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GUARANTY TRUST BANK PLC v. FOX GLOVE NIGERIA LIMITED

(2016) JELR 37073 (CA)

Court of Appeal  •  CA/L/620/2013  •  24 Mar 2016  •  Nigeria

Coram
UZO I. NDUKWE-ANYANWU JCA; JOSEPH SHAGBAOR IKYEGH JCA; CHINWE EUGENIA IYIZOBA JCA;

Judgement

JOSEPH SHAGBAOR IKYEGH, J.C.A.(Delivering the Leading Judgment): The appeal is from the judgment of the High Court of Justice of Lagos State (the Court below) whereby it awarded N10 million with 21% per cent interest thereon and 4% post judgment interest to the respondent against the appellant for a breach of contract of bank guarantee.

Briefly stated, the respondent was at all material times a distributor with MTN Communications Ltd. He applied for a bank guarantee of N10 million from the appellant to guarantee its trading capacity with MTN. A letter of offer dated 26-02-07 with the terms and conditions of the facility was issued to the respondent by the appellant. The parties agreed in the letter of offer that the appellant reserved the rights to withdraw the guarantee by giving a 60 day period of notice to the respondent and MTN Nigeria Communications Limited (MTN).

Notwithstanding the termination clause, the appellant unilaterally terminated the agreement prematurely upon which the …

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