Modification-contract of guarantee-action against surety (Holding)

Modification-contract of guarantee-action against surety – Court Holding Where, in a contract of guarantee, there is a further agreement between the principals relating to the contract of guarantee and the surety is not consulted, a court will not, in an action against the surety, inquire into the effect of the alteration if there is some […]

Method of expression of Consideration in Contract (Holding)

Method of expression of Consideration in Contract The way in which consideration for a contractual obligation is expressed is not conclusive, but it is relevant in construing the terms of the contract itself NATIONAL BANK OF NIGERIA LIMITED v. AWOLESI (1964) NCLR (page 26, lines 20-23) P.C. (West) Related aspect of Law: Consideration in Contract […]

Banking – Guarantee – Effect of substantial modification

Banking – Guarantee – Effect of substantial modification If, in a contract guaranteeing an overdraft with a bank, the principal debtor opens a second account without the guarantor’s knowledge and, on construction of the contract, this amounts to a substantial variation of that contract prejudicial to the guarantor, the effect is to discharge the guarantee […]

Banking – Guarantee (second account and modification of contract)

Banking Guarantee (second account and modification of contract) – Court Holding If, in a contract guaranteeing an overdraft with a bank, the principal debtor is permitted to open a second account, this will not necessarily amount to a substantial variation of the contract prejudicial to the guarantor if the contract is a continuing guarantee of […]