LEGAL PRINCIPLE: CONTRACT LAW — Implied Term — Concluded Contract Not to Be Terminated Without Just Cause
PRINCIPLE STATEMENT
When there is a concluded binding contract, there is liability if it is terminated without justification. That would amount to a breach. There is an implied term that an enforceable contract will not be brought to an end without just cause.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Savannah Bank of Nigeria Plc v. Opanubi (2004) NLC-1542000(SC) at pp. 8–9; Paras E–A.
"When there is a concluded binding contract, there is liability if it is terminated without justification. That would amount to a breach of the contract. There is, therefore, an implied term that an enforceable contract will not be brought to an end without just cause."
EXPLANATION / SCOPE
A binding contract includes an implied term against termination without just cause. Unjustified termination constitutes breach of contract. The principle applies to contract law. The rule protects contractual stability and prevents arbitrary termination. The implied term exists regardless of express provision. The terminating party must have valid justification or face liability.
