Summary of Anon Lodge v. Mercantile Bank Case

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Anon Lodge v. Mercantile Bank

The place of where a contract was concluded was the main issue. Here, the appellant applied for a loan from the Port Harcourt branch of the respondent bank. The application was approved by the respondent which then required the appellant to sign a document which inter alia contained an undertaking that all proceeds of the hotel business for which the loan was taken will be paid into the appellant’s account in the respondent’s bank at Port Harcourt. When the appellant defaulted in repaying the loan, the respondent brought an action to recover the debt in Calabar, where the headquarters was located. The appellant challenged the jurisdiction of the Calabar High Court because the loan contract was made in Port Harcourt and the appellant also resided in Port Harcourt. By the High Court Law of Cross River State (Calabar), a court‘s jurisdiction in contractual cases is dependent on

  • Where the contract was made
  • Where a breach of contract occurred
  • Where the contract is to be performed
  • Where the defendant (appellant here) resides

The Court of Appeal held that these criteria were satisfied by Port Harcourt and not Calabar therefore it was the high court of Port Harcourt which had jurisdiction over the matter in question. The contract here was concluded in Port Harcourt, was to be performed in PH, and the appellant resided in PH.

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