Adetoun Oladeji v Nigeria breweries Plc, (2007) 5 NWLR 415 at 439
The appellant was a distributor of the respondents’ products for many years and the parties agreed that without prejudice to accrued rights and liabilities of the parties, either party to the agreement could terminate the contract by giving the other side one month’s notice. The appellant then discovered that some payments made to the respondent were not reflected in the account but the respondents immediately stopped further supplies during the course of police investigation. Even after that, no supplies continued and there was no formal termination of the contract.
Held: The appellant’s suit for breach of contract was upheld by the high court. Damages were reduced at the court of appeal and the Supreme Court unanimously allowed the appeal in part. Niki Tobi JSC stated that the council’s decision to rely on the rule in Hadley v Baxendale was not because it was a pre 1900 statute but because the court chose to do so
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