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
Facts of the case
The appellant bank brought an action against the respondent ill the High Court of Western Nigeria for money due under a guarantee for the loan of money. The appellant permitted one of its customers overdraft facilities, later guaranteed by the respondent. The customer later opened a second account, unknown to the respondent, with the appellant. No further cheques were drawn on the first account, although a small amount was paid in.
The account, however, remained overdrawn. All further business was conducted through the second account. The appellant wrote to both customer and respondent demanding collateral security for the overdraft on the first account and a substantial reduction in the amount of the overdraft. When neither of these requests were complied with the appellant instituted proceedings against them in the High Court of Western Nigeria.
Ack: Alan Milner. All Rights Reserved (LawHub NG).
