SABRU MOTORS NIGERIA LIMITED V. RAJAB ENTERPRISES NIGERIA LIMITED

Issue:

It suffices to state that the appellant was at all material times an accredited distributor of the Anambra State Motor Manufacturing Company Limited. Both the appellant and the respondent had entered into a contract for the sale and delivery of two Mercedes Benz L.911/48C Trucks by the appellant to the respondent. On the appellant's failure to deliver the trucks, the respondent initiated proceedings at the High Court of Justice, Adamawa State against the appellant claiming the refund of the sums paid with additional Four Million Naira or in the alternative an order compelling the defendant to deliver two trucks to the plaintiff. At the conclusion of trial, the learned trial Judge, Oluoti, J. found that the appellant was in breach of this contract when it failed to deliver the two trucks to the respondent. He found it established that the agreed purchase price by the parties in respect of the trucks was N846,259.70 per unit and that the respondent paid N 1.692.519.40 being the cost of the two trucks to the appellant. He declined to make an order of specific performance of the contract of sale but proceeded to award the sum of N1,992,519.40 as damages to the respondent whereof N1,692,519.40 represented the price of the two trucks paid by the respondent to the appellant and N300,000.00 represented general damages for this breach or contract. 5% simple interest was also awarded on the said N l,692,519.40. On appeal before the Court of Appeal, it was contended on behalf of the present respondent, then appellant, that since there was ample evidence that the price of each truck was admitted by the appellant to have risen to N 1,500,000.00 when the vehicle ought to have been delivered, the damages ofN300,000.00 awarded by the trial court in addition to the refund of the money paid by the respondent in respect of the contract price of the two trucks was inadequate and erroneous on point of law. This submission found favour with the Court of Appeal. Hence further appeal to the Supreme Court by the defendant.