal .

Ihaveexaminedtheissuesframedbyt heappell
antasr elatedtothegroundsofappealand
havearr
ivedattheconclusi
ont hattheonl
yissuethatcoul dnotbehingedtoanygr oundof
appeali
sissue(vi)
,andforthatreasoniti
sherebystruckout .Onthequestionr
elati
ngto
for
mulati
ngtwoi ssuesfrom asingl
egroundv i
zissues(i)and( i
v)ari
singfr
om ground2,iti
snot
agai
nsttheprocedurerel
ati
ngt o

776

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Wal
i
,J.
S.C.)

B
C

D
E

F
G

bri
efsofar gumentthatoneormor eissuesareformul atedoutofagr oundofappeal,
but1
agreethatitisi
neleganttodosoandi tmayattimesbei ncomprehensibl
eandconfusi
ng.The
purposeoff i
li
ngabr i
efistost atewit
haccuracy,brevityandprecisi
onwhat ev
erisessenti
alto
cl
earandadequat eunderstandingofthequesti
onswhi char cr
equiredtobeconsider
edbyt he
Court.Ground1i sinmyv iewcov eredbyIssue(i
)gr ound3byi ssue( i
i)andgr
ound4byi ssue
(i
ii
)oftheappel l
ant'
sbrief.
From thepleadi
ngsandevidencel
eadinthi
scase,bot
hor alanddocumentarythepart
ies
enteredint
oagreementforthesal
eofspeci
ficgoodsandt hecondi
ti
onsattachedtosuch
contract
.Thesearecontai
nedinExhi
bit1dated28thMarch,1978.I
tisashor tdocumentand
forthepurposeofcl
ari
tyandconveni
enceExhibi
t1isreproducedhereunder

"
Afr
otecTechni
cal
Ser
vicesNi
g.Lt
d.

P.
M.B.1061,

Oshodi
,

LagosSt
ate.

DearSi
rs,

SUPPLYOFI
TEMSOFPLANTANDEQUI
PMENT

Weher ebyunconditi
onal
l
yandi r
revocabl
yunder t
aketopayAf rot
ecTechni
calSer
vicesNiger
ia
Limi
ted[herei
nafterr
efer
redtoasAf r
otec]thetotal
sum ofN702,900.00[
sevenhundredand
twothousand,ninehundredNair
a)inconsiderati
onoftheirsuppl
yi
nguswiththeunder-
mentionedequipmenton.thefol
lowingtermsandcondi t
ions-Equipment

NEx-I
sol
o
1No.Par
kerMobi
l
eCr
ushi
ngPl
antModel
5245/
4/7606 476,
000

1No.FodenQuar
ry.DumpTr
uckModel
FC27 84,
000.
00

Fastmov
ingr
ecommendedspar
epar
tst
oval
ue- 38,
900.
00

BD440KVAGener
ati
ngSet 66,
000.
00

PRI
CES

Theagreedpri
cesar
easdetai
ledaboveandareunder
stoodt
obeont
hebasi
sofdel
i
ver
yEx.
Afr
otec'
syardatI
sol
oIndust
ri
alEst
ate.DELI
VERY

Thei
temsofpl
antdetai
ledabov ear
etobedel
i
ver
edt
osi
teatanaddi
ti
onal
agr
eedpr
iceof
N28,
000.
00(t
wenty-
eightthousand,
Nair
a).

COMMI
SSI
ONI
NG

Afr
otectoat
tendtocommissi
oni
ngandtopr
ovi
deski
ll
edengi
neert
osuper
viseanaddi
ti
onal
costofN10,
000.
00[Tent
housandNai
ra)
,bei
ngfi
veweeksatt
herat
eofN2,
000.00perweek.

Ter
msofpay
ment

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d
(
Wal
i
,J.
S.C.)

777

B
C

E
F

G
H

Weconf
ir
mt hatt
het
otal
cont
ractpr
iceofN9702,
900.
00i
stobepai
dtoAf
rot
econt
he
f
oll
owi
ngter
ms.

40%cashdepositofN281,
160.00(Twohundr
edandei
ght
y-onet
housand,
onehundr
edand
si
xtyNai
ra)pay
ableinadvanceofdeli
ver
y.

Balanceor60%payableby.si
xequali
nst
almentsorN70,
290.00(Seventyt
housand,t
wo
hundredandninet
y.Nair
a)eachsecur
edbypost-dat
edchequespayableonthe27thApr
il
,27t
h
May ,27t
hJune,27t
hJuly,27t
hAugustand27thSeptemberrespect
ivel
y.
I
NTEREST

'
Thei
nter
estchar
geont
hei
nst
ament
alpay
ment
sist
obef
orAf
rot
ec'
saccount
.

Weuncondi
ti
onall
yandir
revocablyagr
eethatAfr
otecshall
haveali
enonallt
hemachi
ner
y,unt
il
sucht
imeasAfrot
ecrecei
vepay mentoft
hef ul
lcont
ractamountofN702,
900.
00

Wealsoconfi
rmt hatshouldwef ai
ltopayanyoftheinst
almentsdetai
l
edabovewithi
none
monthoftheduedat e,
Afrotecshall
takeimmediatepossessi
onofthosepr
opert
iesinspeci
e
t
hatremainsunpaidforwithi
nthesubjectoft
histr
ansacti
onwithouthi
ndr
anceandwi t
hout
r
ecourse.

Your
sfai
thf
ull
y.

For
:MI
A&SONSLI
MITED

ALHAJIM.I
.ATTA R.H.MAGGS

Managi
ngDi
rect
or Fi
nanci
alCont
rol
l
er.
"

Fol
l
owingthi
sagreementtheappell
antdeli
veredtheplantandaccompany
ingequi
pmentatt
he
agr
eedsit
einKontagoraTown.NigerStat
eandi nst
all
edthem.Beforet
hedeli
ver
yand
i
nstal
l
ati
onoftheplantandequi
pment ,
therespondentpaid40%ofthecontr
actpri
cet
owit
N281,166.
00andthebalanceofN428,860.00tobepai
dbysixequal
inst
alment
sofN70,
290.00
eachsecuredbypost
-datedchequepay abl
eon27thApri
l
,27t
hMay ,
27thJune,27t
hJul
y,27t
h
Augustand27thSept
ember ,1978respecti
vel
y.

Thef
oll
owi
ngst
ipul
ati
onswer
especi
fi
cal
l
ypr
ovi
dedi
nExhi
bitI

"
1.

Thei
nter
estchar
geont
hei
nst
alment
alpay
ment
sist
obef
orAf
rot
ec'
saccount
.

2.

Weuncondi
ti
onall
yandir
revocablyagr
eethatAfr
otecshall
haveali
enonal
lthemachi
ner
yunt
il
sucht
imeasAfrot
ecrecei
vepay mentoft
hef ul
lcont
ractamounto/
N702,
900.00.

3.

Weal
soconfi
rmthatshoul
dwef ai
ltopayanyoftheinst
almentsdetai
l
edabovewithi
none
mont
hoftheduedate.Af
rot
ecshallt
akeimmediatepossessi
onofthoseproper
ti
esinspeci
e
t
hatr
emai
nsunpaidforwit
hint
hesubjectoft
histr
ansacti
onwithouthi
ndr
ance

778

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Wal
i
,J.
S.C.)

A
B

C
D

E
F

H
andwi
thoutr
ecour
se,
(it
ali
cspr
ovi
dedf
oremphasi
s)

Theobj ectofsaleofgoodsisgeneral
lytotr
ansferi
tsownershiptothepurchaserfrom t
he
sell
er.Seesect i
ons16-19oftheSaleofGoodsAct ,
1893.Butwher eacontrar
yintenti
onis
shownt hepr opertyi
nthegoodsonlypassestothebuyeratsuchtimeast heparti
est ot
he
contractintendto.Andfort
hepurposeofascert
ainingt
heintenti
on(oftheparti
es, r
egar
dmust
behadt othetermsofthecontr
acttheconductofthepart
iesandt heci
rcumstancesoft he
case.InR.v .War dLt
d.v.Bi
gnall
(1967)2AllER449at453; (
1967)QB534CA, DiplockL.
J.
stat
ed:

".
..
..i
nmodem t
imesver
yli
tt
lei
sneededt
ogiver
iset
othei
nfer
encet
hatpr
oper
tyi
nspeci
fi
c
goodsist
opassonl
yondeli
ver
yorpayment
."

Hav i
ngregardtothecont
ent
sofExhi
bit1andtheconductoft
heparti
esi
nthiscase,
cani
tbe
concludedthatt
heownershi
pofthespeci
fi
cgoodssoldanddeli
ver
edpassedtothe
respondent?

Ther espondentagreedinExhi bi
t1unconditi
onall
yandi rrevocablythatAf r
otecshal lhaveal ien
onall t
hemachi nerysoldanddel i
veredunderthatcontract,until
sucht i
measAf r
otecr eceives
paymentof 'theful
lcontractamountof N702,
900.00.Itwasagr eedbyt hepar t
iesinExhi bi
t1
thatshouldtherespondentf ailt
opayanyoft heinstalmentsdet ail
edinExhi bi
t1wi thinone
mont hofduedat e,theappellantAfr
otecshallt
akeimmedi atepossessi onoft hosepr opert
iesin
speciethatremainsunpai dwi t
houthindr
anceandwi t
houtr ecourse.Thisshowst hatthe
passingofthepr opert
ytot herespondentiscondit
ionaltot hepay menti nfull
oft hecont r
act
pri
ceasagr eedinExhi bi
t1.

Per
usi
ngt
hrought
hedocument
stender
edandadmi
tt
edi
nthecour
seoft
ri
alt
her
ewasan
attemptbyt hepar ti
estoreschedul et hepaymentoft heoutstandingdebt swhi chwasnev er
concl udedaf terdefaul
tbyt herespondent .Ther espondentmadeapr oposaltot heappellantin
thatr egardwhi chthelatt
err epl
iedbyacount erproposal.Acount er-offerbytheof feree
oper atesasar ej
ectionoftheor i
ginal off
erthust erminati
ngit.Soi tisfuti
lefort herespondent
tocl aimt hat
Exhibit1hadbeenr eplacedoral ter
edbyanot heragreementwhi chhecal l
ed
nov ation.Thecondi ti
onsinExhi bi
t1wer estil
lbindingandenf orceabl eatthetimeofl i
ti
gation.
Ther ewasnowai verbytheappel lantofhisrightofl i
enov ertheequi pmentsol danddel i
vered
tot her espondent'ssit
einKont agor a.Thedelay, bytheappellantinex erci
singt herightsgiven
himi nExhi bit1wasonl ytogi vethepar ti
esmor et i
meandoppor t
uni tytoreachami cable
settlementwhi chtherespondentf ailedtoavailhimsel fbyresort
ingt ounf ul
fi
ll
edpr omi sesand
hollowunder -t
akingbeforeher esortedt oli
ti
gation.

Withconsentandt aci
tappr ovaloftherespondent,t
heappel l
antregainedpossessionoft he
equipmentthatiswhenhewast oremov ethem from KontagoratoKadunaf orservi
cingand
rel
ocati
ont oanothersiteinKaduna.Itwast henhedeci dedtoholdont ot hem inexerci
seofhis
l
ienfortheunpaiddebt .Theappellantwasmor eorl
essatt hatti
mel i
ket herespondent'sagent
.
Seesection41(2)oftheSal eofGoodsAct s.1893andGr icev.Ri
chardson( 1877)3App.Cas.
319.Section41(1)oftheSal eofGoodsAct ,1893pr
ov i
desasf ol
lowing-

"Subj
ectt
ot heprov
isi
onsoft
hisAct.theunpai
dsell
erofgoodswhoi
sinpossessi
onoft
hem is
enti
tl
edtoretai
npossessi
onofthem unti
lpaymentort
enderoft
hepr
icei
nthefoll
owi
ngcases,
namely

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Wal
i
,J.
S.C.)

779

A
B

C
D

F
G

H
[
a]

Whent
hegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;

[
b]

Wher
ethegoodshav
ebeensol
doncr
edi
t,butt
het
erm ofcr
edi
thasexpi
red;

[
c]

Wher
ethebuy
erbecomesi
nsol
vent
."

Par
agr
aphs(
b)and(
c)coul
dappl
y,i
nthepr
esentcase,
because-

"
(i
)

t
heappel
l
antwasanunpai
dsel
l
er;

(
ii
)

t
hest
ipul
atedper
iodofcr
edi
thadex
pir
ed;

[
ii
i
]

t
hebuy
er(
whoi
sther
espondent
)hadbecomei
nsol
vent
;and
(
IV)

t
hesel
l
erwasi
npossessi
onoft
hegoodsorpar
toft
hem.
"

Sect
ion62(
3)oft
heSal
esofGoodsAct
,1893al
sodef
inedi
nsol
vencyasf
oll
owi
ng:

"Apersonisdeemedtobeinsol
ventwit
hinthemeani ngoft
hisActwhohi
sei
therceasedt
opay
hisdebtsi
ntheordi
narycour
seofbusiness,orcannotpayhi
sdebtsast
heybecomedue.
whetherhehascommittedanactofbankruptcyornot.
"

SeetheFel
ici
ana(1915)59CJ456;Rv.Saddl
ersCo.(
1863)10H.L.404,425;Par
kerv.Gossage
(1835)2CM &R617, 620andBi
ddl
eCombev .Bond[1835)4A&E332, 337.Therespondent
wasunabletopayhisdebt
swhentheybecamedueandwast her
eforeI
nsolvent
.

Byv i
rt
ueoftheprovisi
onofsection39oft heActthepowersgr antedtotheunpai
dsellerunder
Part(i
v)t
hereofcanbeexer ci
sedbyhi m" notwi
thstandi
ngthatt heproper
ty,i
nthegoodsmay
havepassedtothebuy er.
"Seealsosect i
on41[ 2]oftheActthatalsoprovi
desthatthesell
er-
"mayexerci
sehisri
ghtofl i
ennotwi t
hstandingthat,heisi
npossessi onofthegoodsasagent
orbail
eeforthebuyer.
'.SeeGri
cev .Richardson[18733App.Cas319.

I
tisi
mpli
citi
nsect
ion28oft heActthatdel
iv
eryofthegoodsi scondi
tional
onpay mentand
wher
epaymentisnotfor
thcomingorifthebuyerbecomesinsolvent
,thesell
erisent
it
ledto
r
etai
nthegoodsevenduri
ngt hecur
rencyofaperiodofcr
edit.SeeBloxam v.Sander
s( 1825)4
B&C941at949.

Subsequenttot
hej udgmentofthetri
alcour
tinwhichtherespondentasplai
nti
ffl
ostt
othe
appell
antasdef
endantr esul
ti
nginthedismi
ssaloftheacti
onf i
l
ed.Therespondentbr
oughtan
appl
icati
onfori
njuncti
ont ost
aytheimplementat
ionofthejudgmentpendingappeal
.

Par
ti
esfi
ledaf
fi
davi
tsandcounter
-af
fi
davi
tsandmadeoralsubmissi
onswhentheappli
cat
ion
washear
d.Inaconsi
deredr
uli
ng,t
helear
nedtri
alj
udger
efusedtheappli
cat
ionandconcl
uded:
"I
nsum theappli
canthasfai
ledtoestabli
shthatt
heres.
itseekstopreser
veissti
l
linexistence
orint
hepossessionoftherespondent.Thi
scourtshal
lnotther
efor
eexercisei
tsdiscr
etionary
powerinvai
n."

Thelearnedt r
ialJudgef oundthatbeforefi
li
ngt helit
igat
ionbyther espondentduewarningby
theappellanttother espondentthati
nexerciseoft heirr
ightofl
ienont heequipmentinthei
r
possessiontheyi ntendtodisposeofsamebysal etosatisf
ythedebtorpar tt
hereofandasa
resul
tofwhi chthesai dequipmentwer ethereaftersoldanddeli
veredt oMessrsAfcon
Engineeri
ngCo.Lt d.Secti
on48(2)&(3)conf ersont heunpaidsell
ertherighttosel
lgoodsinhi
s
possessionin

780

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Wal
i
,J.
S.C.)

B
C

D
E

F
G

exer
ciseofhi
sli
enov
ert
hesamei
nor
dert
osat
isf
yhi
sdebtorpar
tther
eof
.Itpr
ovi
dest
hus:

"
48[2]Whereanunpai
dsell
erwhohasexerci
sedhi
sri
ghtofli
enorr
etent
ionorstoppagei
n
t
ransi
tsel
lsthegood,
thebuyeracqui
resagoodt
it
let
heret
oasagai
nstorigi
nal
buy er
.

(
3)
Wheretheunpaidsell
ergivesnoti
cetothebuyerofhi
sint
enti
ontore-
sel
landthebuyerdoes
notwit
hinareasonablet
imepay ,ort
enderthepri
ce.Theunpai
dsell
ermayre-
sel
lthegoods
andrecoverf
rom theori
ginalbuy
erdamagesf oranyl
ossoccasi
onedbyhisbr
eachofcontract
.

