ACCORD AND SATISFACTION IN CONTRACT OR TORT

• Date: 07 September 2019

(1) "The concept of accord and satisfaction, in law, is the purchase of a release from an obligation arising under contract or tort by means of any valuable consideration, earlier agreed to by the parties, not being the actual performance of the obligation itself. As I have said, the accord is the agreement by which the obligation is discharged." - Per Aderemi, J.C.A. in Imoto v. H.F.P. Suit No. CA/L/149/98; (2001) 30 W.R.N. 174 at 182.

(2) "First of all, what is Accord and Satisfaction? In law accord and satisfaction is the purchase of a release from an obligation whether arising under contract or Tort by means of any valuable consideration, not being the actual performance of the obligation itself’. The accord is the agreement by which the obligation is discharged. The satisfaction is the consideration which makes the agreement operative. See the case of Ude v. Osuji (1990) 5 N.W.L.R. (Pt. 151) 488. Exhibit F emanated from the action instituted in the Queens Bench Division, Commercial Court, High Court of Justice England between Punjab National Bank (incorporated in India with limited liability) as plaintiff and (1) Omena Bank (Nigeria) Ltd. (2) Middle East Bank Ltd. (Incorporated in Dubai, United Arab Emirates) as defendants. After entering into the agreement quoted above the plaintiff filed a notice of Discontinuance of the action between the parties. The parties in that action are different from the parties and claims in the action before the Lagos High Court in suit No. LD/2504/93. The claims in the latter case are for a total sum of $2,449,457 against Owena Bank being money had and received by the defendant bank to the use of the plaintiff together with interest on the said sum. Looking at the terms of settlement in Exhibit E the claim which is the subject matter of the Appeal cannot be interpreted as covered by the agreement of accord and satisfaction reached by the parties before the Queens Bench Division, Commercial Court, High Court of Justice England. The appellant has also referred to Exhibits D, D1, E, & E1 as discharge certificates of its indemnity against all monies due to the respondent from the plaintiff. Exhibits D & D1 refer to payments made to Chris Ogunbanjo & Co. by Owena Bank in respect of claims by 3 companies as follows: - Bollington & Sons Ltd. N794,400, Jalexa Enterprises Ltd. N218,200, Pakav & Sons Ltd. N237,400. Upon a careful perusal of Exhibit E the Deed of Indemnity dated 26th August 1991 between Chris...