CONTRACT LAW — Novation — Resiling from Concluded Contract — Effect
Principle Statement
A concluded contract such as in Exhibit 'B', resiling from it, will amount to a Novation.
Ratio Decidendi (Source)
Per Ogbuagu, JSC, in Baliol Nigeria Ltd v. Navcon Nigeria Ltd (2010) NLC-123-57-2003(SC) at p. 6; Paras A–B.
"A concluded contract such as in Exhibit 'B', resiling from it, will amount to a Novation."
Explanation / Scope
This principle establishes that resiling from a concluded contract amounts to novation. Novation is the substitution of a new contract for an existing one. The principle applies where a party seeks to depart from a concluded agreement. It ensures that changes to contracts are properly characterized. The principle reflects the nature of novation. It prevents parties from unilaterally resiling without consequences. The court must determine if the conduct amounts to novation. The principle provides guidance on the effect of resiling from a contract.