Anunpaidsell
ercanexer
ciset
hestat
utor
yrightofresal
eoftheGoodsi nhispossession
whetherofnotpr
operl
yinthegoodshaspassedtot hebuy
erornotand( t
henewbuy eracqui
res
goodtit
lei
nsuchgoods.SecR.v.Wardv.Bignal
l(1967)Q.B.543;
(1967)(1967)2All 449.
"

Undersect i
on48oft heSal esofGoodsAct ,theunpai dsel lerretainst heri
ghtt osel lthe
i
dent i
fiedpr oper ty,wheret hebuy erhasbecomei nsol vent.Ther ightofsal ecanbeexer ci sedby
thesel l
erundert hissect ionwher ehehasbeeni ncont inuouspossessi onofthegoodsorwher e
hehasr egainedpossessi onbyexer cisinghi sr i
ghtofl i
enorst oppageoft hegoodsi nt ransit.
Thisr i
ghtisav ailabletohi m whet herornott hepr oper t
yi nt hegoodshaspassedt ot heor i
ginal
buyerwhohasbecomei nsolv entbyhi sf ai
luretopayort endert hepur chasepr iceasagr eedi n
thecont ract,withinar easonabl eti
me.Thei ntenti
ont osel lthegoodsmustbenot i
fiedt ot he
i
nsol ventbuy er.Whati sar easonabl etimei nt hiscont ex tisaquest i
onoff act.SeeDamhouwer
&Co.Lt d.v.Chr isti
an( 1917)KB37.I nt hatcasei twasagr eedbyt hepar ti
est hatpay mentwas
tohemadewi t
hi n90day soft hear r
ival ofthegoods.Ov er90day soft hearri
v aloft hegoods
thepur chaserdi dnotpayf ort hegoodsort akedel iveryoft hesame.Thesel lergav ethreeday s
noticet otheexpi ry
,ofwhi chhesol dthegoods.I twashel dt hatthet hreedaysnot icei s
reasonabl ehav ingr egardt oal l
thesur roundi ngcir cumst ancesoft hecase.Ther esaleoft he
goodsr esci
ndedt heor iginal contractandt hepr oper tyint hegoodsr evert
edint heunpai dsel l
er
whichhadpr ev
iousl y,passedt otheor i
gi nalbuy er.Thisactofr esaler esci
ndedt heor igi
nal
cont r
act ,
thusr ev ert
ingt hepr oper t
yint hegoodst ot hesel l
erwhopassedgoodt it
leint hem t o
thenewbuy er.

TheCour
tofAppeal
wast
her
efor
ewr
ongi
nit
sconcl
usi
ont
hat
:

"Ihaveconsi
der
edall
therel
evanti
ssuesaboveanditi
smyj udgmentt
hatthisappealmust
succeedanditi
sal
lowed.Iher
ebysetasi
dethejudgmentofIbi
yey
e,J.del
i
v eredon21(7)
89.

Ialsoagreethatthet hi
rdparty
.AfconEngineeri
ngCompany ,Ltd.di
dnotobtai
nanyt i
tl
eint
he
equipmentindisputewhi chthe1strespondental
legedl
ysoldtoit.The1str
espondenthadno
propri
etoryri
ghtsov ert
heequi pmentwhenitsoldanddeli
veredittothe2ndrespondent
.Af
ter
parti
ngwi t
hthepr opert
yinthegoods, t
heCompanyhadnor ighttopassovertothe2nd
respondent.I
tisalsoquit
eplainthatt
he2ndr espondentboughttheequipmentwiththe
knowledgeoft his,
sui
tandthatinit
sel
fwil
ldisquali
fyi
tfrom obtai
ninganypropert
yinthe
equipment.The2ndr espondentisher
ebyorderedtoreleasetheequipment,
ifithadtaken
possessionoft hesame,

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Iguh,
J.S.
C.)

781

B
C

E
F

G
H

f
ort
hwi
th.
"

Iti
sf ort
heseandot herreasonsablystatedi
nthejudgmentofmyl ear
nedbrotherKuti
gi,
JSC
whichhav eal
ready,expressedmyagr eementwiththatIal
soherebyal
lowthi
sappeal ,
setasi
de
thejudgmentandor dersoftheCour tofAppealandrestor
ethejudgmentoft
het r
ialCour
t.I
awardN10, 000.00costst otheappell
antagai
nsttherespondent.
IGUH,J.S.
C.:Ihavehadtheprivi
legeofreadi
ngi
ndraf
tthej
udgmentjustdel
i
ver
edbymy
l
earnedbrother,Kut
igi
,J.
S.C.andIam infull
agr
eementwit
hhimthatther
eismeri
tint
his
appealandthatthesameshoul dbeallowed.

Iti
snotindisputethatthetransact
ioni
nissueisacont
ractofsal
ebetweentheappel
l
antand
the1strespondentinrespectoftheappel
lant
'
sParkerCrushi
ngPlantwi
thi
tsauxil
i
ary
equipment,t
hatistosay :

1. Par
ker5245/
4Cr
ushi
ngPl
antCombi
nat
ionv
alueat N476,
000.
00

2. FodenQuar
ryDumpTr
uckModel
FC27 N84,
000.
00

3. BD440Gener
ati
ngset
. N66,
000.
00

4. Spar
epar
ts N38,
900.
00

Transpor
tat
ionoft hepl
antbyt heappel
lanttothe1strespondent
'ssi
teatKont
agorat
ogether
withtheagr
eedf eesforthecommi ssi
oningoftheequipmentwereassessedandfi
xedat
N38,000.
00,thusbr i
ngi
ngthetotalcont
ractpri
ceofthesaletoN702,900.
00.Thecont
ract
whichisinwrit
ingwasdul yexecut
edbyt heappell
antandwast ender
edinevi
denceatthe
heari
ngasExhi bi
t1.

Pursuanttothet ermsofExhi
bit1dat ed28t hMar ch,
1978,the1strespondent ,asthepur
chaser,
"uncondi
ti
onal l
yandirr
evocably"undertookt opaytotheappell
ant,astheseller,t
hesaidtot
al
sum ofN702,900. 00asconsi
der at
ionf orthesaleanddel
iveryoftheplanttot he1st
respondent'
ssiteatKontagora.Thepr eciseter
msofpay mentwer eexpresslyst i
pulat
edbythe
parti
esasfollows:
"
1.

40%cashdepositofN281,
160.00(Twohundr
edandei
ght
y-onet
housand,
onehundr
edand
si
xtyNai
ra)pay
ableinadvanceofdeli
ver
y.

2.

Balanceof60%pay abl
ebysi
xequali
nstal
mentsofN70, 290.00(Sevent
ythousand,t
wohundred
andninetyNai
ra)eachsecur
edbypost-
datedchequespay ableonthe27thApril
,27t
hMay,27th
June,27thJul
y,27t
hAugustand27thSeptemberrespecti
vely.
",

Thepart
iesf
urtheragr
eethatt
heappel
l
antwoul
dhavearightofl
i
enonallthemachineryunt
il
suchti
meast hecontr
actamountwasful
l
ypai
d.The1str
espondentf
inal
l
ybounditselftot
he
appel
l
antasfoll
ows:

"
Weal soconfi
rmthatshoul
dwef ai
ltopayanyoftheinstal
mentsdetail
edabovewi t
hinone
monthoftheduedate,Afr
otecshal
ltakeimmediat
epossessionofthosepropert
iesinspeci
e
t
hatremainedunpai
dforwithi
nthesubjectoft
hist
ransacti
onwithouthi
ndranceandwi t
hout
r
ecourse.
"

Onr
ecei
ptoft
hepay
mentofN281,
160.
00andt
hepost
-dat
edcheques,
the

782

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Iguh,
J.S.
C.)

A
B

C
D

E
F

G
H

appell
antproceededtoinstal
landcommi ssiontheequipmentwi thi
tsaccessori
esatt he
Kontagoraquarrysi
teofthe1str espondent.Regret
tably,howeverallt
he1strespondent '
spost
-
datedchequesonpr esentati
onforpay mentbyt heappell
antont hei
rrespecti
veduedat eswere
dishonouredandretur
nedunpai d.Anothersetofpost-datedchequesissuedbyt he1st
respondenttotheappell
antinreplacementoft hebouncedchequeswer ethemselvesagain
dishonouredandretur
nedunpai d.Allef
fort
sbyt heappellantt
ocol l
ecttheunpai
dbal anceof
thecontractpr
iceofthesaidplantandequi pmentfrom the1strespondentprovedabor ti
ve.

Foll
owi ngthe1str espondent'srequestf orthedismant l
i
ng, t
ransport
ati
onandr ei
nstallati
onof
theplantati t
snewsi teatKaduna,theappel l
antproceededtoKont agora,dismantledt heplant
buttranspor t
edt hesamet ot heappellant'swarehouseinKaduna.Thi s,itdidinexerciseofits
ri
ghttor etakeimmedi at
epossessionoft hepropertyinissueaspr ov
idedf orinExhibi
t1.The
appellantagaindemandedt heunpai dbal anceofthepur chasepriceoftheequi pmentf rom the
1strespondent .Afterthefai
lurebyt he1str espondenttomeetar evi
sedpay mentproposal
agreedt obyt hepar t
ies,t
heappel l
antr esolvedtoexerciseit
srightofli
enand/ orretentionov er
theplantandt osellt
hesameandr efundt he1strespondent'sdeposit
.

Accor di
ngly,
theappel
lantaddressedt hel
ett
er ,
Exhibi
t14t ot
he1str espondentaffect
ingi
twit
h
noticeofitsint
enti
ontodisposeof ,bysal
e,thecrushingequipmentinissue.I
twasaf tert
he
receiptofthi
snot i
cet
hatthe1str espondentinsti
tut
edthisacti
onclaimingagainstthe
appellantasfoll
ows:
"
(i
)

Perpetuali
njunct
ionrest
rai
ningthedefendant
,it
sagent
s,ser
vant
sorot
herof
fi
cer
sact
ingoni
ts
behalffr
om disposi
ngofbysal eorotherwi
setheequi
pment.

(
ii
)

Damages.

(
ii
i)

Speci
fi
cper
for
manceofagr
eementofi
nst
all
ati
onofequi
pment
s

i
.e.

(
a)

Par
ker5245/
4cr
ushi
ngpl
antcombi
nat
ion

(
b)

Fol
denModel
DumpTr
uck

(
c)

BD440Gener
ati
ngSet

(
d)

Spar
epar
tsf
orcr
ushi
ngpl
antatKadunaquar
rysi
teoft
he

pl
aint
if
fbydef
endantor
,intheal
ter
nat
ive,
ref
undofal
lmoni
espai
dbyt
hepl
aint
if
ftot
he
def
endantont
hesaidequipment
."
Thelearnedtri
alJudge,I
biy
eye,J.,
ashethenwas, attheconcl
usionofheari
ngheldthatthe
appell
ant'
sactionwasintheexerciseofi
tsr
ightofli
enand/orit
sr i
ghtt
owi t
hholdthesubject
-
mat t
erofthesaleunti
lful
lpaymentofthecontr
actpri
ce.Heaccor di
ngl
ydismissedallt
he1st
respondent'
sclai
msi nt
heirent
iret
y .

Aggri
evedbythi
sdeci
sionoftheHighCourt
,the1str
espondentappeal
edtotheCourtof
Appeal
,KadunaDiv
isi
on,whi
chcour ti
naunanimousdeci
sionall
owedtheappeal
,setasi
det
he
j
udgmentandordersofthet
ri
alcourtandpr
oceededtoorderasfol
lows:

(
i)

Per
pet
ualI
njuncti
onrest
rai
ningt
heappel
lant
,it
sser
vantand/
oragent
sfr
om di
sposi
ngofby
sal
eorot
herwisetheequi
pmentini
ssue.

(
ii
)

Speci
fi
cperfor
manceoft hecont
ractofsal
eanddel
i
ver
yoft
heequi
pmentbyt
heappel
l
antt
o
the1str
espondentsubj
ecttopayment

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Iguh,
J.S.
C.)

783

A
B

C
D

E
F

H
oft
heout
standi
ngbal
anceoft
hecont
ractpr
icebyt
hesai
d1str
espondent
.

(
ii
i)

Anor
derr
emi
tt
ingt
hei
ssueofgener
aldamagescl
aimedt
othet
ri
alHi
ghCour
tforassessment
.

Theappel
lantbei
ngdi
ssat
isf
iedwi
tht
hisj
udgmentoft
heCour
tofAppeal
hasnowappeal
edt
o
thi
scourt
.

Therecanbenodoubtthathavingregardtot hepl
eadingsandtheevi
dencebef orethecourt
toget
herwit
hthevari
ouslegalquesti
onst hatwerecanvassedbylear
nedcounsel forthepar
ties,
anumberofissueswouldappeartoar i
sef ordet
erminati
oninthi
sappeal.Iproposetoexamine
bywayofemphasisonly,someoft heseissuesasframedbyt hepart
ies.Thesecompr iseof
:

(
i)

WhethertheCourtofAppealwasnotinerrorbyholdi
ngthatpr
opertyi
nt heplantwi
thit
s
accessor
ieshadpassedtothe1strespondentbyvirt
ueofthecontr
act,Exhi
bit1,merel
y
becausetheappell
anthaddeli
ver
edtheequi pmentatthesi
teofthe1strespondentat
Kontagor
a.

(
ii
)
Whet hertheCourtofAppealwasnotinerrorwhenithel
dthatt
heonl
yremedyopent ot
he
appellantwasanactionfort
herecoveryoftheunpaidbal
anceoft
hecontr
actsum andnoti
nit
s
exerciseoftheri
ghtofli
enand/ori
mmedi atepossessi
onofthepl
antasprov
idedf
orinthe
agreementbet weenthepart
ies.

(
ii
i)

Whethert
heCour
tofAppealwasri
ghti
nit
sv i
ewthataccept
anceofnegoti
abl
einstr
ument
sas
pay
mentfort
heplanthadconv
ert
edthecondi
ti
onalsal
ethereofi
ntoanabsol
utesal
e.

(
iv)

WhethertheCour
tofAppealwasnoti
nerr
ort
ohavefiel
dthatt
he1strespondenthad
est
abli
shedalegalr
ighti
ntheequi
pment
sastoent
it
leitt
otheequi
table,
rel
ief
ssought.

(
v)

Whet
hert
he1str
espondentbyi
tspl
eadi
ngsandev
idenceest
abl
i
sht
hedef
enceofwai
ver
.

(
vi)

Whethert
heCour tofAppealwasnotinerr
ormakinganor
derthatt
hesai
dplant
/equi
pmentbe
del
iver
edtothe1strespondentsubj
ecttopaymentoft
heout
standi
ngbal
anceofthecont
ract
pri
cebythe1strespondenttotheappel
l
ant.

Iwi
l
lnowconsi
dert
hesei
ssues.1wi
l
ltakei
ssue1f
ir
st.

I
ssue1posest hequestionwhet hertheCour tofAppealwasnoti nerrorbyholdi
ngt hatpropert
y
i
nt heplanthadpassedt ot he1strespondentunderExhi bi
t1mer el
ybecauset heappel l
antdid
deli
verthesameatt hesi t
eoft he1strespondentatKont agora.AsIhav ealr
eadypointedout,it
i
snoti ndisputet
hatthet ransacti
oninissuei sacontr
actofsal ewhi chundersection1oft he
SaleofGoodsAct ,1893i sacont r
actwher ebythesell
ert r
ansfersoragr eestotr
ansf erpr
operty
i
ngoodst othebuyerforamoneyconsi derationcal
l
edt heprice.SeeDoakv .Bedford(1964)2
Q.B.587.
Undersecti
on1( 2)oftheSaleofGoodsAct ,1893,hereinaf
teralsor ef
erredtoastheAct,a
cont
ractofsalemaybecondi ti
onalorabsolute.I
t,oughttobest ressedfrom theonset,
however,t
hatacontractofsalereducedi
ntowr it
ing,suchasExhi bit1,mustbeconst r
uedand
gi
veneffecttoli
keanyotherwr i
tt
encontract.SeeCoddi ngt
onv .Paleologo(1867)L.R.2Exch.
193at200.So, whereany,
right,
dutyorli
abil
itywouldariseunderacont r
actofsaleby
i
mplicat
ionoflaw,such

784

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Iguh,
J.S.
C.)

