Cookie Policy
OGWUEGBU, JSC (Delivering the Leading Judgment): The plaintiff entered into a contract for the supply to the 1st defendant, 5,000 metric tons or 100,000 bags of American long grain par-boiled rice at ₦28.25 per bag. The 2nd defendant gave an undertaking to the plaintiff that the cargo of rice would be paid for by it as the cargo of rice is received. The 1st defendant is the agent of the 2nd defendant.
It was the contention of the plaintiff that it was a term of the contract that fluctuations in the exchange rate between the naira and the dollar would be borne by the 1st defendant. The exchange rate of the dollar appreciated at the time of the delivery of the rice to the defendants. The plaintiff debited the defendant in the sum of ₦155,681.47. The plaintiff in paragraph 19 of its statements of claim averred as follows:-
1. Wherefore the plaintiff claims from the 1st defendant's (sic) jointly severally the sum of ₦455, being outstanding balance for the price of 5,000 tones of U.S. No.2…