Every contract is an agreement; but not every agreement is a contract… Even an agreement which is intended to affect the legal relations of parties does not necessarily amount to a contract in the strict sense of the term. For instance, a conveyance of land or gift of a chattel, though involving an agreement, is not a contract because its primary legal operation is to transfer property, and not to create an obligation.
The meeting of the minds of the contracting parties is the most crucial and overriding factor or determinant in the law of contract. In Best Ltd V. Bh Ltd. 5 NWLR Pt.1329 P.95 @ 127, the Nigerian Supreme Court defined a contractual relationship to mean a legally binding agreement between two or more persons by which rights are acquired by one party in return for acts on the part of the other. It is a bilateral affair which requires the ‘ad idem’ of the parties.
Another form or feature of agreement is “A Covenant”. A covenant is an agreement creating an obligation contained in a deed or legal documents. It may be positive, stipulating the performance of some act or the payment of money, or negative or restrictive, forbidding the commission of some act. Covenants may be used to serve the purpose of a bond.
The non-existence of the condition will be an obstacle to the enforcement of the agreement and will prevent anyone from getting any benefit from the agreement. Condition precedent has been defined as one which delays the vesting of a right until the happening of an event. See Nigercare Development Co., Ltd V. Adamawa State Water Board & Ors 2-3 S.C 202.
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: GuardianNigeria - 🏆 1. / 94 Read more »