B
C

D
E

G
H

ri
ght,dutyorl i
abil
i
tymaybenegat iv
edorv ari
edi nt
erali
aby ,
theexpressagr eementoft he
parti
es.Itisprinci
pal
lythei ntenti
onofthepar ti
es,asshownbyt hetermsoft hecont r
act ,
amongstot herconsi
derations, whi
chdet erminesthetimewhent heproper tyinthegoods, the
subjectmat terofacontractofsal e,i
stransferredorpassestothebuy er.Accor dingl
y, secti
on
17(1)oftheActpr ovi
dest hatwher ethereisacont ractf
orthesaleofspeci fi
cgoods, the
propertyinthem istr
ansfer redtothebuy eratsucht i
meast heparti
est heretointendi ttopass.
Nodi ff
icul
tycant her
eforear i
sewher et
hecont ractbetweentheparti
esexpr esslystateswhen
oratwhatt imet hepropertyi nsuchgoodspassest othebuyer.
Secti
on17( 2)oft heAct ,however,
provi
dest hatforthepurposeofascer t
ainingt heint enti
onof
theparties,r
egar dmustbehadt othetermsoft hecontract,t
heconductoft hepar ti
es, andthe
cir
cumst ancesoft hecase.SeeNanka- Brucev .Commonweal thTrustLtd.(1926)A. C.77.I t
shouldbepoi ntedoutt hatsecti
on18oft hesameActl aysdownt hr eeruleswhi chgov ernthe
contract.Theser ules,howev er
,aremerepr esumpt i
onsandt helawdoesper mi tpartiestoa
contracttoset tl
ethepoi ntf
orthemselvesbyanyi ntel
li
gibl
eexpressi onoft heirintention.See
McEnt irev.Cr ossleyBr os.Lt
d.(1895)A.C.457at467.Thesai drulesdonot ,howev er,apply
,to
thefactsoft hepr esentcaseandneednotbegi venanyconsi der
ationint hi
sj udgment .

Indeali
ngwit
hthequest
ionwhetherpropert
yinthegoodsinissuehadpassedf
rom t
he
appell
antt
othe1str
espondent
,thelearnedtri
alJudgeobser
vedasf ol
l
ows:

"I
tisalsoappar entthatbyvir
tueoft hedefaul
tinthesaidthr
eeequi
pmenthasnotpassedto
theplaint
if
f.Itther
eforehasnotest abli
shedanylegalri
ghtforwhi
chany,
equitabl
eremedy
couldbeor dered.Itheref
orefai
ledtoseeanybasi sfororderi
ngper
pet
ualinj
uncti
onorany
i
njunctionoror der
ingspecif
icperformanceoft hecontr
actcover
edbyexhi
bit1."

TheCourtofAppeal,f
orit
sownpar t
,wasoft
heviewthati
nsofarastheappel
lanthad
del
iver
edtheplantandequipmentatthe1str
espondent
'sKont
agorasi
te,
propert
yinthesai
d
goodshadpassedt othe1strespondent
.

Ithinkt hequest i
onoft hepropertyingoodsmustbedi sti
ngui
shedf rom thepossessionoft hem.
Inpar ti
culari
tneedsbeemphasi zedthatpropertyinthegoodsdoesnotconnot epossessi onof'
suchgoods.Thepr oper t
yinthegoodsmaybet ransf
erredtothebuy erbefor
eoraf terhehas
takenpossessi onoft hem or ,i
ndeed,atthetimet hegoodsaredeliv
er edtohim.Int hepresent
case, itiscommongr oundt hatthecontractofsalewhichisbindi
ngont hepart
iesandgov erns
thet ransacti
oni nissuei sExhibit1.Thequest i
onwhichmustnowbeaskedi swhetherf r
om a
closei nter
pretati
onofExhi bit1,onecancomet oadef i
nit
econclusionthattheintentionof,the
partieswast hatt hepr opertyinthegoodspassedt othe1strespondentont heinstall
ati
onof
thepl antatitsKont agor asit
e.

Thel awislongsett
ledthatininter
pret
ingtheprovisi
onsofawr it
tencontr
act,noaddi t
ion
theretoor,
subtr
actionther
efrom ispermissi
ble.Thewordsusedmustbegi v
eneff ecttoandno
wordshoul dbeignoredintheinter
pret
ationoftheintent
ionofthepart
ies,ot
herwiset hecour
t
will
beseenasr ewr i
ti
ngtheagr eementbetweent hepart
ies.SeeBookshopHouseLt d.v.
Stanl
eyConsultantLt
d.(
1986)NWLR( Part26)87at97.1wi
l
lnowexami
necl
osel
ythespeci
fi
c
condi
tionsunderwhicht
hetransact
ionwasenter
edinto.

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Iguh,
J.S.
C.)

785

B
C

E
F

G
H

Althoughthecontract
, Exhi
bit1,admi t
tedlyst
atedthattheplantandequi pmentwer etobe
deliv
eredbytheappellantatt heKontagorasiteofthe1strespondent ,i
tcareful
l
ymade
provisi
onsast ohowt hepriceoft heequipmentwer etobepai dbyt he1strespondent.Thi
swas
bypay mentof40%cashdeposi tandtheliqui
dati
onoft hebalancebysi xequalinstal
mentsof
N70,290.00.Eachofthesei nstalmentswassecur edbyapost -datedchequepay ableonthe
27thdayofev erymont h,beginningwiththe27thdayofApr i
l,1978andt erminatingonthe27t
h
dayofSept ember,1978.Inpar ti
cular
,thepart
iesexpressl
yst atedthus:

(
i)

Thatt
he1str
espondentuncondi
ti
onal
l
yandi
rr
evocabl
yagr
eedt
hatt
heappel
l
antshal
lhav
ea
l
ienonal
lthemachi
neryunt
ilsucht
imeast
heappel
l
antr
ecei
vedpay
mentoft
hef
ull
cont
ract
pri
ceofN702,
900.
00.

(
ii
)

Thatshoul
dthesai
d1strespondentf
ail
topayanyofthei
nstal
mentswit
hinonemont
hofthe
duedate,t
heappel
l
antshallt
akeimmediat
epossessi
onofthosegoodst
hatremai
nedunpai
d
forwi
thouthi
ndr
ance.

Iti
scl eartome, from acloseexami nationoftheabov eterms, parti
cul
arl
yt hepower sconfer
red
ont heappel l
antunderi t
em (ii
)abovet hatthetransacti
oninissuewascl ear l
ynotanabsol ut
e
salebutacondi t
ionalcontractofsale.Inmyv iew,iti
s,asthei ntent
ionoft hepar t
iesunderit
s
termst hatthetransferofthepr oper
tyi nthegoodswassubj ecttothefulfi
llmentbyt he1st
respondentoft hef ul
ltermsandexpr essedconditi
onsoft heagr eement.Thi smustbesoasi t
wasex pressl
y,agreedt obythepar t
iest hatt
heappel l
antshalltakeimmedi atepossessionof
thegoodswi thouthindrancethe1str espondent'sfai
lur
etocompl yful
ly,witht hecondit
ionsof
thet r
ansact i
on.

I
nthisr
egar
d,ref
erencemustbemadetosect
ion1sub-
sect
ions(
2),
(3)and(
4)oft
heSal
eof
GoodsAct
,1893whichsti
pul
ateasf
oll
ows:

"
(1)

……………………………………….
.

(
2)

Acont
ractofsal
emaybeabsol
uteorcondi
ti
onal
.

(
3)

Whereunderacont
ractofsaletheproper
tyinthegoodsi str
ansfer
redfrom t
hesel
lertothe
buyert
hecontr
acti
scall
edasal e;butwherethetransf
erofthepropert
yinthegoodsi st
otake
pl
aceatafutur
eti
meorsubj ecttosomecondi t
ionthereaf
tertobeful
fi
ll
edthecontracti
scall
ed
anagreementt
osell
.
(
4)

Anagreementt
osell
becomesasalewhenthet
imeelapsesorthecondi
ti
onsar
cful
fi
ll
ed
subj
ecttowhi
chtheproper
tyi
nthegoodsi
stobet
ransferr
ed.
"

Accordingl
y,whereacontractf
orthesaleofspecif
icgoods,asi nthepresentcase,ismade
subjecttoaconditi
onwhichtoalli
ntentandpurposessuspendst hepassingofpr oper
ty,the
propertywi
llnotpasstothebuyerattheti
meoft hemaki ngoft hecontr
act,butonlywhent he
agreedconditi
onasst i
pul
atedbytheparti
esisfulf
il
led.Unti
lthen,thecontr
acttakeseffectas
anagr eementtosell
,andnotanoutri
ghtorabsolutesaleofthegoods.

Inthepresentcase,
allthepost-dat
edchequesmeantt oclearthe60%ofthepur chaseprice
spreadoversixmonthswer edishonouredonpr esentat
ionforpayment.Otheraddit
ional
chequesissuedbythe1str espondentinrespectofthesepayment swerealsodishonouredand
ret
urnedunpaidonpr esent
ation.It
hinkthecourtbelowwasi nerrort
ohav eheldthatpropert
y
i
nt hegoodspassedt othe1st

786

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Iguh,
J.S.
C.)

A
B

D
E

F
G

H
respondentsimpl ybecausetheappel lant
,ascontr
actedinExhibit1,haddeliver
edt he
equipmentatt heKont agorasit
eoft he1strespondent.I
tismyv iewt hathadthatcour tproper
ly
construedExhibit1asawhol e,i
twoul dhavecomet otheirr
esisti
bleconclusi
ont hatthe
transacti
oninissuewasnotanabsol utesal
ebutacondi t
ionalcontractofsaleandt hatthe
propertyinthegoodscoul dnothav epassedt othe1strespondentast heagreedcondi ti
onsand
stipul
ati
onsgov erni
ngt hecontractofsalehadnotbeenf ulf
il
ledbyt he1strespondent .I
ssue
onemustt her
eforeber esolv
edi nfavouroftheappell
ant.

Imust,however,hastentopointoutthatmyr esol
uti
onofissue1infavouroftheappel
lant
cannotberegardedasanymat terofgreatmomentinthisappeal
.Thisisbecausetheult
imate
deci
sionIint
endt oreachinthisappeal woul
dappear,tobethesame,whetherornotproper
tyin
thegoodsinissueandpassedt othe1strespondentunderandbyvi
rtueofExhibi
t1.Forthe
moment ,Iwi
llproceedtoexami neissue2.

I
ssue2concernstheri
ghtofl
ien,ret
enti
onofpossessi
onorwi
thhol
dingdeliver
yofthegoods,
thesubj
ectmatt
erofthecont
ractofsale.Thequest
ioni
swhet
hertheexerciseoft
heser i
ghts
wasopentotheappell
antorwhethertheonlyr
emedyopentoi
twasanact ionfort
her ecover
y
ofthebal
anceoftheunpai
dcontractsum.

Al i
en, broadlyspeaki ng,is,arighttoret
ainthatwhichisinone' spossessionbelongingt o
anot hertil
lcertaindemandsoft hepersoninpossessionar esat i
sfi
ed.Theunpai dseller'
sli
en
howev er
, i
shisent it
lementt or etaint
hegoodsi nhispossessionunt i
lthebuy erhaspai dor
tender edthewhol eoft heirpri
ce.SeeMar ti
ndalev.Smith(1841)1Q. B.389at396.Thepoi nt
thatmustbeemphasi zedisthatt heunpai
dseller
'sri
ghtofl i
endependsonhi sbeingi n
possessi onoft hegoodsatt het i
meheexer ci
seshisrightoflien.Evenwher ethesellerisin
possessi onoft hegoodsasagentorbai l
eeforthebuyer ,
asist hecasei nthepresentappeal ,
hemayst i
llexerciserightoflien.SeePoultonandSonv .Anglo-Amer i
canOi l
Co.Ltd.( 1911)27
T.L.R.216.

Li
enar
isesi
fthef
oll
owi
ngcondi
ti
onsar
esat
isf
ied,
namel
y:
1.

Thesel
l
eri
sunpai
d;

2.

Thegoodshavebeensol
dwit
houtanysti
pulat
ionastocr
edi
t,ort
hest
ipul
atedper
iodofcr
edi
t
hasexpi
red,
orthebuy
erhasbecomeinsol
vent;and

3.

Thesel
lerisinpossessi
onoft hegoodsorpar tofthem.Accor
dingl
y,secti
on41(1)oftheSale
ofGoodsActpr ovi
desthatsubjectt
othepr ov
isionsoftheAct
,theunpaidsel
lerofgoodswho
i
sinpossessionofthem isentit
ledt
oalienov erthegoodsandther
eforetoretai
npossessi
on
of'
them unti
lpaymentortenderoftheprice.

By
,sect
ion38(
1)oftheAct
,thesel
l
erofgoodsi
sdeemedt
obean"
unpai
dsel
l
er"wi
thi
nthe
meani
ngoftheActwhen:

(
1)

t
hewhol
eoft
hepr
icehasnotbeenpai
dort
ender
ed;
or

(
2)

abil
lofexchangeorot
hernegotiableinstrumenthasbeenrecover
edascondi
ti
onalpayment,
andthecondit
iononwhichitwasr ecoveredhasnotbeenfulfi
l
ledbyr
easonofthedishonourof
thei
nstr
umentorother
wi seasinthepr esentcase.

Perhaps,
itoughttobementi
onedthatwhereanunpai
dsell
erwhoisi
npossessi
onoft
he
goodshasexercisedhi
sri
ghtofl
ienorret
enti
onresel
l
sthegoodspur
suant

[
2000]15NWLR
Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Iguh,
J.S.
C.)

787

C
D

E
F

G
H

tohi
spowersundert
heAct,t
hebuyeracqui
resagoodtit
let
heret
oasagai
nstt
heor
igi
nal
buy
er.
Seesect
ion48(
2)oftheSal
eofGoodsAct,1893whichprov
idest
hus:

"
whereanunpai
dsell
erwhohasexerci
sedhi
srightofli
enorret
ent
ionorstoppageintr
ansi
tu
r
esel
l
sthegoods,t
hebuyeracqui
resagoodti
tl
et her
etoasagai
nsttheor
iginal
buyer"

Undert hissub-section,t
heref
ore,the2ndbuy eracquiresagoodt i
tl
et othegoodsasagai nst
theoriginalbuyerandi twouldnotmat t
ert hattheunpaidsell
eratthetimeoft hesalewasnot
theowneroft hegoods.SeeTheBi neta( 1967)1W. L.
R.121.Seetoosect ion39(1)oftheSal e
ofGoodsAct ,
1893, wherei
nitisexpresslypr ovidedthatsubj
ecttothepr ovi
sionsoftheActand
notwithst andi
ngt hatthepropert
yi nthegoodsmayhav epassedtot hebuy er,t
heunpai dsell
er
ofgoodshasi nteraliaandbyi mpl
icationofl aw, al
ienoverthegoodsort her i
ghttoretainthem
forthepr i
cewhi l
ehei si
npossessi onoft hem.Suchunpai dsell
erisnotliableinconversionas
theoriginalbuyer,beingindefaul
t,isnotent it
ledtopossessionofthegoods.SeeLor dv .Pri
ce
(1874)L.R.9Ex54.
Thereisal sot hepr ovisi
onofsect i
on39( 1)
(c)which,subjecttothepr ovi
sionsoft heActand
notwithstandingt hatt heproper t
yint hegoodsmayhav epassedtothebuy er
,conf ersont he
unpaidsel lerarightofr esaleoft hegoodsbutasl imit
edbyt heAct.Andbysect i
on39( 2)ofthe
Act,evenwher et hepr operty,i
nthegoodshasnotpassedt othebuyer ,
theunpaidsel l
erhasin
additi
ont ohi sotherr emedi es,arightofwithholdi
ngdel iv
erysimil
artoandcoext ensi v
ewi thhi
s
ri
ghtsofl ienwher ethepr opertyhaspassedt ot hebuy erasprescr
ibedundersect i
on39( 1)as
aforesaid.SeeExpar t
eChal mer s( 1873)L.
R.8Ch.App.289at292.I tisthusappar entthata
l
ien,althoughi tmayonl yarisestrictosensuwhent hepropertyhel
dbel ongst oanot her,onthe
otherhand, t
heFi ghttowi thholddel i
veryexerci
sedbyt heunpaidsellerov ergoodsi nwhichhe
sti
llhast hepr opertyhas, quiteri
ght l
y,beendescribedasaquasi -l
i
en.SeeExpar teChal mers
(supra).

I
nther
esult
,theref
ore,t
heunpaidsalar
yhast hesamer
ightof'
retent
ionorwit
hholdi
ngdel
i
ver
y
oft
hegoodsinhispossessi
onsol dwhetherornott
heProper
tyinthem haspassedtot
hebuy
er.
SeeRvWardLt d.v.Bi
gnal
l(1967)1Q.B.534at545.

