COMMERCIAL LAW: AGENCY; ESTOPPEL; A PERSON WHO HOLDS OUT ANOTHER IS PREVENTED FROM DENYING EXISTENCE OF AN AGENT RELATIONSHIP

ACMEL NIGERIA LIMITED; BODE AYENI v. FIRST BANK OF NIGERIA PLC & 2 ORS.

SUPREME COURT OF NIGERIA

(PETER-ODILI; ARIWOOLA; EKO; GARBA; OGUNWUMIJU, JJ.SC)

Sometime in March 2005, Acmel Nigeria Ltd & Bode Ayeni (Appellants) were informed by Wemi Shada & Associates (2nd Respondent), the agent of First Bank Nigeria Plc. (1st Respondent), that the 1st Respondent intended to sell its property. The asking price was fixed at N20,000.000.00. The Appellant, on the information of the 2nd Respondent, promptly issued a banker's cheque for the sum of N20,000,000.00 in favour of the 1st Respondent. After 10 months it returned the cheque to the Appellants claiming that its management had raised the asking price to N25,000,000.00. The Appellant raised another cheque for the additional N5,000,000.00 in favour of the 1st Respondent. The two cheques totalling N25,000,000.00, were given to the 2nd Respondent, as the agent of the 1st Respondent. Sequel to the payment of the N25,000,000.00 the Appellants were let into the possession of the property by the 2nd Respondent in his capacity as 1st Respondent's agent.