LEGAL PRINCIPLE: CIVIL PROCEDURE — Jurisdiction — Territorial Jurisdiction — Contract — Determination of Place of Performance
PRINCIPLE STATEMENT
Where a contract is to be performed outside Nigeria, the Nigerian court lacks territorial jurisdiction over a claim arising from that contract, unless the contract was subsequently varied by an oral agreement that was pleaded and proved.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC, in Arjay Ltd & Ors v. Airline Management Support Ltd (2003) NLC-1122000(SC) at pp. 42–43; Paras D–A.
"The lease contract was to be performed not in Kano, Nigeria but in Malabo, Equatorial Guinea. That is what is contained in the lease agreement upon which the plaintiff sued. He did not sue on a written agreement that was subsequently amended by an oral agreement."
EXPLANATION / SCOPE
Territorial jurisdiction is determined by place of performance. The principle applies to contract claims. A court cannot assume jurisdiction where the contract is to be performed abroad. The rule protects defendants from being sued in inconvenient fora. The principle is well-established.