Applyingt heabov epr inci

pleofl awt othef actsoft hepr esentcase, iti
scleartomet hat
whetherornott hepr oper t
yi nthegoodshadpassedt othe1st ,respondentont hedel i
veryof
theplantandequi pmentati tsKont agorasi te,t
heappel l
ant,oncet hegoodswer eini ts
possessi on,woul donl ybeliabletodel iv
ert hem tot he1str espondentonpay mentort enderof
thebal anceoft hepur chasepr i
ce.Seesect i
on28oft heSaleofGoodsAct ,
1893) .Theappel l
ant
wasent it
leduntilthent oretainpossessi onoft hegoods, thesubj ectmatterofthecont r
actof
sale,
ei therbyv i
rtueofi tsli
enasanunpai dsel ler
,ifthepr opert
yhadpassed( Seesect ion39( 1)
)
ofthe, SaleofGoodsAct ,1893, and1donotsohol d, orbyv i
rt
ueofhi sri
ghttowi thhol ddeliv
ery
ofthegoods, i
ft hepr opertyhadnotpassed( Seesect ion39(2)oft heAct).Ineit
hercase, t
he
appell
ant ,
asanunpai dsel l
erhadar ighttor esellt
hegoodsasi tappearsitdid.Seet ooWar d
Ltd.v.Bi gnal
l(supr a)perDi plock,L.J.Ithi
nkt heappel l
antwasent i
tledi
nalltheci rcumst ances
ofthi
scaset oexer ci
sei t
sr i
ghtofl i
enand/ orretentionofpossessi onofthegoodsi ni ssueas
provi
dedbot hundert heActandpur suanttot hetermsofExhi bit1.

I
twast
hensubmi
tt
edbyl
ear
nedcounsel
fort
he1str
espondentt
hatt
he

788

Ni
ger
ianWeekl
yLawRepor
ts

29December2000
(
Iguh,
J.S.
C.)

B
C

E
F

G
H

appell
antlostitsri
ghtoflienov erthegoodst hemomentpossessi onoft hem wasf i
rstobtai
ned
bythe1str espondentbydel i
veryati tsKont agorasite.Withoutdoubt,sect i
on43( 1)oft heSale
ofGoodsAct ,1893provi
dest hatt heunpaidsel lerofgoodsl oseshisrightofl ienorrightof
ret
entionwhen, int
erali
a,thebuy erorhi sagentl awfullyobtai
nspossessi onoft hegoods.Buti t
i
sset t
ledlawt hatalt
houghpossessi onoft hegoodsmayhav epassedt ot hebuy erorhisagent
soast oterminatetheunpaidsel ler'
sstatutoryrighttoal i
en,thecont r
acti tsel
fbetweent he
part
ies,asisthecasei nthepr esentappeal ,maymakeexpr essprovisi
onf ororcr eateaspeci al
ri
ghtinthesellerwhichisanalogoust oalien.Wher esuchexpr essprovisioni sagreedt obythe
part
ies,i
tcannotbedoubt edthati twill
bebi ndingont hepar t
ies.

I
nthisconnect
ion,
itoughtt
obestr
essedthatr
ight
swhi chhavebeenconf
err
edonsell
ersor
buy
ersundertheSaleofGoodsAct
,1893areri
ghtsthatari
seundert
hecontr
actbet
weenthe
parti
esbyt hei mpl i
cationofl aw.Sect ion55oft hatAct ,
howev er,providest hatwher eanyr i
ght,
dutyorl i
abi l
i
t ywoul dar i
seunderacont ractofsal eofgoodsbyi mpl i
cationofl aw, itmaybe
negat i
veorv ari
edi nterali
abyexpr essagr eementbet weent hepar ti
es.Accor di ngly, i
f'the
contractbet weent hepar t
iesexpr esslycr eatesal ien, arightofr etent
ionof ' t
hegoods,
repossessi ont hereoforot herf orm ofsecur ityf ort hepr i
ce,suchexpr esst ermswi l
l prevailover,
andt hereforeexcl udet hest atutoryimpl icationofal i
enet c,atleasttot heext entofany
i
nconsi stencywi ththeexpr esst erms.SeeReLei th'sEst ate( 1866)L.R.1P. C.296at307and
308.Thi sisbecausepar ti
est oacont ractenj oyt heirf r
eedom t ocontractont hei rownt ermsso
l
ongast hesear enoti ll
egal and/ orunl awf ul
.Thet ermsofacont r
actbet weenpar ti
esar e
thereforeclot hedwi thsomedegr eeofsanct ityandi fanyquest ionshoul dar isewi t
hr egardt o
thecont ract,thet ermsi nanydocumentwhi chconst itut
est hecont r
actar einv ariablyt hegui de
toitsinterpretation.Whenpar ti
esent erintoacont ract,theyar eboundbyt het ermsoft hat
contractandi tcannotbeany thi
ngbutunf ai
rt or eadi ntosuchacont ractthet er msonwhi ch
therehasbeennoagr eementsav eter mswhi chmayar i
sebyi mplicati
onofl awandi nr espect
ofwhi cht herei snothingint hecont ractt hatexpr esslypr ovi
desot herwise.SeeAl hajiAbdul l
ah;
Babav .NigerianCi vi
l Avi
ationTr ainingCent re, Zar i
a( 1991)5NWLR( Pt .
192)388at392and
393.

Exhibit1makesexpr esspr ovisionsfortherightsoflienandimmedi at

epossessi onoft he
goodsi nissuereser vedtot heappellantast er
msofsecur i
tyforthecontractprice.Itseemst o
met het hatevenifthegoodswer eatallmat eri
altimesinthepossessi onoft he1str espondent
,
therewascl earl
ybyexpr essagr eement, r
eservedtot heappel
lantast hesell
er ,andasbet ween
i
tself'andthe1str espondent ,thebuy er
,aspeci al
pr oper
tyorinteresti
nthepl antand/ or
equipmentunt ilt
hef ullpri
cewaspai d.Thispricewasnev erfull
ypai dandIent ertai
nnodoubt
thattheappellantrightl
yex ercisedit
sr i
ghtsov erthegoodsasagr eedtobyt hepar t
iesinExhibi
t
1.SeeBenj amin'sSal eofGoods, 1974Edi t
ion,paras.1071and1083.

Final
ly
,onissue2, i
st hefindingoft heCour tof '
Appeal t
hattheonl yremedyopent othe
appell
antwasanact i
onf orther ecover yoftheunpai dbal
anceoft hecont ractsum andnoti ni
ts
exerci
seoft heri
ghtofMenand/ orpossessi on/r et
enti
onoft hegoodsi nthef ir
stplaceandasI
haverepeatedly
,pointedout ,thecont ractExhibit1conferstheexerciseoft herightsofli
en
and/orpossessionoft hegoodsont heappel l
antassecur i
tyf ort
hepr iceoft hepl antand
equipment.Thisisquiteapar tfr
om i tsright
sov erthegoodsundert hepr ov i
sionsoft heSal
eof
GoodsAct ,1893.Inthesecondpl ace, theappellant'
sri
ghttobepai dt hecont ractpr i
ceofthe

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goodsi s, underthelaw, quit

eindependentoft heexi stenceofal ien;alienbeinganaddi ti
onal
securitygi v
entot hesellerwhohasy ettobepaid; buthehasar i
ghtt obe'paidbesidesand
i
ndependent lyofhislien.SeeTheEl der(1893)P.l19at131.I ti
st husset t
ledthatther ightof
thesel l
ert osuef orthepriceofthegoodsi sindependentofhi sot herremediesagai nstt he
goods.I ndeedundersect i
on43( 2)oft heSaleofGoodsAct ,1893, t
hesel l
erdoesnotl oosehis
ri
ghttol ienmer elybecausehehasobt ai
nedjudgmentf orthepr iceoft hegoodsunl essand
unti
l t
hebuy erhasf ull
ysatisf
iedthejudgmentdebtbypay mentoft hef ul
lcontractpricet othe
sell
er.TheCour tofAppeal ,withr
espect ,wastheref oreinerrorwheni theldthattheonl y
remedyopent otheappel l
antwasanact ionforther ecov er
yoft hebal anceofthepr i
ceoft he
goodsandnoti nitsexerciseoftherightofli
enorr etenti
onoft hepl antpursuanttot het ermsof
ExhibitI.

Thereisnextissue3whichposest hequesti
onwhetherthecourtbel
owwasr i
ghtwheni thel
d
thataccept
anceofnegotiabl
einstr
ument saspaymentfortheplantperseconvertedt
he
condit
ionalsal
eoftheequipmenttoanabsol ut
eoroutri
ghtsal
e.Inthisregar
d,itmustbe
concededthatwhereanegot i
ablei
nstrumentisgi
venbyadebt ortohiscredi
tor,t
hequestionof
uponwhatt ermsiti
sgiv
eni sclear
lyoneoffactdependi
ngont heintent
ionofthepart
ies.See
Palmerv .Bramley(
1895)2Q.B.405andGunnv .Bol
ckow,VaughanandCo.(1874-
1875)L.
R.10
Ch.App.491at501.I tmusthoweverbeaddedthatthei
ntent
iontot
akeaninstr
umentin
absolutepay mentf
orgoodssol
dmustbecl ear
lyshownandnotdeducedfr
om ambiguous
expressions.

Therecanbenodoubtt hatpaymentmay ,byagreement ,asinthepresentcase, bemadeby

meansofanegot i
ablei nst
rumentsuchasacheque.I tisequall
ywel lsett
ledthatpaymentby
meansofanegot i
ablei nst
rumentisprimaf aci
econdi t
ionalontheinstrumentbeinghonour ed
atmat uri
ty.Theseller'
sr emedytosuef orthepriceissuspendeddur i
ngt hecurrencyofthe
i
nstrument .Ift
heinst r
umenti shonouredatmat urit
y,theamountt hereinwil
laccordingl
y,be
deemedef f ect
ivel
ypai d.If
,ontheotherhand, i
tisdishonoured,t
hesel l
er'
sremedi esbothunder
thecontractofsalei nissueandtheSal eofGoodsAct ,1893automat i
call
yreviveandbecome
enforceabl
e.Thatseemst omet obet hepositi
onoft helaw.Seetoosect ion38(1)(b)ofthe
SaleofGoodsAct ,1893.

I
nthepr esentcase,i
tisnotindoubtt hatt heintenti
onofthepart
ieswasthattheenti
rebalance
ofthepurchasepricebesecur edbypost -datedcheques.Theissuewasclearl
ynotaquest i
on
ofaccepti
ngt hepost-datedchequesasunqual ifi
edpaymentforthegoodsbutasapr omiseto
paythechequesont heduedat es.Asthingst urnedout,
howev er
,al
lthechequesinquest
ion
were,onpresentati
onf orpayment ,
dishonour ed.

Itcannotbedisputedthattheaccept anceofanegot iabl

einst
rumenti snormallytreatedas
conditi
onalpayment.Cer t
ainl
y,ont hef act softhepresenttr
ansaction,t
henegot iable
i
nst r
umentsissuedbyt he1str espondentandaccept edbytheappel l
antweret akenas
conditi
onalpayment.Itismyv iewt hatwher e,asinthepresentcase,anegotiablei nst
rument
takenasconditi
onal paymentfort hepr iceofgoodsi sdi
shonoured, v
ariousremedi esforthe
breachofsuchcont ractofsaleincludingbutnotl i
mitedtoanact i
onf ortheunpai dbalanceare
avail
abletothesell
erdependingont hef actsandcircumstancesofeachcase.It hinkthecourt
belowwasi nerrortoholdthatt heaccept anceofanegot i
ableinstr
umenti nallcasesi psofact
o
convertedthecondit
ionalsaleinissue, asi nthepresentcase,intoan

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absol
utesal
eint
heabsenceofanyev
idencet
oest
abl
i
sht
hatt
hepar
ti
esagr
eedt
osuch
arr
angement.

Iwillnowturntoissue4.Thi
sdealswithwhet hertheCourtofAppealwasnoti
nerrorbyhol
ding
thatthe1strespondenthadestabl
i
shedal egalrighti
ntheequipmentastoent
it
leitt
othe
equitabl
erel
iefsclai
med.Iwil
l,
inpart
iculardealwiththeequi
tabl
erel
ief
sofspecif
ic
performanceandi nj
unct
ioncl
aimedbyt he1str espondent
.

Adecr eeofspecifi
cper f
ormancei saform ofr eli
efthatispur elyequi t
ableinorigi
nandi sone
oft heear l
i
estexampl esoft hemaximt hatequityactsi nper sonam.Thef undament alrul
eis
thatspeci f
icperfor
mancewi l
lnotbedecreediftherei sanabsol uter emedyatl awinanswert o
thepl aint
if
f'
sclaim,thatistosay ,wher
et heplainti
ffwoul dbeadequat elycompensat edbyt he
commonl awremedy ,ofdamages.SeeHut tonv .Wat ti
ng( 1948)Ch. 26at36andReScot tand
Alvarez" sContract
,Scottv .Alvar
ez(1895)2Ch.603C. A.at612and615.Thej uri
sdicti
onin
specificperfor
mancei sbasedont heinadequacyoft heremedyatl aw.Seet ooWhi teleyLtd.v
.
Hilt(1918)2K. B.808at819andReCl ar
ke( 1887)36Ch. D.348at352.I nFl
intv.Brandon
(1803)8Ves.159, thelearnedMast eroftheRol l
ssucci nctlyexplai
nedt heposit
ionasf oll
ows:
"Thi
scourtdoesnotpr ofesst
odecreeaspecifi
cper f
ormanceofcont
ract
sofeverydescri
pti
on.
Iti
sonlywher ethel egal
remedyisinadequat
eordef ect
ivet
hati
tbecomesnecessaryf
orcourts
ofequit
ytoi nt
erfere.Int
hepresentcase,compl
etejusti
cecanbedoneatlaw.Themat t
erin
contr
oversyisnot hi
ngmor et
hanthesum itwi
llcosttoputt
hegroundint
heconditi
oninwhich
bythecov enantitoughttobe"

Seet
ooBeswi
ckv
.Beswi
ck(
1968)A.
C.58at63.

Sti
llontheissueofspecifi
cperfor
manceoft heagreementfortheinstal
lati
onofthepl antby
theappell
antatKaduna, at
tent
ionmustbedr awnt oasecondequallyimpor t
antpri
nciple.Thi
s
pertai
nstothewel lest
abli
shedpri
ncipl
ethatcontract
swhichareper sonalinnat
ureorwhi ch
i
nv olv
etheperf or
manceofpersonalservi
cewi l
lnotbespeci
fi
call
yenf orced.So,
inRigbyv .
Connol (
1880)14Ch. D.482at407,Jessel,
M. R.wasobli
ged,andquiterightl
yinmyv i
ew, t
o
observeasf ol
lows:

"
Thecourtshaveneverdr
eamtofenforcingagreement sstr
ict
lyper
sonal
int
hei
rnatur
e,whet
her
t
heyareagreementsofhir
ingandser
vice,bei
ngt hecommonr el
ati
onofmast
erandserv
ant,
or
whet
hertheyareagreementsfort
hepurposeofpl easure.
..
"

Inthepresentcase, i
tcannotbedi sputedthatthereisanabsol uter emedyatl awf ortheall
eged
breachcompl ai
nedofbyt he1str espondentint hatthe1strespondentwoul dnotonl ybe
adequatelycompensat edbyt hecommonl awr emedyofdamages, itdidinfactmakeacl aim
fordamagesf orthebr eachcompl ainedof.I
tisalsocleartomet hatt hecontractsoughtt obe
specif
icall
yenf orcedisper sonalinnat ur
eand/ orinvol
vetheper formanceofper sonal ser
vices.
Thecont ractissimpl ythatofhi ringandser vi
cebet weenthe1str espondentandt heappel lant
forthetransportationoft hepl antandequi pmentf rom Kontagorat oKadunaatanagr eedfee.It
wasanempl oymentand/ oramast erandservantcontract
.Inal l
theseci rcumstances, iti
sclear
tomet hatt hecour tbelowwas, withrespect,
iner r
ortohavedecr eedspeci f
icperformanceof
suchacat egoryofcont ract .

Ont
hei
ssueoft
heper
pet
ual
inj
unct
ioncl
aimed,
iti
sanot
herf
undament
al
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J.S.
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pri
ncipl
ethatthecourtwillonlygrantaper petuali
njuncti
onatthesuitofaplaint
if
finsuppor tof
arightknownt ol
aworequi ty.Theconductofapl ainti
ffmustalsobetakenintoconsiderat
ion
i
ndet ermini
ngwhetherornott ogr antaninjuncti
on.Thepl ai
nti
ffmustcomet oequitywith
cl
eanhandsandi f,t
herefore,heisi nbreachofhisownobl i
gati
ons,hewill
notbegr antedan
i
njuncti
on.Inthesamev ein,hewhocomest oequitymustdoequi ty.Accordi
ngly
,aplainti
ffwill
notsucceedinhisclai
mf orinjunctionifheisunableorunwi l
li
ngtocarryouthisown
obli
gati
ons.

I
nt hepresentcase,nori
ghtknowntolaworequi t
ywasestabli
shedbyt herespondentoverthe
plantand/orequipmenti
nissue.Thecourtbelowdidnotdi
stur
bt hef
indingofthetri
alcourt
thatthe1strespondentf
ail
edtofulf
ili
tsobli
gati
onsunderExhi
bit1astherewasan
outstandingdebtofN635, 059.78r epresenti
ng60%oft hepur chasepr i
ceoft heplantand
equipment .Ihavealsofoundt hatnol egalorequit
ablecl aim wasest abli
shedbyt he1st
respondenti nrespectofthegoodsandt hatt
heappel l
antact edwi thinitsstatutor
yand
contractualri
ghtsindisposingofbysal ethesai
dpl antandequi pment .Ithi
nkt hattheequi
tabl
e
doctri
nest hathewhoseeksequi t
ymustdoequi t
yandt hathewhocomest oequitymustcome
withcleanhandsar eappli
cableint hi
scaseandar esuf ficienttodef eattheclaimsoft he1st
respondentf oranyequitabl
er el
iefs.I
ssue4i sthereforer esolv
edi nf avouroftheappel l
ant
.

