19 November

Sticky

Privity of Contract in Nigerian Law: Meaning, Exceptions, and Examples

in Case Analysis, Civil Cases, Exam Preparation, Law of Contract, Legal Terminology, Study Resources, Study Tips

What is Privity of Contract? Privity of contract is a fundamental common law principle establishing that only parties directly involved in a contract possess rights and obligations under that agreement. The doctrine ensures contractual relationships remain exclusive to signatories, preventing third parties from enforcing or being bound by contractual terms. The Nigerian Supreme Court affirmed this principle in Chuba Ikpeazu v. African Continental Bank (1965) NMLR 374, stating that generally, a contract cannot be enforced by a person who is not party to it, even if made for their benefit. Core Principles of Privity The doctrine operates on three essential foundations: 1. Binding Obligations: Only...

27 October

0 Comments

Sticky

Illegality and Public Policy in Contract Law

Posted by Kolawole Adebowale

in 200 Level, Law of Contract, Legal News

Not all agreements, even if validly formed, will be enforced by the courts. The law recognises certain categories of contracts that, despite satisfying the basic requirements of offer, acceptance, consideration, and intention to create legal relations, are nonetheless unenforceable because they are either illegal or contrary to public policy. This principle reflects the fundamental truth that contract law exists not merely to facilitate private arrangements, but to serve the broader interests of society. As the Supreme Court of Nigeria declared in Nnadozie v Mbagwu,1 "a contract is illegal if the consideration or the promise involves doing something illegal or contrary to...

27 October

0 Comments

Sticky

Mistake in Contract Law: A Comprehensive Guide for Nigerian Law Students

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract

Mistake is one of the most intricate vitiating factors in contract law, raising fundamental questions about when parties should be bound by their apparent agreements. If one or both parties enter into a contract under some misunderstanding or misapprehension about a fundamental fact, in what circumstances will the law permit them to escape from their obligations? This question lies at the heart of the doctrine of mistake. The importance of mistake in Nigerian contract law cannot be overstated. In our commercial environment, parties frequently make assumptions about the subject matter of their contracts, the identity of those with whom they are...

26 October

0 Comments

Sticky

Capacity to Contract: Understanding Legal Competence in Nigerian Contract Law

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract

The freedom to contract is a fundamental principle of commercial law. However, not everyone possesses the legal capacity to enter into binding contracts. The law recognizes that certain categories of persons—by reason of age, mental condition, intoxication, illiteracy, or legal status—require protection from their own contractual undertakings or from exploitation by others. Consider these scenarios: A 15-year-old purchases a luxury car on credit. An illiterate farmer thumbprints a complex loan agreement he cannot read. A severely intoxicated person signs away property rights. A company director purports to bind the corporation to a contract outside its constitutional objects. Which of these contracts...

26 October

0 Comments

Sticky

Contents of Contract: Terms, Representations, and Exclusion Clauses in Nigerian Law

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract

Once a valid contract has been formed through offer, acceptance, consideration, and intention to create legal relations, the next critical question becomes: what exactly did the parties agree to? The contents of a contract determine the rights and obligations of the parties, the scope of their commitments, and the remedies available for breach. Understanding contract contents is essential for second-year law students because disputes rarely arise from whether a contract exists, but rather from what the contract actually requires. Consider this scenario: A buyer purchases a car from a dealer. The dealer states that "this car is in excellent condition" and...

26 October

0 Comments

Sticky

Privity of Contract: Understanding the Doctrine and Its Exceptions in Nigerian Law

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract, Legal News

The doctrine of privity of contract stands as one of the fundamental principles governing contractual relationships in common law jurisdictions, including Nigeria. This doctrine establishes a clear boundary: only parties to a contract can enforce rights or be bound by obligations arising from that contract. For second-year law students, understanding this principle—and more importantly, its exceptions—is essential to grasping the practical realities of modern contract law. Consider a common scenario: A father enters into a contract with a builder to construct a house for his daughter as a wedding gift. The builder fails to complete the work. Can the daughter sue...

26 October

0 Comments

Sticky

Formation of Contract: The Essential Elements of Contractual Validity

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract

The formation of a valid contract is a foundational concept in contract law that determines when parties become legally bound to their agreements. While the nature of contract provides the theoretical framework, the rules governing contract formation address the practical question: at what precise moment does a legally enforceable agreement come into existence? Understanding contract formation is crucial for law students and practitioners alike, as it determines the point at which parties acquire rights and assume obligations. A misstep in any element of formation can render an otherwise valuable agreement unenforceable, potentially causing significant commercial disruption and financial loss. This guide examines...

26 October

0 Comments

Sticky

Nature of Contract: Understanding the Foundation of Contractual Obligations

Posted by Kolawole Adebowale

in 200 Level, Class Notes, Law of Contract

Contract law forms the backbone of commercial relationships and everyday transactions in modern society. From buying groceries at the market to executing complex business agreements, contractual principles govern our daily interactions. For law students in Nigeria and beyond, understanding the nature of contract is essential to grasping how legal obligations are created, enforced, and remedied when breached. This comprehensive guide explores the fundamental nature of contract law, examining its sources, the concept of bargain that underpins contractual relationships, and the various classifications that help us understand different types of contractual arrangements. What is a Contract? A contract may be defined as an agreement...