LEGAL PRINCIPLE: EQUITY AND TRUSTS — Merger — Mortgages — Intention Required for Merger
PRINCIPLE STATEMENT
For a merger to be created in such transactions, intention must be evinced in the documents executed by the parties, or such evidence as would indicate that the parties envisaged a merger of the mortgages with one another.
RATIO DECIDENDI (SOURCE)
Per Ejiwunmi, JSC, in Owoniboys Tech. Services Ltd v. Union Bank of Nig. Ltd (2003) NLC-1681999(SC) at p. 17; Paras A–C.
"For a merger to be created in such transactions, such an intention must be evinced in the documents from the documents executed by the parties, or such evidence as would indicate the intention of the parties that they envisaged a merger of the mortgages with one another."
EXPLANATION / SCOPE
Merger of mortgages requires intention. The principle applies to equity and trusts. The intention must be shown in documents or evidence. The rule protects the parties’ rights. The court will not presume merger. The principle is well-established.