Issue5concernst hequestionofwhet herornottherightsoflien,retentionand/orimmedi ate

possessionoverthegoodspr ovi
dedf orinExhi
bit1wer ewaivedbyt heappel l
antinthepr esent
proceedi
ngs.Inthisregard,Ineedonlyst at
ethatthedef enceofwai v erwasnei t
herpl eadedby
did1strespondentnorwasev idenceont hepoi
ntled.Itisabasi cprincipleorlawthatpar ties
areboundbyt hei
rpleadingsandi tisthecasetheypr esentont hebasi softhosepl eadingst hat
mustbeconsi deredbyt hecour t
soflaw.Noquest ionofwai verthereforearisesinthiscaseand
thecourtbelow,withrespect,wasi nerrort
ohavehel dthattheappel lanthadwai veditsrightof
l
ienand/orrepossessionoft hegoods.

Therei sfinallyissue6whi chchal lengest hecompet enceoft hecour tbel owt ohav eor dered
thattheequi pmentbedel i
veredbyt heappel lanttothe1str espondentsubj ectt opay mentof
theent i
reout standi
ngcont r
actsum byt he1str espondentt othesai dappel lant .Ihav eear l
ieron
i
nt hisjudgmentsetoutt het hr
eer el i
efsclaimedbyt he1str espondentagai nstt heappel lantin
thesepr oceedi ngs.Perhaps, Ishoul dalsost atethattheappel l
antf i
l
ednocount er-claim against
the1str espondentbef orethet ri
al courtforpay mentoft hebal anceoft hecont ractsum.It hinkI
needt oemphasi zethatthepr i
ncipleofl awi swel lsett
ledthatacour toflawmustnotgr anttoa
partyar eliefwhi chhehasnotsoughtorwhi chismor ethanhehascl aimed.SeeEkpeny ongv .
Ny ong( 1975)2S. C.71at81-82, Makanj uolav .Balogun( 1989)3N. W. L.R.( Part108)192at
206; Olurotimi v.Ige(1993)8N. W.L. R.(
Par t311)257at271et c.Itiscl earthatt hereliefinissue
wasnei t
herbef orethetri
alcour tnorbef oret heCour tofAppeal .I
npar ticul
ar ,thet ri
alcour thad
nooppor tunityofmaki nganypr onouncementont hiscont rover si
alreli
efwhi chwasgr atuit
ously
madei nfav ouroft heappellantbyt hecour tbelow.Itseemst omepl ai
nt hati ssue6mustbe
resolvedi nfav ouroftheappel lant.

Iti
sfortheabov eandtheotherreasonscont
ainedinthejudgmentofanyl
earnedbrot
her,Kuti
gi,
JSCt hatI
,too,al
lowthisappealandsetasi
dethejudgmentandor der
softheCourtofAppeal
madeont he10t hdayofApr i
l
,1991intheseproceedi
ngs.Thejudgmentandorder
softhet r
ial
courtareherebyrest
oredandt he
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1str
espondent
'scl
aimsar
eher
ebydi
smi
ssed.Isubscr
ibet
otheor
derf
orcost
smadei
nthe
l
eadi
ngjudgment.

KATSINA-ALU,J.
S.C.
:Ihadthepri
vi
legeofreadi
ngIndraf
ttheJudgmentofmyl ear
nedbr
other
,
Kuti
gi,
JSCI nt
hisappeal
.Iagreewit
hIt.Fort
hereasonshehasgiven.Ial
sowouldall
owt
he
appealandsetasi
dethedecisi
onofthelowercourt
.Iabi
debytheorderforcost
s.
AYOOLA,J.S.
C.:
(Dissent
ingOpi
nion)Byt
hel
ett
erdat
ed28t
hMar
ch,
1980t
hepl
aint
if
fwr
otet
o
thedef
endantasfoll
ows:

"Weherebyuncondit
ional
lyandirr
evocablyundertaketopayAf rotecTechni
calSer
vicesNiger
ia
Limi
ted(herei
naft
errefer
redtoasAf r
otecthetotal sum ofN702,900.00(
SevenHundr edand
TwoThousand, Ni
neHundr edNaira)i
nconsiderationoft hei
rsupplyi
nguswiththe
undermenti
onedequipmentont hefol
lowingtermsandcondi ti
ons."

Hav
ingstatedtheequi
pmentandt
ermsandcondi
ti
onsast
opr
icedel
i
ver
yandcommi
ssi
oni
ng,
t
heplai
nti
ffstatedt
heter
msofpaymentasf
oll
ows:

"
Weconfi
rmt
hatt
het
otal
cont
ractpr
iceofN702,
900.
00i
stobepai
dtoAf
rot
econt
hef
oll
owi
ng
t
erms.

40%cashdeposi
tofN281,
160.
00pay
abl
einadv
anceofdel
i
ver
y.

Balanceof60%pay
ablebysi
xequalinst
almentofN70,
290.
00..
.eachsecuredbypost
-dat
ed
chequespayabl
eonthe27t
hApri
l,27thAugustand27t
hSeptemberrespecti
vel
y.
"

Thenf
oll
owedprov
isi
onastoi
nter
estchar
gedont
hei
nst
alment
alpay
ment
,ther
ateofwhi
ch
wasnotst
ated,
andthef
oll
owi
ngterms:

"Weuncondi
ti
onall
yandirr
evocabl
y,agr
eethatAfr
otecshal
lhavel
ienonal
lthemachi
ner
yunt
il
sucht
imeasAf r
otecrecei
vepaymentoftheful
lcontr
actamountofN702,
900.
00.

Weal
soconf
ir
mthatshoul
dwef
ail
topayanyoft
hei
nst
alment
sdet
ail
edabov
ewi
thi
none
monthoftheduedate,
Afr
otecshal
ltakeimmediat
epossessi
onofthosepr
oper
ti
esinspeci
e
t
hatremainsunpai
dforwi
thi
nthesubjectoft
histr
ansact
ionwi
thouthi
ndr
anceandwit
hout
r
ecourse.

Uponmaki ngadownpay mentof40%oft hepur chasepr i

cet hedef endantinstalledt he
equipmentatthepl ai
nti
ff'
ssiteatKont agora.Theplai nt
if
fdidnotmeeti tsobl i
gat iont opay
i
nstall
ments.Itgaveasr easonbr eakdownoft heequi pmentshor tl
yafteritsinstallati
onat
Kontagor
aandf ai
l
ur eofthedef endanttosuppl ysparepar t
st oresuscitatethebr okendown
equipment.Beli
evi
ngt hattheequi pmentwoul dbeputt omor epr ofi
tableusei nKadunat he
pl
ainti
ffr
equestedt hedefendantandt hedefendantagr eedinJanuar y
,1980t ot ransf erthe
equipmenttoKadunaandi nstallthesameont heplainti
ff'
ssite.Thedef endantdi smant l
edthe
equipmentpursuantt othatagreement .Howev er,i
ttranspir
edt hatinsteadoft akingt hem to
Kadunaitkeptthem initswar ehouse.Afterseveraldenialsthatithadr epossessedt he
equipment,t
hedef endantsomet i
mei nApril
,1980cl aimedt hatithadr epossessedt hem.

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

793

A
B

C
D

F
G

H
Onthesef actstheplaint
if
fsuedt hedefendant.Byit
sdefencethedefendantassertedt hatit
was" perfectlyent
itl
ed"totakepossessi onoftheequipment"assuchactionwaspr ovidedf ori
n
thesaleagr eementbet weent heparti
es."Thedefendantcl
aimedthatitexerci
sedar i
ghtofl ien
onthepl antaf t
erallnegoti
ati
onsf orpay menthadcoll
apsed.Thedefendantaverr
edt hatt he
plai
ntif
fhav ingfai
ledtoper f
ormit spartofthecontr
actwasnotentit
ledtother el
i
efscl aimed.

Thelearnedtri
aljudge,Ibiy
eye,J,(ashethenwas)dismissedtheact i
on.Hef oundthatthe
defendantri
ghtl
yexer ci
sedi t
srightofli
en.Healsohel
dt he'vi
ewt hatbyvir
tueofthedef aul
tof
theplai
ntif
fpropertyintheequipmenthadnotpassedt ot hepl
aintif
fand,consequentl
y,the
plai
nti
ffhadnotest abli
shedanyl egalr
ighttot
heremedieshecl ai
med.Al lt
hesefindi
ngswer e
madeaf terhehaddescr ibedthetransacti
onasahirepurchasetransacti
on.

Ont heappeal t
otheCour tofAppeal thepl
aint
if
f'
sargument,apartfrom theargument sont he
nowi nconsequenti
alissuesofnov at
ionandwai v
er,wasthatthepropert
yi ntheequi pmentdid
passt otheplai
nti
ffandt hatt
het r
ialj
udgewaswr onginholdingtothecont r
ary.Itwasfurther
arguedthatby ,
parti
ngwi thpossessi
on, t
hedefendantext
inguisheditsr
ightoflien,andthatthe
salebeinganout r
ightsalethedefendanthadnor i
ghtofrepossession.

Forhi
spartcounsel
forthedefendanti
ntheCourtofAppealar
guedt
hattheplai
nti
ffhadf
ail
ed
toest
abl
ishalegalr
ightandthatthedef
endanthadestabl
i
shedit
sri
ghtofli
en.

UthmanMohammed, J.
A.C,
( ashet henwas)hadnodif
fi
cult
yinal
lowi
ngt
hepl
ainti
ff
sappeal
.It
i
snotdi f
fi
cultt
ofoll
owt hereasoningthatl
edhimtothatconcl
usi
onfr
om t
hef
ollowing
passagesfrom hi
sjudgmentwhi chInowquot e:
"
Inrel
yi
ngont
heri
ghtofl
ienthe1strespondent(
thedefendant
)madeitabundant
lycl
eart
hati
t
waspassi
ngt
hepr
opert
y,andownershiptotheappel
lant(t
heplai
nti
ff
)"

"I
nt hecasei nhandt heappell
antclai
medowner shipoftheequipmentanditisquitecl
eart hat
the1str espondentdi dnotdenythatasser
tion.Thel ear
nedcounsel f
ortherespondent
shadno
answert ot hecl aim bytheappel
l
antt hatt
it
let ot
heequi pmenthadbeenpassedov ert
ot he
appellant.
"" Thet oneofsomeoft hedocument sclearl
yshowst hatt
he1strespondenthad
transf
er r
edt itl
eoft heequipmenttotheappel l
ant.Theonlysafetyval
vethecompanyr etained
wast hel i
enov erthepropert
ywhichwasagr eedtobeexer ci
seduntilt
hebalancedueont he
equipmentwaspai d.
"

Onthequest
ionofl
i
en,
thel
ear
nedj
ust
iceoft
heCour
tofAppeal
(ashet
henwas)hel
dthat
si
nce:

"
..
.Theequipmentindi
sputewasnoti
npossessi
onoft
he1str
espondentwhenheexer
cised
t
herightofr
epossessi
on.
"

t
heargumentt
hatt
hedefendantwasanunpai
dsel
l
eri
npossessi
onoft
hegoodsunt
ilpay
ment
wasnotav
ail
abl
etothedefendant
.Hehel
dthat
:

"Thef
actthatthesel
lernol
ongerhol
dst
hegoodsinhiscapaci
tyassel
ler,
asisthecaseher
e,
butasthebuyer'
sagentorbai
l
ee,maybeev
idencethathehaswaivedhisl
ien.
"

Thelear
nedJusticefur
therwentontosaythatacceptancebythedefendantofnegoti
abl
e
i
nstruments,
cheques,aspaymenthadconv er
ted"acondit
ionalpay
,toanabsolutepayment
,
ther
eby,r
emov i
ngthenecessit
yforexer
ciseofli
en."

794

Ni
ger
ianWeekl
yLawRepor
ts

29December2000
(
Ayool
a,J.
S.C.)

B
C

E
F

G
H

Intheresult
,theCourtofAppeal all
owedtheplaint
iff
'sappealandenter
edj udgmentfort
he
plai
nti
ffrest
raini
ngthedefendanti nter
msoft heplai
ntif
f'scl
aim andor
deringthatt
he
equipmentbedel i
veredtotheplainti
ffoncondit
ionthatitpaysthebal
anceout st
andi
ngonthe
purchaseprice.Theclai
mf ordamageswasr emitt
edt otheHighCourtforassessmentof
damages.

Thedefendanthasnowappeal ed.Forconveni
encet
hedef endant
,whichistheappell
antinthi
s
appeal,
isref
err
edt oas"t
hedef endant
;"whil
ethepl
aint
if
f,whichist
her espondent
,conti
nuesto
berefer
redtoas"theplai
nti
ff
'.

I
tisev i
dentt
hatthetr
ansactionwi
thwhichthi
scasei sconcernedwasclearl
yoneofsal eof
goods.Thetri
alj
udgehadsomedi f
fi
cul
ti
esinclassi
fyingthenatur
eofthetransact
ion,whichhe
descri
bedas"ahirepurchaseorcondi
ti
onalsal
e".Proceedingonthebasi
sthat:"i
tissett
ledlaw
thatcondi
ti
onalsal
eshar dl
ypassti
tl
etothepurchaserunlesstheatt
endantcondit
ionshav e
beenexecuted,
heinev
itabl
ycametotheconcl
usion,i
neff
ect
,thatt
her
ecoul
dhav
ebeenno
sal
e,andtheref
ore,
nopassingofpr
opert
y,unt
ilpr
icewasful
l
ypaid.

Theambi v
alenceofthetri
alj
udgei ndecidi
ngt henatureoft hetransact
ionisunder st
andabl e,
though,notjusti
fi
ed.Hir
e-pur
chase, cr
editsale,condi
ti
onal credi
tsaleareallcognat e
transacti
ons,thecommonf actortheyshareisdef er
redpay mentofpar torallofthepur chase
price.Thesethoughcognatetransacti
onsar edisti
ngui
shabl e.Forabetterunderstandingand
resoluti
onoftheissuesthathavearisenincasessuchast hepr esentone,thedisti
nctionshould
bebor neinmi ndandnotglossedov er.

I
nt hehire-
pur chasetr
ansact
ionther
eisnoquest
ionofasalecomingi
ntobei
ngunlessandunt
il
thehirerexercisesatt
heappropri
ateti
metheopt
iontopurchaset
hegoods.Mixedi
nahire-
purchaset r
ansact i
onisacontr
actofhi
reandopt
iontopur
chase.

Inthecr editsal
et r
ansact ionthereisasaleoncr edi
t.Thecreditmayt aketheform ofpayment
oft heent i
repurchaseatanagr eedf utur
eti
meorpay mentofthepurchasepr i
cebyagreed
i
nst al
ment s.Inacr editsalethereisnoquest i
onofanagr eementt opurchaset hegoodsata
futuretime.Apur chaserofgoodsunderacr editsal
eagreementdoesnothav etheopti
on,
whi chthehi r
erhas, ofreturni
ngthegoodsandf reei
nghimselff r
om theobl i
gati
ontopayf ur
ther
i
nst al
ment s.Twocaseswhi chshowt henatur
eandi ll
ust
ratetheconsequencesofacr edi
tsale
transactionareOsei Kofiv.Mensah[ 19301]1WACA76andYakassai v.IncarMotorsNigeri
a
Ltd.[1975]NSCC284bot hofwhi chhav ebeenrefer
redtobycounsel i
nthisappeal.

I
tisevidentt
hatacredi
tsal
eisnotahire-
purchasetr
ansact
ion.Acredi
tsal
eisasal
e
t
ransacti
onsubjectt
othesameprinci
plesi
nr egar
dtothepassingofpr
opert
yinsal
e
t
ransacti
onswhicharenotoncr
edit.

