breach of contract

Q1061. What are the options available to an to an innocent third party in a breach of contract

Consequent upon the breach of the contract, an innocent third party ordinarily be bound to treat the contract as discharged. He may elect to treat the contract as continuing contract. He may also elect to consent that the other party has discharged the liability. He may exercise the option to do as it pleases him, and he may still sue the other part for loss. B.A.L. Co. Ltd V. Landmark University (2020) 15 NWLR (Pt. 1748) 465 C.A; Udom V. E. Michelette & Sons Ltd. (1997) 8 NWLR (Pt. 516) 187 (pp. 498-499, paras. H-B)

Q1062. What does breach of contract give rise to

Every breach of contract gives rise to a claim for damages, and may give rise to other remedies. Even if the injured party sustains no pecuniary loss or is unable to show such loss with sufficient certainty, he has, at least a claim for nominal damages. B.A.L. Co. Ltd v. Landmark University (2020) 15 NWLR (Pt. 1748) 465 C.A

Q1063. what is the purpose of damages for breach of contract

Damages for breach of contract remedy the loss arising from the breach, which loss must be within the reasonable contemplation of the parties to the contract at the time the contract was made or which naturally flows directly from the breach. U.B.A. Plc. V. Vertex Agro. Ltd. (2020) 17 NWLR (Pt.1754) 467 CA; Universal Vulcanizing (Nig.) Ltd. v. Ijesha United Trading & Transport (1992) 9 NWLR (Pt. 266) 388 ;Union Beverages Ltd. v. Owolabi (1988) 1 NWLR (Pt. 68) 128.

Q1064. What does breach of contract entail

Breach of contract is the violation of a contractual obligation, either by failing to perform one’s own promise or by wantonly interfering with another party’s performance of the contract. A breach of contract may be occasioned by non-performance or by repudiation or both. See B.A.L. Co. Ltd V. Landmark University (2020) 15 NWLR (Pt. 1748) 465 C.A

Q1065. Can a claim for breach of contract be maintained under the fundamental rights (enforcement procedure) rules of 2009

A claim for breach of contract cannot be instituted under the Fundamental Rights (Enforcement Procedure) Rules, 2009. IBE V. AJISE (2020010 NWLR (Pt. 1731) 1 CA

Q1066. Under what instance is the categorization of general and special damages is not necessary in breach of contract

In an action for damages for breach of contract, the damages are usually what the innocent party ought to receive in respect of the breach such as may fairly and reasonably be supposed to have been in contemplation of both parties. As a result, the categorization of damages into general and special compartments hardly apply. JOS MET. DEV. BOARD V. MOULDS (NIG.) LTD. (2020) 5 NWLR (Pt. 1717) 243 CA

Q1067. In what instance will be glaring that a fundamental breach of contract has occurred

A fundamental breach of contract denotes a performance completely different from that which the contract contemplated or a breach of contract more serious than one which would entitle the other party merely to damages and which at least would entitle him to refuse further performance of the contract. Thus, a fundamental breach is a violation of a material term of contract which goes to the root of the contract and gives the innocent party the right to treat the contract as extinguished or at an end. DHL INT’L NIG. LTD. v. EZE-UZOAMAKA (2020) 16 NWLR (Pt. 1751) 445 CA; NIDOCCO LTD. v. GBAJABIAMILA (2013) 15 NWLR (Pt. 1374) 350 p. 486, paras. E-G; MNL v. PEGOFOR IND. LTD. (2005) 15 NWLR (Pt. 947) 1

Q1068. What is the fact that a plaintiff/claimant bringing a claim for breach of contract must plead

It is pertinent that in a claim for breach of contract, the claimant must plead facts showing the existence and subsistence of a valid contract as well as its express or implied terms. It is also important to show which of its terms was breached and in what manner the breach occurred. PRICE WATER HOUSE v. MOMOH (2020) 18 NWLR (Pt. 1755) 32 CA

Q1069. On which party does the burden of proof rest in a case of breach of contract

The onus of proof in a breach of contract suit rest upon the party who asserts breach of contract before the burden will shift to the other party. PRICE WATER HOUSE v. MOMOH (2020) 18 NWLR (Pt. 1755) 32 CA; BIKEY ENG. LTD. v. GOV. ONDO STATE (2013) LPELR-20890.

Q1070. When can it be said that a breach of contract has occurred

a breach of contract occurs when a party to the contract, without any lawful justification or excuse, fails, neglects or refuses to perform his obligations under the contract or incapacitates himself from performing same or in a way backs down from carrying out a particular term. DHL INT’L NIG. LTD. v. EZE-UZOAMAKA (2020) 16 NWLR (Pt. 1751) 445 CA

Q1071. Can breach of contract constitute an offence

Where there is a valid agreement between two persons and there is breach thereof, which has no element of criminality, no criminal charge and subsequent conviction can arise therefrom. At best, it can be a breach of contractual relationship, which the criminal law lacks capacity or competence to enforce or punish. KURE v. C.O.P (2020) 9 NWLR (Pt. 1729) 296 SC; ONAGORUWA v. STATE (1993) 7 NWLR (Pt. 303) 49