Ratio Decidendi

Per Galadima, JSC, in Alade v. Alic (Nigeria) Limited (2010) NLC-123-169-2001(SC) at p. 8; Paras D–E:

"The law is that a person who is not a party to a contract cannot be held liable. … With respect to the 2nd Respondent however, he can equally be held liable in damages for instigating the 1st Respondent's breach of Exhibit 5."

Explanation / Scope

This principle establishes that while a non-contracting party cannot be held liable on a contract, they can be held liable in damages for instigating a breach of contract. The principle applies where a third party induces a breach. It ensures that those who cause breaches are held accountable. The principle reflects the tort of inducing breach of contract. It prevents parties from escaping liability by remaining outside the contract. The court must determine if the party instigated the breach. The principle provides guidance on the liability of third parties for breaches of contract.

Cases Applying This Principle