Thet hirdcognat etransactioni sthecondi t

ional creditsale,whichisdist
inguishablefr
om ahi re-
purchaset ransact i
onbecauseoft heabsenceofopt iontopur chasebyt hebuy erortoresile
fr
om t hesal ebyt heseller.Acr editsalemaybecondi t
ionalwhenbyt heagr eementoft he
parti
espr oper t
ypassest ot hebuy eroncondi t
iont hathepay sthepurchasepr iceasagr eed.
Thet ransactionint hecaseofSengenav .Poku[ I
XWACA143)i sanexampl eofsuch
conditionalcreditsale.I
nt hatcaset hebuy erboughtal orryont er
mst hatpartoft hepurchase
pri
cewoul dbepai dbyinst all
ment s.Thesel lerreservedt ohimselftheri
ghtt oselloruset he
l
orryashi sowni npay mentoft hebal ancer emai ni
ngshoul dt hebuyerdefaultin
[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

795

B
C

D
E

G
H

makinginstal
mentpay mentsasagreed.Ondef aultofpaymentbythebuyer
,thesel
lerseized
thevehi
cles.Thebuyerchall
engedtheseizureoft hel
orryonthegroundt
hatithadbecomehi s
absolut
epropert
y.TheDivisi
onalCourtagreedwi thhi
m andgav ej
udgmentforthebuyer.On
appeal,
theWestAf r
icanCourtofAppealwasoft heviewthat
:

".
..t
hepar t
iesmadei tqui
teclear ,i
ntermsofExhi bit"A"
,part
icularlyi
nclause5,thatt he
purchaserwasnott oacquirethepr opert
yint helor
ryunlessandunt i
ltheagreedinstall
mentsof
thepricewerepaidinfull
.Untilthenthepurchaserhadonl yther ighttopossessi
on, userand
controlofthelor
rysolongast heagr eedinstall
ment softhepricewer epunctual
lypai d.I
twas
madequi teclearincl
ause5t hatuponanydef aulti
npay menttheownercoul dseizethelorr
y
anduponnot i
cegivencouldsell orusethelorryashisowni npay mentofthebalancer emaini
ng.
Therewasnot hi
ngwhatevereitherunlawfulorev enunreasonablei nthatcl
earl
yexpr essed
agr
eementbet
weent
hepar
ti
es.
"

Thetestwhetheracontr
actofsal
eofspecif
icgoodsi
sconditi
onalornotiswhetherthe
contracti
smadesubjecttoacondi
ti
onwhichsuspendsthepassingofpropert
y,sothatthe
propertywi
ll
notpasstothebuyerwhenthecontr
acti
smade, butonl
ywhent heconditionis
ful
fi
ll
ed.Thatismadecleari
nsecti
on1(2)and(3)oftheSaleofGoodsAct ,1893asf oll
ows:

"
(2)

Acont
ractofsal
emaybeabsol
uteorcondi
ti
onal

(
3)

Whereunderacont
ractofsaletheproper
tyi
nthegoodsi str
ansferr
edfrom t
hesell
ertothe
buyert
hecontr
acti
scall
edsal e;butwher
ethetr
ansferofthepropert
yinthegoodsistotake
pl
aceatafutur
eti
meorsubj ecttosomecondit
ionthereaf
tertobefulf
il
ledt
hecontracti
scall
ed
anagreementt
osell
."

I
tseemsclearf
rom t
heprov
isi
onsofsect
ion1(
3)t
hatf
or.acont
ractofsal
etobecondi
ti
onal
t
hepart
iesmusthaveagr
eedeither

(
1)

t
hatt
het
ransf
erofpr
oper
tyi
nthegoodsi
stot
akepl
aceataf
utur
eti
me;
or,

(
2)

t
hatt
het
ransf
erofpr
oper
tyi
nthegoodsi
ssubj
ectt
osomecondi
ti
onst
her
eaf
tert
obef
ulf
il
led.

Bysecti
on62(1)oftheActa'
contr
actofsale'i
ncl
udesanagreementt
osellaswel
lasasal
e.
Bet
weent het
wo, t
herei
snointer
mediatecategor
y(seeBenj
amin'
sSaleofGoods[
1974Ed]
par
agraph19)
.
Thatpay mentofpr i
ceisdef erredoragreedt obebyinst alment sdoesnotbyi tsel
fmakea
contractofsaleacondi t
ional sal
e.Inordertodeterminewhet heracont ractofsal eisa
conditionalsal
et hetotal
ityoft heagreementmustbeconsi dered.Wher et hereisexpresst erm
ast othepassingofpr oper tythereisnopr oblem.Ef
fectmustbegi ventosucht erm.Iti
swher e
thereisnosuchexpr esst ermt hatresortmustbehadt oaconst ructionoft heagr eement ,
ifin
wr i
ti
ng, t
odeducet hei
ntent i
onoft hepar t
ies.Usual
ly
,suchcondi ti
onsar e, f
orexampl e,infer
red
from termsenj oi
ningthebuy ertoinsurethegoodsagai nstrisks, orempower i
ngthesellert o
i
nspectt hegoodst oensur eitsgoodcondi ti
on,orasinAdi gunv .Amao( 1979)LRN54r equiri
ng
thegood( alor
ry)tober egisteredinthesel l
er'
sname, t
oment i
onbutaf ew.I nt hecaseof
Sengenav .Poku( supr
a)t herewasnodi ff
icult
y,i
nconstr ui
ngt hecont r
actofsal easa
conditionalsal
e.Thepar tiest hemselves

796

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Ayool
a,J.
S.C.)

B
C

D
E

F
G

descri
bedthetransact
ion,thoughinexactl
y,asanagreementto"pur
chaseunderahiri
ng
purchasesyst
em"andt hesel l
erexpressl
yreservedt
herighttohi
mself"
tosell
orusethelor
ry
ashisowni npaymentof '
thebalancer emaini
ng"int
heev entoft
hebuyer
'sdefaul
t.
Inthepr esentcaseneitherthecourtbelownort hiscourthadt hebenef i
tofthereasoni
ngofthe
tri
aljudget hatledhi
mt oconcludet hatthecontractofsalewasacondi ti
onalsale.Heseemed
tohav ebeenoft hevi
ewt hateverycreditsal
eisacondi ti
onal sale.Thati
serroneous.I
tneeds
tobest atedt hatwherethenatureofat ransact
ionorthei ntenti
onoft heparti
esistobe
deducedf rom constructi
onofanagr eementinwr i
ti
ngorf rom thet er
msofacont r
actt
hetri
al
courtshoul ddemonst r
atefrom whicht ermsandbywhatconst ructi
onsuchintenti
onis
discovered.

Bet hatasitmay ,t
heCourtofAppeal consi
deredt hetermsoft hecontractwher ebythe
defendantshallhaveli
enovertheequipmentunt iltheplai
nti
ffpaidthepur chasepriceinfull
and
thedefendanthadt hefi
ghttorepossesstheequi pment, i
nspecie,i
fthei nstal
l
ment swer enot
paid.Notwithst
andingthoseter
ms, theCourtofAppeal heldthatthedef endanthad" behavedin
awaywhi chestabli
shedbeyondalldoubtthatithadt r
ansfer
redt heti
tl
e"t otheplainti
ff
.

Thesubstanceoft hedefendant 'scounsel '

sar gumentont hisaspectoft heappeal isthat,the
CourtofAppealignoredt heintenti
onoft hepar tiesascouldbei dentif
iedintheagreement .The
termswhichhesubmi tt
eddi sclosedani ntentionoft hepar tiesthatpassingofproper t
y ,i
nt he
goodsisconditi
onal arethosewhi chgav eal ient ot
hedef endantandwhi chreservedther ight
tothedefendantto"takei mmedi atepossessi onoft heequi pmentshoul dtheplai
ntifffailt
opay
anyoftheinstal
lment swithi
nonemont hoft heduedat e".Itwasar guedthat:"
Ther i
ghtt otake
i
mmedi atepossessiondoesnotsuppor tther ightofowner shipcreditedtotherespondentby
theCourtofAppeal .
"and, r
elyi
ngonsect ion19( 1)oftheAct ,t
hatitwasopent othesel lerto
reser
vetohimselfther i
ghtofdi sposaloft hegoodsunt i
laspeci fiedconditi
onisfulfi
ll
ed.Int hi
s
regar
d1quot ethesubmi ssi
onmadei nt hedef endant'
sbr i
eft hus:

"I
tissubmit
tedt
hatt
hespeci
fi
edcondi
ti
onwhichwasnotf
ulf
il
ledbyt
her
espondenti
nthi
s
appeali
sfoundi
nExhibi
t1whi
chstat
esasfol
l
ows:

"
(a)

Weuncondi
ti
onall
yandir
revocablyagr
eethatAfr
otecshal
lhaveal
ienonal
lthemachi
ner
yunt
il
sucht
imeasAfrot
ecrecei
vepay mentoff
ullcont
ractofN709,
200.
00"

(b) Wealsoconf
ir
mthatshoul
dwefai
ltopayanyoft
hei
nst
alment
s
det
ail
edabovewi
thi
nonemonthoft
heduedateAf
rot
ecshallt
ake
i
mmediatepossessionofthosepropert
iesi
nspeci
ethatr
emai
ns unpai
d
f
orwit
hinthesubjectoft
histransact
ionwit
houthi
ndr
ance andwi
thout
r
ecour
se."

Learnedcounself
orthepl ainti
ffarguedforhispartthatt heconductofthedef endantinpar ti
ng
wit
hpossessionoftheequi pmentbef or
efullpaymentwasmadeandev enaf tertheplai
ntiffhad
default
edinpaymentoft hreeinstalmentstogetherwi thchargingofint
erestov erthebalanceof
purchasepri
cewereindicativeofintenti
ontopasspr oper t
y.Furt
hermore,itwasar gued,the
defendantdi
dnotexpresslyr eserveownershipbyincl usi
onofaRomal pacl ause.Final
ly
, i
t

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

797

B
C

D
E

F
G

wasur
gedthat"t
heclausesi
nExhibi
t1relat
ingt
oli
enandpossessi
oncannotcr
eat
eanyt
it
le"
i
nthedef
endantaft
erdeli
ver
y,oft
heequipment.
I
nmyopi ni
on, thequest ionper ti
nenttot hedet erminationoft henat ureoft hetr
ansact i
oni s
whetherthereisanyt er
m oft hecont ractwhi chmakest hecont ractofsal eaconditionalsale.
Thesubmi ssionofl earnedcounsel forthedef endantt hatt heter msoft heagreementgr ant
inga
l
ienandar ightt otakeimmedi atepossessi onoft hegoodst ot hedefendanti ncaseoft he
plai
nti
ff'
sdefaul tarecondi t
ions, i
s,i
nmyopi nion,misconcei ved.Thoset ermsgav ecertain
ri
ghtstothedef endantanddi dnotbyt hemsel v esindi
cat ethatt heplaintif
fshoulddoany t
hing
i
nor dertoacqui reproper t
yint hegoods.Thepr operappr oacht otherelevanceoft hetermsi s
whetherthegr anttot hedef endantofl i
enov ert hegoodandr ighttotakei mmedi atepossession
ofthegoodsi ncaseofdef aultofpay mentr aiseani nferencet hatdelayi npassingofpr operty
unti
lpaymentoff ullpurchasepr icebyt heplaint i
ffwasi ntended.

Thatissuef
all
sint
oproperperspect
ivewhenthegener
alnat
ureofalieni
sappreci
ated.The
di
ssent i
ngj
udgmentofFlet
cherMoultonL.
J.,
inTrust
eeoftheProper
tyofF.Lordv.Great
East
er nRai
l
wayCompany[ 1908]2KB54wher eatpp.63-64explai
nsthenatur
eofal i
enunder
Engl
ishlawthus:

"AlienunderEngl i
shl awi sav er ypeculiarright, butitspr ecisenat urehasbeenconcl usively
settl
edbyal ongl i
neofdeci si ons.I ncontrastt ot heoper ationsofpl edgingorpawni ngt he
creationoft hel iendoesnot ,st r
ictl
yspeaki ng, givet othehol deranypr oper tyint hegoods
subjecttoi t
: perLor dEsheri nYungmannv .Br i
esemann.I tismer elyar i
ghtt or etaint hegoods
untiltheamountoft hel i
enhasbeenpai d.Dur i
ngt heper i
odt hatt hegoodsar esor etainedt he
trueownermaybei nv erycompl etepossessi onoft hegoodsandhav eandexer ciseov ert hem
mostoft heor dinarypower sofanowner ;andi ndeedi nmyopi nioni tiscor r
ectt osayt hatt here
i
snot hi
ngi nEngl i
shlawwhi chpr event
shi spossessi ngandexer cisinganyandev er yrightofan
owneri npossessi onwhi chi snoti nconsistentwi t
ht hemai ntenancebyt hehol deroft hel i
enof
hisrighttor etain.Takef orexampl ethebestknownandmostf ami li
arinst anceofal ien, namel y,
thelienofani nnkeeperov erthegoodsofat ravellerathi sinnf ort heamountofhi schar ges.
Thet ravell
eri sinact ualpossessi onofal lhisgoods.Hewear st hecl othes; her eadst hebooks.
Hecanputt hem i nhisownboxandl ockt hem up, anddur ingt het r
av el
ler'
sst ayint hei nnt he
i
nnkeeperhasnor i
ghtt ogetatt hem nort ot aket hem i ntohi sownper sonal possessi onsoas
todepr i
vet heowneroft hei ruse.Theowneri sev enent itl
edt ocer t
ainlegal right sandr emedi es
i
nr espectoft hosegoodswhi chdependonpossessi on.Forexampl e, i
famani nt henextr oom
wer etodet aint hosegoods, thet ravell
ercoul dbr i
ngdet inuef ort hem.Not hingt hati sdonewi th
thegoodsshor tofr emov i
ngt hem f rom thehot elaffectst heexi stenceoft hel ien.Theowner
mayl ockt hem upi ncupboar dsi nhi sr
ooms, ofwhi chheal onehast hekey ,andi fthei nnkeeper
wer etoal l
ott ot hetravelleral ockei nthecor ridorori nt hesampl e- r
oom oft hehot el forthe
purposeofhol dinghisgoodsi twoul dnot, i
nmyopi nion, prejudi ceoraf fectt hel i
enov ert hem,
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ts

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S.C.)

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event houghthesacredwor d"demi se"wer eusedtodescribethetransacti

on,moreespecial
lyif
that"demise"wasspeci f
icallyforthesol epurposeofholdinggoodswhi chwer etoremain
subjecttotheli
en.But,althought hei nnkeepernotonlymaybutundercer t
ainci
rcumstances
mustt husleavethegoodsi nt heact ualpossessionoftheowner ,
therearelimit
s,whichhemay
notpasswi thoutlosi
nghisl i
en.Hemustnotper mitthetravel
l
ertot akethegoodsoutoft heInn,
or,t
oputi tmor egeneral
ly,hemustnotdoany t
hingthatamountstoanabandonmentoft he
powert oexercisehisri
ghtofr etention."

Then,
atpage71hesai
d:

"AsIhavesaid,
al i
engi
vesnopropert
yint hegoods,nordoesitent
it
lethehol
dertotake
possessi
onofthegoods,fori
timpl
iesthattheyarealr
eady,i
nhispossessi
oninthesenset
hatI
haveexpl
ained,andnoti
ntheuncontr
olledpossessi
onoft heowner.(
Emphasismine)

I
tisper
ti
nentt
oobser
vet
hatt
heHouseofLor
dsal
l
owedt
heappeal
inG.E.Ryv
.Lor
ds[
1909)1
AC109.
I
tiscl
earthatalieni
smerel
yarighttoretai
nthegoodssubj ecttoi
tunt
ilt
heamountofthel
i
en
hasbeenpaid.Theli
endoesnotgiv
et otheholderany
,propertyint
hegoods.Alegal
li
enwas
descr
ibedi
nHal sbur
y'
sLawsofEnglandVol 28(4thEdit
ion)paragr
aph702thus:

"I
nitspri
maryorl
egal sense'l
i
en'
meansar i
ghtatcommonl awinonemant or
etai
nthatwhi
ch
i
sr i
ghtf
ull
yandconti
nuousl yi
nhi
spossessi
onbelongi
ngtoanotherunti
lthepr
esentand
accruedcl
aimsoftheper soni
npossessi
onaresati
sfi
ed.I
nthepri
mar ysensei
tisgiv
enbylaw
andnotbycontr
act."

Apartfr
om li
enwhichthel
awgivesthereisl
i
enbycontract
,whichisr
ightt
odetai
ngoodsas
securi
ty.I
nHalsbur
y'
sLawofEngland( 4t
hEdit
ion)Vol
28paragraph73thenat
ureand
for
mat i
onofsuchli
enisdescr
ibedthus:

"Li
eninit
spr opersenseisarightwhichl
awgives,
butiti
suseful
tospeakofli
enbycontract
,
andnumer ousinstancesofarightt
odetai
ngoodsassecurit
ydependsfort
heiref
fectonthe
val
idi
ty,
scopeandconst r
uct
ionofthegoverni
ngcont
ract.
"

Normallyali
eni
mpli
est
hatpropert
yint
hegoodsi
sinanot
herot
hert
hant
heper
sonhol
dingt
he
l
ien.Secti
on39(
1)pr
ovi
desthat:

"Subj
ecttot heprovi
sionsoft
hisLawandofanywri
tt
enlawinthatbehal
f,not
wit
hstandi
ngt
hat
thepropert
yi nthegoodsmayhav epassedt
othebuyer
,theunpai
dsell
erofgoods,
assuch,has
byimplicat
ionoflaw-

(
a)

al
i
enont
hegoodsf
ort
hepr
icewhi
chhei
sinpossessi
onoft
hem .
..
."
.

