- 10 Marks
Question
Jaffer, who trades in the importation of edible consumables from Cotonou, agreed with Fudu to import and deliver to Fudu in Lagos 50 tonnes of foreign parboiled rice in 50kg bags for a total value of N7 million. Fudu paid an advance of N3 million, with the balance payable on delivery. However, Jaffer sent the bags of rice, which were confiscated by the Nigeria Customs Service at the border, as the Federal Government had banned the importation of rice into Nigeria. Fudu is aggrieved for non-delivery of the consignment and intends to sue Jaffer to recover the N3 million deposit he paid.
Required:
Advise Fudu accordingly, stating the legal issues involved.
Answer
The legal issue involved is the illegality as a vitiating factor in a contract. Any contract aimed at carrying out an act prohibited by law, such as the importation of banned goods, is considered null and void. In this case, the contract between Jaffer and Fudu for the importation of banned rice into Nigeria is illegal. As a result, the contract is void ab initio, meaning it has no legal effect from the outset. Consequently, the N3 million deposit paid by Fudu is not recoverable.
Fudu is advised not to sue Jaffer for the recovery of the N3 million deposit, as the suit will likely fail due to the illegal nature of the contract.
Explanation:
Contracts that are illegal or against public policy cannot be enforced in a court of law, and the parties involved in such contracts are not entitled to remedies for non-performance.
- Tags: Consumer Rights, Illegal Contract, Tort Law, Trade Law
- Level: Level 1
- Topic: Law of Contract
- Series: MAY 2023
- Uploader: Theophilus