A-G. BENDEL STATE V. UBA LTD.

• Pages: 954-967

954



NIGERIAN SUPREME COURT CASES

[1986] 2 N.S.C.C.

A-G. BENDEL STATE V. UBA LTD.



5

1.

A-G., BENDEL STATE

2.

BENDEL NEWSPAPERS CORP.



APPELLANTS

3.

ETHIOPE PUBLISHING CORP.



1C

V

UNITED BANK FOR AFRICA LIMITED



RESPONDENT

SUIT NO. SC 66/1985

SUPREME COURT OF NIGERIA

BELLO,



J.S.C.



15

ESO,



J.S.C.

UWAIS,



J.S.C.

COKER,

KARI BI-WHYTE,



J.S.C.

KAWU,



J.S.C.



2C

OPUTA,



J.S.C.

10th July, 1986

Commercial Law - Banking - Documentary credit irrevocable letter of credit-effect

of - Liability - Issuing Bank to corresponding Bank and/or to customer - Duty



25

of corresponding Bank to beneficiary under letter of credit transaction Uniform

Custom and Practice for Documentary Credit (1962) Revision -Applicability.

Contract - Exemption and indemnity clauses - Effect of - Under irrevocable letter

of credit transaction - Breach by corresponding Bank - Whether clause will



3C

protect issuing Bank, when parties are impart delicto - Loss - Where lies -

When the position of the defendant is more favourable.

Evidence - Documentary - Best proof of content.

35

Equity - Estoppel in pais - Waiver - Ratification - When delay amounts to.

ISSUES:

1.

Whether a corresponding bank, under the Commercial Law of Credits, owes



any duty to a seller/beneficiary as regards transactions arising from letters of



4C

credit.

2.

What is the position of the law where both parties in a suit for breach of contract

are

in pari-delicto?

FACTS:



Under a contract of sale, the plaintiffs agreed to buy from one Wilhem Stiber,



45

an Aircraft Fokker F. 27A for the sum of DM 2,250000.00 (Deutche Mark). On the

instructions of the plaintiffs, letter of credit were opened in favour of Stiber by the

defendant bank. Under the letter of credit transaction, the Berliner Handels-Cose

Hechaft Franfuther Bank (B.H.F. Bank) was named as the corresponding Bank.



The stipulations in the letters of credit were,

inter alia:

That "covering despatch la-



5C

test 30 June 1975 of one Aircraft Fokker F.27A, Serial number No. 108 ... from any

German Airport to Benin City Airport, Nigeria." and that "this credit is valid in West

German until 15th July 1975". On the back was an endorsement that "On presen-