Bysecti
on39(2)whenpropert
yingoodshasnotpassedt
ot hebuyertheunpai
dsell
erhasri
ght
towit
hholddel
iver
y.Commentingonsecti
on39(2)i
twasstated,
quiteri
ghtl
y,i
nBenj
amin'sSal
e
ofGoods[1974]Edi
ti
onparagraph15-029that
:
"Al
ien,st
ri
ctosensu,
canar
iseonlywhent
hepr
oper
tyhel
dbel
ongst
oanot
her
;hence,
ther
ight
ofwit
hholdi
ngdeli
ver
yexer
cisedby

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

799

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t
heunpai
dsel
l
erov
ergoodsi
nwhi
chhest
il
lhaspr
oper
ty,
isaquasi
-l
ien.
"

Enough,Ibeli
eve,hasbeensaidt oshowt hattheter
m astoliencontainedintheagreementof
thepart
iesdoesr i
otbyitsel
fraiseanyinf
erenceofani nt
enti
ont odelaythepassingofproper
ty
tothebuyer.I
fany t
hing,
theinferencewhichitrai
sesisthatwhichisconsistentwit
hthenatur
e
ofli
en,andthatis,t
hatpropertyhaspassedt othebuyer.

Byt
heagreementofthepar
tiesthedef
endantwasgivenari
ghtt
o"t
akeimmediatepossessi
on
oft
hoseproper
ti
esinspeci
et hatr
emai
nsunpaidforwit
hint
hesubj
ectoft
hist
ransact
ion
wi
thouthi
ndr
anceandwi t
houtrecourse"shouldtheplai
nti
fff
ail
topayanyoftheagr
eed
i
nstal
mentswi
thinonemonthoft heduedat e.Idonotint
erpr
etthi
sri
ghtassuggest
ingan
i
ntent
iont
odelaypassi
ngofpropertytotheplainti
ff
.

Theenti
reagreementmustber
eadasawhol e.Bytheagr
eementthepl ai
nti
ffboughtt
he
equi
pmentandagreedtopayanaddit
ionalagreedpri
ceofN28,000.00fordeli
ver
yandan
addi
ti
onalcostofN10,
000.
00forcommi ssi
oningofthepl
ant
.Interestwaschargedfordel
ayed
payment.

Wheni ti
sdisputedwhetherproper
tyhaspassedtothebuy erornot
,theappr
oachwhichisin
accordwiththeSaleofGoodsAct ,
1893isascontai
nedi nsecti
ons17and18oft heAct.I
nmy
opini
onthefoll
owingproposit
ionsshoul
dguidethecourtindetermi
ningthet
imewhenpr oper
ty
passeswhent hereisacontr
actforthesal
eofspeci
ficorascertai
nedgoods:

(
i)

Pr
opert
yinthegoodsistr
ansf
err
edt
othebuy
eratsucht
imeast
hepar
ti
est
othecont
ract
i
ntendi
ttobetr
ansfer
red.

(
ii
)

Wher
etheter
msoft hecont
ract
,theconductofthepar
ti
esandt
heci
rcumst
ancesoft
hecase
di
scl
oset
heintent
ionsuchmustbegiveneffectt
o.

(
ii
i)

Wherethetermsofthecontract
,theconductofthepar
tiesandt
hecircumstancesoft
hecase,
donotdiscl
oseadefini
tei
ntenti
onast otheti
meatwhi chthepr
opert
yi nt
hegoodsistopass
tot
hebuy er
,thepr
esumptionscontainedinsect
ion18oftheActshouldapply.

I
nthi
scase,
ther
elev
antpr
ovi
sionofsect
ion18i
sRul
e1,
whi
chpr
ovi
dest
hat
:

"Wherether
eisanunconditi
onal
contractf
orthesal
eofspeci
ficgoodsinadel
iv
erablestat
ethe
proper
tyinthegoodspassestothebuyerwhenthecont
racti
smade, andi
tisi
mmat eri
al
whet
hert
het
imeofpay
mentort
het
imeofdel
i
ver
y,orbot
h,bepost
poned.
"(Emphasi
smi
ne)

Ihaveheldthatthisisnotacondi
ti
onalcontr
actforsal
eoftheequipment.Ialsofi
ndthatther
e
i
snothinginthet ermsofthecont
ract
,theconductofthepart
iesandthecircumstancesofthe
casethatdi
scloseanyi nt
enti
ondi
ffer
entfrom t
hatpresumedbyRul e1ofsect i
on18.

I
tisclearfrom t
hejudgmentofthet
ri
alj
udgethathefoundthatt
hedefendanthadexerci
sedi
ts
"general
rightofl
ieni
nconsonancewit
hthespir
itandint
endmentofexhi
bitV'Thi
swasr ej
ect
ed
bytheCour tofAppeali
najudgmentdel
iv
eredbyMohammedJCA( ashet henwas).Theyhel
d
that:

(
i)

Theequipmentwasnoti
npossessi
onofthe1strespondentassel
l
erbutasbai
l
eeoft
he
pl
aint
if
fwhenheexerci
sedt
herightofr
epossessi
on;

(
ii
)

Theaccept
anceofnegot
iabl
einst
rument
saspay
ment(
bef
oret
he

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H
chequeswer
edi
shonoured)hadconvert
edthecondi
ti
onalsal
eoftheequipmenti
ntoan
absol
utepay
mentandthe1strespondentcoul
dnott
hereaft
erexer
cisei
tsli
en;

(
ii
i)

Foll
owi ngYakassai
v .I
ncarMotorsNi
geriaLtd(supra)
,thatsi
ncethesalewasanoutri
ghtsal
e
andpr oper
tyintheequipmenthadpassedtot heplai
nti
ff,t
hedefendanthadnor
ightof
repossessionevenifhehadagreedtothatcourse.
"

Mr .Agbesanwaf orthedef endantput shi scaseagai nstthesef indingsint hreeway s.First,

that
thev i
ewoft heCour tofAppeal thatthedef endantnotbei nginpossessi onoft heequi pmentas
anunpai dsel lerbutasabai leecoul dnotexer ciset heunpai dsel l
erslienbyv i
rtueofits
possessi onoft heequi pment ,
waser roneousi nviewofsect i
on41( 2)oft heAct .Secondl y,t
hat
i
ft hedefendant" hadr ef
usedt hecont racttotransf ertheplantt oKaduna, therightoflienand
repossessi onpr ovidedinExhi bit1coul dnothav ebeenexer cisable.Itwasbyaccept i
ngt he
offer(i.
et otransfert heequipmentt oKaduna)t heappel l
ant(i.ethedef endant )wasabl et o
exerciseitsrightofl ienandofr epossessi onov erthepl ants,sincet herewasnot imel imitwhen
thoser i
ght scoul dbeexer cised, solongast hepur chasepr icewasst il
loutstanding."Thirdly,
wai v
ernothav i
ngbeenpl eadedcoul dnotber aised.

Freedom ofpar t
iest
odet ermi net heter
msoft heircontractimpli
esthatthepart
iesar
ef r
eeto
agreethatpay mentofthepur chasepr i
cebyanegot iableinstr
umentmaybet akenasan
absolutepaymentorcondi tional payment,condit
ionedont hei
nstr
umentbeinghonouredon
mat uri
ty.Thelawisclearthatpay mentby.negoti
ableinstrumentisprimafaciecondi
ti
onal.I
tis
wher etheintent
ionofthepar tiesisthatsuchpay menti sabsolut
ethatthepri
maf aci
ev i
ewis
excluded.Wher epaymenti sbynegot i
ableinst
rumentt helegalposi
ti
onisclearl
yputin
Benjami n'
sSaleofGoods( opci t
)paragraph695t hus:

"
Thesell
er'
sremedytosuefort
hepri
ceissuspendeddur
ingthecur
rencyoftheinstr
ument.I
f
t
heinst
rumentishonour
edatmatur
it
y,t
heamountexpressedther
einisef
fecti
velypai
d;i
fiti
s
di
shonour
ed,
thesel
l
er'
sremedyr
evi
ves.
"

Thecommonsensev i
ewrecei
vesadditi
onalst
atutory,
supporti
nsecti
on38( 1)(
b)oftheAct
whichprovidesthatthesell
erofgoodsisdeemedt obean" unpai
dsell
er"withi
nt hemeani
ngof
theActwhenabi l
lofexchangeorothernegoti
ableinst
rumenthasbeenr ecei
vedasconditi
onal
payment ,
andt heconditi
ononwhichitwasreceivedhasnotbeenf ul
fi
ll
edbyr easonofthe
dishonouroftheinst
rumentorotherwise.

Acceptanceofanegoti
ablei
nstrument,normallyt
reat
edascondit
ional
paymentofthe
purchasepri
ce,l
eadstowaiverofthesell
er'
slienfort
heperi
odofthecurr
encyoft
he
i
nstrument.Thelawisst
atedinBenjamin's(opcit
)paragr
aph1066asfoll
ows:

"Wher ethebuy eri

sgivencredi
tfortheper iodofabillofexchangeorot hernegoti
able
i
nstrumentgi venbyhi mtothesell
erinpay mentofthepr i
ce,thesell
er'
sl i
eniswaivedforthat
peri
od, si
nceaccept anceofanegotiableinstrumentisnormal l
ytreat
edascondi ti
onalpayment.
Butif,beforethegoodsaredeliver
edt othebuy erthenegot i
ablei
nstrumenti sdi
shonoured,or
thebuy erbecomesi nsol
vent,t
heseller
'slienwill
reviv
e, sothathemayr etai
nthegoodsunt i
lhe
i
spai d."(I
tal
icsismine)

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

801

A
B

C
D

F
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H
TheCour
tofAppealwaswr
onginthevi
ewithel
dthatpaymentbynegoti
abl
einst
rument
sev
en
aft
ert
heinst
rument
sweredi
shonour
eddestr
oyedtheunpai
dsell
er'
sli
en.

However,
wast hepossessi
onoftheequipmentunderacontr
actt
otransf
erthesameto
Kadunaandinstal
li
tattheplai
nti
ff
'ssi
tethere,
possessi
onofan"
unpaidsel
l
er"envi
sagedi
n
sect
ion41(1)oftheAct?Thatsubsect
ionreads:

"Subj
ecttotheprov
isi
onsoft
hisAct,theunpai
dsell
erofgoodswhoi
sinpossessi
onoft
hem is
enti
tl
edtoretai
npossessi
onofthem unti
lpaymentort
enderoft
hepr
icei
nthefoll
owi
ngcases,
namely:

(
a)

Wher
ethegoodshav
ebeensol
dwi
thoutanyst
ipul
ati
onast
ocr
edi
t;

(
b)

Wher
ethegoodshav
ebeensol
doncr
edi
t,butt
het
ermsofcr
edi
thadexpi
red;

(
c)

Wher
ethebuy
erbecomesi
nsol
vent

Bysubsect
ion1ofsect
ion43t
heunpai
dsel
l
erofgoodsl
ooseshi
sli
enorr
ightofr
etent
ion
ther
eon-

(
a)

Whenhedel
i
ver
sthegoodst
oacar
ri
erorot
herbai
l
eeorcust
odi
erf
ort
hepur
poseof
t
ransmi
ssi
ont
othebuy
erwi
thoutr
eser
vingt
her
ightofdi
sposal
oft
hegoods:

(
b)

Whent
hebuy
erorhi
sagentl
awf
ull
yobt
ainspossessi
onoft
hegoods;

(
c)

Bywai
vert
her
eof
.

I
tisclearf
rom theset
wosubsecti
onsthatanunpai
dsell
erwhohasceasedt
obeinpossessi
on
ofthegoodslooseshi
sst
atutor
ylien.I
twasstat
edinBenjami
n'
s(opcit
)par
agr
aph1068that;

"Theunpai
dsel
ler
'sr
ightofliendependsonhisbeingin'possessi
on'
ofthegoodsatthet
imehe
exerci
seshi
sri
ghtofli
en.Thel i
enenti
tl
esthesel
lertoretai
npossessi
on,butnott
oregai
n
possessi
onoft
hegoodsaf terhehasgivenitup.
"(It
ali
csismi ne)

I
nVal pyv.Gibson136E.R737itwashel
d, not
withstandi
ngthatthegoodshadcomei nto
possessionofthebuyer
'sagents,
whosubsequentlydeli
ver
edthem tothesell
erstobe
repacked,t
hattheli
enwaslostbythef
ir
stdeliv
ery,andthatthesell
er'
slat
erpossessi
onfora
l
imitedpurposecouldnotcreat
eanewlienforthepricewit
houtthebuyer'
sagreement.Val
pyv.
Gibsonwasdeci dedbef
oretheActwaspassed.Subsection2ofsection41oftheActprovi
des
that:

"Thesel
l
ermayexer
cisehi
sr i
ghtofli
ennot
withst
andi
ngt
hathei
sinpossessi
onoft
hegoods
asagentorbai
l
eeorcust
odierfort
hebuyer
."

Cit
ingPoult
on&Sonv .Anglo-Amer i
canOilCo.Lt
d( 1911)T.L.R.216itwasstat
edin
Benjamin'
s(opcit)paragraph1070t hatasaresul
toftheAct ,t
hesellermayexerci
sehisl
ien
unti
lthepri
ceisfullypaid,despi
tethefactt
hatheacknowl edgesthatheret
ainspossessi
onof
thegoodssoldint hecapacityofbail
eetothebuyer.
Secti
on41(2)iscapableoftwov iews.Oneisthat"possessi
onofthegoodsasagentorbai l
ee
orcustodi
erforthebuyer"i
ncludesregaini
ngpossessionofthegoodsafterthesel
lerhas
part
edwi t
hitandt hebuyerhadalready,
beeni npossessi
on.Theotheri
st hatt
hesewor dsappl
y
onl
ywhent hesellerhasnotatanyt i
mepar tedwit
hpossessionofthegoodsbuthasmer el
y
al
teredthecapacityi
n

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29December2000

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whichhepossessedthegoods.Thelat
terwil
lincl
udeacaseinwhicht
hebuyerisi
n
constr
ucti
vepossessi
onthr
oughhisbaileeoragentwhohappenstobethesel
leri
ncont
inuous
physi
calpossessi
onofthegoods.Thelatt
ervi
ewi st
obeprefer
red.

Formypart,Idonotr egar
dsecti
on41( 2)asexpandingt heambi tofthestatutor
yli
encreat
ed
bysecti
on39(1).Itismadecleari
nBenjamin's(opcit)paragraph1058, andIagreewit
ht he
vi
ew, t
hatt
heseller'
slienisaqual
if
icat
iononhisdut ytodeliv
erthegoodst othebuyer
.That
dutyi
simposedbysect i
on27oftheActandi sdischargedupondel iv
eryoft hegoodstothe
buyerandceasest obesubjectt
oquali
ficat
ion.
Notwithst andingsection41(2)oftheAct,Iam oftheopini
ont hatt hepr
inci
plei
nValpyv.
Gibson( supr a)sti
ll
appl i
estothi
scase.Whent hedefendantdel iveredt
heequipmenttothe
pl
aintif
fitl ostit
sstatutoryl
ienasanunpai dsel
leroverthegoods.I t
spossessi
onofthegoods
asbai l
eeoft heplai
ntiffwaspossessi
onbyt heplaint
if
fthroughi tasbail
ee.Theposit
ionis
di
fferentf rom thecasei nwhichthesel
lerhadnotatanyi nter
v eningperi
odbeenoutofphy si
cal
possessi on.

Inmyj udgment,thedefendanthavingdeliv
eredtheequi
pmenttotheplai
nti
ffhadl ostt
he
stat
utoryli
enwhichithadpur suantt osect
ion39(1)oft
heAct,not
wit
hstandi
ngt hatit
subsequentl
yregainedpossession, underaseparat
econtr
actasabail
eeoft heplaint
if
ffor
purposeoftransport
ingtheequipmentt oKaduna.

Ev eni fthedef endanthadnotl osti

tsl i
en, ithaswai vedi tbyitsconduct .Thel awi scl eart hat
l
ieni swai ved" Wher ethepar t
ycl ai
mst or etaingoodsongr oundsdi fferentf r
om t hoseonwhi ch
her estshi sclaimf orlien, andmakesnoment i
onofl ien."(SeeHal sbury '
sLawsofEngl and( 4t h
Edi tion)Vol .1-8,paragr aph751) .I
nmyj udgment ,thatthedef endantassumedacont ractual
obl i
gat iont otransfertheequi pmentt oKadunaandi nstalli
tont heplaint i
ffssit
eandpr oceeded
toexecut ethecont r
actanddeni edt hatithadr epossessedt heequi pmentamount edt owai ver.
Thatt hedef endantwasnegot iati
ngf ornewt ermsofl i
eni shar dlyconsi stent,i
nmyv iew, with
thecont i
nuat i
onofanexi sti
ngl i
en.Besi des, thedef endant ,ast heexchangeofl ettersbet ween
thepar t
iesshows, encour agedt hepl ai
nt i
fft opr epar esi t
ef ortheequi pmenti nKaduna, andt o
transpor tthedef endant 'scranet oKont agor apur suantt otheagr eement .Theconductoft he
def endantshowedt hati thadwant edt het ransact iont ocont inueasi fi thadnol i
en.Awai ver
ariseswher eonepar tyleadst heot hertobel ievet hathewi llnoti nsi
stont hepr ecisest ipulation
i
nt hecont racte.g.ast ot hetimeofper for mance, andt heot herpar tyhasact edont hatbel ief
andhast herebypr ej
udi cedhisposi ti
on, thef i
rstpar tycannotaf t
erwar dsinsistont het ermsof
theor iginalcont r
act,e.g.ast ot i
meorot her wise:Bul len&Leaks&Jacob' sPr ecedent sof
Pleadi ngs.

