Commercial Contracts Under Nigerian Legislation

COMMERCIAL CONTRACTS UNDER Nigerian LEGISLATION Introduction A strike is an agreement which is legally book binding on the parties to it and which if broken may be enforced by performance in court against the party that has broken it. A accept may be deprave or voidable. A void geld is that which lacks the congenital ingredients or elements of valid contract and in that respectfore of no legal effect. A voidable contract is that which is valid in the first place except may be ended at the instance of peerless of the parties to it.Such contracts admit guarantee with a bank of money lender, hire buy and sale or leasing of sphere. The legal consequences of non-compliance atomic number 18 that they are non enforceable at law though they are non necessarily void. However, close to categories of contracts moldiness of necessity be in writing or else they shall be void absolutely. These include transfer of shares, marine insurance and hire purchase agreements. As a gener al rule withal, all contracts are in the reputation of agreement however, not all agreements may constitute a contract properly so called.For instance, an agreement for the sale of a parcel of land is intended to be binding and enforceable at law, whereas, an invitation to a tiffin which after all, did not hold may not be enforceable at the suit of the dis plant party. A contract may also be under-seal or by deed and may be simple or oral. It may be enunciate when it is written or implied when it is inferred from the act up and acts of the parties. In addition, there can be bilateral contract mingled with two parties or multi-lateral contract among parties depending on the nature of obligations to be performed under the agreement.Condition and warrant are the two basic types of express destinations in a contract. Whether a term is a condition or warranty depends on the intention of the parties. A condition is a vital term which goes to the root of the contract. Breach of a condition entitles the innocent party to repudiate the contract and to claim damages. A warranty is a term which is supplementary to the main purpose of the contract, breach of which only entitles the innocent party to damages. organic law OF A VALID CONTRACT The main requirements of a valid contract are as follows 1. there mustiness be an offer . there must be an acceptance 3. there must be context 4. parties must have extensive contractual capacity 5. there must be an intention to nominate legal relations 6. object of the contract must not be unlawful nor illegal 7. prescribed formalities must be followed, for character, it should be in writing or by deed. Forms of Contract Contract supported by consideration are basically expected to be in writing,. It is however important to note that a contract may also be oral or implied and to experience be binding on the parties depending on the peculiar circumstances.The fact rest that a contract may not be taken as being inva lid or unenforceable for the mere fact that it is not in a written form. Te court would normally not assist any soul who was lured into an oral agreement. Writing merely facilitates the interpreting or proving of the terms of the contract barring which it may not be all that necessary. In considering commercial contracts under Nigerian legislation however, we would value three of such contracts which are ? hire purchase ?sale of goods ? function. situation CONTRACT IntroductionAgency is a relationship that exists among two mortals, one of whom expressly or impliedly agrees that the other should represent him or act on his behalf. The one that is represented is called the wind while the person representing or acting on somebodys behalf is called means. Agency relationship involves the consent of the agent and the principal that one should act for the other. It thus arises from a contract or agreements express or implied. Ofodile v. Chinwuba Generally, the relationship of princ ipal and agent may arise in three main ship canal 1.By agreement , whether contractual or not express or implied in nature 2. By subsequent check by the principal of the agents act done on his behalf, and 3. By operation of law under the doctrine of necessity Whether or not an spot relationship exists would largely depend on the certain nature of the agreement and the circumstances of the relationship between the principal and the agent. In another vein, the law of agency consists of the law of the employer and the employed, where the employment consists of bringing the employer into contractual relationship with the third party.This relationship is simply referred to as The Master and handmaid relationship under the labour law and for which there is a secondary liability. An agent should be distinguished for an independent contractor. An independent contractor is the person who negotiates with the third party on his own behalf. An independent contactor is a person liable to giv e contract for service while and agent or servant renders contract of service. An independent contractor is personally liable at law for his actions. An agent is not a trustee of the goods in his manage not being the legal owner.The extent or scope of the promoters discretion is determined by his principals instructions. intelligent title always remains in the principal. An agent can thereof not give good title all by himself. sorting OF AGENCY a. Special Agent This is someone who has billet to do some particular act on behalf of his principal though not a continuous basis for instance, a special order to purchase a house or a vehicle. b. General Agent this is someone who has creator to act for his principal in all matters involving business or trade, for example a solicitor or legal practitioner. . A Factor Agent He is an agent who sells or disposes of goods that are entrusted to him. His activities are governed by the Factors mold 1889 (UK d. Broker Agent He negotiates ad makes contract for the sale and purchase of goods. However unlike a factor he is not left(p) in possession of the goods. Typical example is insurance Brokers and Stock Brokers. e. global Agent This is someone who represents various principals in many aspects of trade. He is appointed by a Deed under Power of Attorney and has broad magnates. f.Mercantile Agent He represents someone in commercial and certain aspects of trade. Their duties are more or less similar to those of the factor agent g. auction off He represents a principal in the disposal of real properties. They are usually licensed to sell properties of Mortgagors who have defaulted in wagesment. Auctioneer acts between the Vendor and the purchaser. He receives commission and invariably sells to the highest bidder. h. Estate Agent These worry in the acquisition of, valuation of an disposal of properties i.Del-Credere Agent This is a moneymaking(a) agent who, in consideration of extra pay, that is del-credere commissi on guarantees to his principal that the third party with whom he enters into contract on behalf of the principal shall duly pay the sum becoming due(p) under the contract. In effect a del credere agent is a surety of the person with whom he deals. This is just a form of guarantee which may not necessarily be in writing in order to be enforceable at law. asylum OF AGENCY It may be created in two broad ways namely (a)Expressly and (b) impliedly a. Express earthly concern . By deed this involves issuing an authority in writing with the necessary instruction and attestation clauses. That is signed, sealed and delivered. This move is known as the granting a Power of Attorney. 2. Oral instruction This is agency by appointment, it deals with express authorisation of the principal to the agent to act for him b. Implied Creation 1. Agency of necessity This is created by act of person who normally had no authority but was compelled to reasonable act to protect the interest of the tert iary party especially during an emergency situation. 2.Agency by Estoppel This is a type of agency that can be inferred form the conduct of the parties. If the situation that exists suggests that parties want to create an agency relationship, either of the parties is stopped form denying the existence of such a relationship. 3. Apparent Agency This occurs where a principal has not taken due precaution to prevent a situation where somebody portrays himself as having power to act as his agent. 4. Agency by confirmation This occurs where the principal having full knowledge of the fact, accepts the benefits of the contract entered into by his apparent agent.Any act whether lawful or unlawful may be ratified provided it is not void. If it is voidable it is quiesce capable of being ratified as long as it is valid. In Brook v. Nook where an agent forged his principals jot on a promissory note it was held that the attempt at ratification was void. The principal must have capacity as a t the date of the contract. In Kelner v. Baxter where a promoter tried to ratify some pre-incorporation contracts it was held that he could not succeed as the contracts predated the company.