Thefactsf
rom whi
chwai vercouldbeinfer
redwerepleadedandgi veni
nevi
dence.Alt
hough
wai
verwasnotexpresslypleaded,t
herewer esuf
fi
cientf
actspleadedthel
egalconsequences
ofwhichwoul
dbeinferenceofwai veri
fthosefact
swer eestabl
ished.

Regar
dlessofthel
ien,
whi cht
hedefendanthad,bytheagr
eementofthepart
ies,
thedefendant
wasexpressl
yempower edtotakei
mmedi at
epossessionoft
heequipmentincaseofplai
ntif
f'
s
fai
l
uretopayinst
alments.Byi
tslet
terof21stApri
l,
1980thedef
endantclai
medt hati
thad
repossessedtheequi
pment.TheCourtofAppealr
elyi
ngonYakassai
v.IncarMot
orsNiger
iaLtd.
(supra)hel
dthatthedef
endanthadnorightofr
epossessi
onsi
ncethesalewasanoutr
ightsal
e
and

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

803

B
C

D
E

G
H

pr
oper
ty,
hadpassedt
othepl
aint
if
f.

I
nKof
iv.Mensah1WACA76i
twasdeci
dedast
heheadnot
est
atedt
hat
:

"
Whenanout r
ightsaleofgoodst
akesplaceandthepurchasermakesdefaul
tinpayi
ngthe
agreedinstal
l
ments,thesell
erhasnor
ightt
or et
akethegoods,eventhought
hepurchaseri
nhis
contracthasagr
eedtot hatcour
se.
"

Deane,C.
J.(ofGol
dCoast
)deli
veri
ngthej
udgmentoft
heWestAfr
icanCourtofAppeal
r
eli
edont heaut
horit
yofThompsonv.Veal
e(1896)LT130f
ort
hatpr
opositi
on.
Kofiv.Mensah(supr
a)wascitedwit
happr
oval
inYakassaiv.I
ncarMot
ors(
supr
a).Thiscour
tin
thatcaseaft
erquoti
ngthepassagei
nthej
udgmenti
nKof i
v.Mensahinwhi
chthi
sprinci
pleof
thecasewasenunciatedsai
d:

"
Weour
sel
vesagr
eewi
tht
hepr
inci
plesofl
awenunci
atedabov
ebyt
hei
rLor
dshi
ps.
"

Thiscourthasnotbeeni nv i
tedtodepar tfr
om thedeci sioninYakassai'
scase.Al lthathasbeen
att
empt edbycounsel forthedef endantistodisti
nguishi tbecause,ashear gued, the
tr
ansactionsinYakassai andKof iwereconditi
onal sales.InregardtoYakassai '
scasei twas
sai
dt hatthereasonforthedeci sionwast hatthetri
al j
udgeshoul dnothav ef oundt hatthesal
e
wasacondi t
ionalsal
ewhensuchwasnotpl eaded.Inmyopi nion,t
hesedistinctionsdonothold.
BothKof i
'scaseandYakassai scaseshowt hatasal edoesnotbecomecondi t
ional merel
y
becauset hepurchasepricewaspay abl
ebyi nstal
lment s.

Iti
sexpedi
entt
oobserv
ethatt
hepri
ncipl
einKof
i'
scaseadopt
edandappli
edi
nYakassai
'
s
casefi
ndsuppor
tint
hestat
ementofthelawascont
ainedi
nBenj
amin'
s(opci
t)par
agr
aph
1147asfol
lows:

"Wher e,foll
owi ngthecont ractofsal e, thebuy erhasbot hpossessi onof ,andt hepr oper tyin,t
he
goods, anyr etakingoft hegoodsbyt heunpai dsel l
erwi ll(excepti ncasesoff r
audor
misrepr esentation)beaconv ersionagai nstt hebuy er.Inthecases, whichsuppor tt his
proposit i
on,thesel ler
,didnotpur por t, priort ot heret aki
ngt ot ermi natethecont r
actofsal eon
thegroundt hatt hebuy erhadr epudi at edhi sobl i
gat i
onsundert hecont ractorcommi tteda
fundament albreach.Woul di thav emadeanydi fferencei fhehaddoneso' Iti
ssubmi tt
edt hat
alt
houghdi rectaut horit
yisl acking, theassumpt i
onbehi ndt hesecasesi st hat,oncet hesel l
er
haslostbot hhispossessi onandandhi sr ightofst oppagei nt ransi t
u,andhast ransf er redt he
proper t
yint hegoodst ot hebuy er,hehasnor emedyagai nstt hegoodst hemsel ves, andhi s
onlyremedyi scl ai
mf ort hepr iceorf ordamagesundert hecont r
act.Theassumpt i
onbehi nd
thestatut oryrulesont heunpai dsel ler '
sr ightsofl i
enorofst oppagei nt ransituist hati ft he
proper t
yhaspassedt ot hebuy erandt hegoodst hemsel veshav er eachedt heactual
possessi onoft hebuy erorhi sagent ,theunpai dsel lerhasnof urtherremedyagai nstt hegoods;
i
fthesel l
erhadacommonl awpowerofr ev estingt hepr oper tyinhi mselfbyt ermi nat i
ngt he
contractev enwher ethebuy erhadl awf ull
yobt ainedbot ht hepr opertyin, andpossessi onoft he
goods, thest atutoryrestri
ct i
onsont her emedi esofl ienandst oppagecoul dbeeasi lyev aded.
Benjami nconsi deredt hat:whenev ert hepr oper ty
804

Ni
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ianWeekl
yLawRepor
ts

29December2000

(
Ayool
a,J.
S.C.)

B
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haspassedandthegoodshav er
eachedt
heactualpossessi
onofthebuy
er,t
hesel
l
er'
ssol
e
remedyisbyper
sonalact
ion.Hestandsi
ntheposit
ionofanyothercr
edi
tort
owhom t
hebuyer
mayoweadebt ;al
lspeci
alremedi
esinhi
sfavourquasell
eraregone.
"

I
tiswor
thyofnot
ethatt
hel
ear
nedaut
hor
sal
sost
atedatpar
agr
aph1147not
e6t
hat
:

"Anexpresspoweri
nthecont
ractmi
ghtenti
tl
ethesel
lert
oret
akeort
oresel
li
nthese
ci
rcumst
ancesbuttheBi
ll
sofSal
eAct,1878mightt
henapply
."
Theci rcumst ancesr eferr
edtoarethoseinwhi
chthesel lerhadlosthispossessi onandhas
transferredthepr oper t
yinthegoodstothebuyer
.Inpassi ng,i
tiswel ltoobserv
e, fur
ther,t
hat
theabov enot efur t
hersuppor t
stheposit
iont
hatprovisionofexpr esspoweri nthecont r
act
entit
li
ngt hesell
ertor etakethegoodsdoesnotbyitselfraiseaninferencethatthesellerhas
nott r
ansf err
edt hepr opert
yinthegoods.

Onthestrengthoftheprinci
plef
ollowedinYakassai'
scase,theconclusi
onthatthedef endant
wasnotent i
tl
edtoretaketheequipmentseemsj usti
fiedbyauthor
it
y.Howev er
,ifthereisa
depart
urefrom Yakassai'
scaseandIholdthateffectoughttobegiventotheagr eementoft he
part
iesconfer
ringarightonthedefendanttor
etaket heequi
pment ,
itisexpedi
entt oconsider
thel
egalconsequenceoft hedefendantret
aki
ngt heequipmentpursuanttotheagr eement.

Toputthi
saspectofthecaseinproperfocus,i
tisri
ghtt
onotethatwhatischal
lengeddi
rectl
y
i
nt hi
scase,f
rom t
herel
iefsought,
istheri
ghtont hedef
endanttodi
sposeoftheequipment.As
ri
ghtl
ynotedby,t
hetr
ialJudgefrom t
heev i
denceoftheonl
ywi t
nessfort
hedefence:

"Thet
hreeequi
pmentarekeptbyt
hedef
endanti
nit
sexer
ciseofr
ightofli
ensti
pul
atedin
Exhi
bit1andpendi
ngtheti
meswhenthepl
aint
if
fwoul
dpaytheoutstandi
ngbal
ance."

I
ndeedt
heev
idenceoft
hatwi
tnessr
ead:

"
Ist
il
lhavepossessi
onofthi
sthr
eeequi
pment
.Wear
ereadyt
orel
easet
het
hreeequi
pmenti
f
t
hebalanceofN635,
059.
78Kispaidt
ous."

Theposi ti
onthust akenbyt hedef endantappear stomet obeconsi st
entwi t
ht hecl
aimed
contractualr
ightofthedef endantasahol derofacont r
actualli
entoret ai
npossessi onpendi ng
thepay mentofsumsdue.Nor i
ghtofsaleat t
achestosuchl i
en.From theposi tiont
akenbyt he
defendantitwouldhav ebeenspecul ativ
ef ortheCourtofAppeal t
opr oceedt oexplorewhet her
thedefendanthadar ightofr esaleandinwhatci rcumstances.I
ndeed, ont hi
sappeal the
defendantputitscaseont hebasi sthatproper t
yhadnotpassed.Ther ewasnodi st
incti
on
drawn, oratt
empt edtobedr awn, betweenar ighttomereretent
ionoft heequi pmentpendi ng
paymentoft hesumsdueandar ighttosell,
ifany,wher
epr opert
yhadal r
eadypassedt othe
buy
er.

TheCourtofAppeal
grant
edt
hei
njunct
ioncl
aimedandsubj
oinedt
her
etoanor
dernotexpr
essl
y
cl
aimed:

"Thatt
hesaidequi
pmentbedeliver
edtotheplai
nti
ffsubj
ecttotheappel
l
antpay
ingtheenti
re
sum outst
andi
ngasbal
anceoft heequipment
,taki
ngintoaccountN381,
160.
00theappel
lant
hadsofarpaidtot
he1strespondent.
"

Thedefendantmadeanissueofthi
sorderont
hegroundthatt
her
eli
efwasnotcl
aimedandt
he
tr
ial
courthadnooppor
tunityofmaki
nganypronouncementon

[
2000]15NWLR

Af
rot
ecTech.Ser
v.(
Nig.
)Lt
d.v
.MI
A&SonsLt
d

(
Ayool
a,J.
S.C.)

805

A
B

D
E

F
G

H
thereli
ef.I
tisunderstandablethatthetr
ialJudgehavi
ngproceededonthef oot
ingthatt
he
plai
ntif
fhadnor ightt
osuppor ttheenti
reclaim woul
dnotproceedtomakeanyconsequent i
al
order.Ther
ei susuall
yreservedtoanysuper i
orcourtaresi
dualpowert
ogr antany
consequentialor
derwhi chthejusti
ceoft hecasedemands.Inthi
scaselearnedcounself
orthe
defendantont hi
sappeal ,
argued,withcommendabl ecandour,
thus:

"Theorderrecogni
sedtheneedoft herespondenttopaytheunpai
dbalancebef
oredeli
veryt
o
them.Thereisjust
iceintheor
der.Af or
tior
itheAppell
anthasther
ighttokeept
heplantand
onlyt
odel i
veritaf
terbei
ngpaid.Thereisalsojust
iceher
e."

Thereisnodifferencei nthet wor endit

ionoft heorder,t
hesubst anceofwhi chisthatthe
pl
ainti
ffisonlyentit
ledt oregainpossessi onoft heequipmentifhet enderstot hedefendantt he
bal
anceoft hepur chasepr ice.Theconv ersei
st hati
fhedoesnotpayt hepur chasepr i
cehe
wouldnotbeent i
tl
edt oregai npossessi on.Thiswast heunderstandingoftheor derwhi ch
defendant'
scounsel consider edjust.Ialsoaddt hatnotonlyistherejusti
ceint heorder, but
al
so, (
i)i
treasonablyf oll
owsf r
om andr eflect
st heri
ghtclai
medbyt heev i
dencet enderedon
behalfofthedefendantandt her i
ghtoft hedef endanttoret
aintheequi pmentunt il
paymenti s
made; and(i
i)itcir
cumscr ibedt heinjunctiongrantedtoshowt hattheinjuncti
onagai nst
di
sposal wil
lbesubj ecttothepl ainti
ffmaki ngpay menttoregainpossessionoft heequi pment .

Besides,t
heor der,thoughrel
atedineffect
,islessoner
oust hananorderforspeci
fic
perfor
manceoft hecont r
acttoinst
all
theequipmentclaimed.Althoughtheorderenjoi
nedthe
defendanttodelivertheequipmenttotheplainti
ff(
subjectt
opay mentofthebalanceof
purchaseprice)itfell
shortoforder
ingthatthedefendantshoulddeli
veri
tatapar t
icul
arpl
ace
ori
nst al
l
ingit.

Inthesecir
cumstances,
ther
eisr
eal
lynomi scar
ri
ageofj
ust
iceoccasi
onedbyt
heor
derwhi
ch
counselforthedef
endanthi
msel
fconcededwasj ust
.

Ofthesevenissuesformulatedbylear
nedcounsel forthedefendant
,hepr of
ferednoar gument
onthesixt
hissueand, i
ndeed,didnotchal
lengethef i
ndingbytheCour tofAppeal t
hatther
e
wasacont r
acttotransf
er,servi
ceandinst
alltheequipmentandt hatthedefendantwasbound
undert
hatcontracttocarr
youti t
sobli
gati
on.Althought hecourtbel
owhel dthatthetr
ialJudge
wasi nerrortorefusetograntspecif
icper f
ormanceofthatcontract,
itdidnotit
selfordera
specifi
cperformanceoft hatcontr
act.Instead,i
torder
edthatthemat terberemitt
edt othetr
ial
courtfordamagest obeassessed.Althought heappeali
sagainstthewhol edeci
sion,neit
her
wast hereagr oundofappeal r
elat
ingtot hataspectoft
hejudgmentnorwast hereissue
di
rectlyformulatedinrel
ati
onthereto.

TheCour tofAppeal rel

yi
ngonMaidenElect
ronicWor ksLt d.v.AttorneyGeneraloft he
Federat
ion[ 19741]1AllNLR179foundacont r
actfortransferandi nstall
ati
onsepar atefrom
thecontractofsale.Apartyi
senti
tl
edtojoi
nsev eral
causesofact i
oninoneact ion.Itfol
lows
thatt
hecauseofact iononwhicht
hereli
effori
njuncti
oni nthiscasewasf oundedi squi t
e
separat
ef rom thatonwhichthecl
aimfordamageswasf ounded.Thef or
meri sfoundedont he
contr
actofsal ewhilethel
att
erisf
oundedont hecontractoft ransferandinstall
ati
on.

Theconsequenceofthedefendant
'
sf ai
lur
etochall
enge,
onthisappeal
,thef
indingsoft
he
CourtofAppealonthequesti
onofbreachofthesecondcont
racti
sthattheorderremi
tt
ingt
he
caseforassessmentofdamagescannotbesetaside.

806

Ni
ger
ianWeekl
yLawRepor
ts

29December2000

(
Ayool
a,J.
S.C.)

A
B

D
E

F
G

Also,wher
eapartycl
aimsinregar
dtobreachofcontr
actdamagesandspeci
fi
cperf
ormance,
refusal
ofspeci
fi
cper
formanceongroundsofequit
ywill
notaff
ecthi
sri
ghttothel
egalr
emedy
ofdamages.

I
ntheresul
t,eveni
fIhaveall
owedthi
sappealinregardt
ot her
eli
efofinj
unct
ionandspeci
fi
c
per
formance,1wouldhavedismi
ssediti
nregardtotheorderr
emitt
ingthecasetot
heHigh
Courtf
ordamagesforbreachofcont
ractt
obeassessed.

Forthereasons, whichIhav egiv

en,i
tisevidentt
hatIwoulddi
smisst
heappeal .I
ndoi ngso,
regr
ettabl
y ,
myconcl usionisnotinagreementwiththeconcl
usi
onofmyl earnedbrothers.I
n
thi
sinstance, Imustt readthelonel
ypathofonewhodi ssent
s.I
fmymi nori
tyopini
on
encouragesf urt
herdi scussionofaspectsofoursal
eofgoodslawitwouldhav eserv
edsome
usefulpurpose.

Bet
hatasi
tmay
,Iwoul
ddi
smi
sst
heappeal
ini
tsent
ir
etywi
thcost
stot
hepl
aint
if
f.

Appeal
all
owed.