LEGAL PRINCIPLE: CIVIL PROCEDURE — Illegality — Defence — Stranger to Illegal Transaction Cannot Raise Defence
PRINCIPLE STATEMENT
A stranger to an alleged illegal transaction will not normally be allowed to raise a defence of illegality founded on a transaction to which he is not a party.
RATIO DECIDENDI (SOURCE)
Per Ayoola, JSC, in Onwuchekwa v. Nigeria Deposit Insurance Corporation (2002) NLC-982000(SC) at p. 9; Paras A–B.
"A stranger to an alleged illegal transaction will not normally be allowed to raise a defence of illegality founded on a transaction to which he is not a party."
EXPLANATION / SCOPE
The defence of illegality is personal to the parties to the illegal transaction. A stranger cannot invoke it. The principle prevents third parties from benefiting from illegality to which they were not party. The defence is not available to those who were not involved. The rule applies in both contract and property cases. The stranger must have been a party to the illegal agreement to raise the defence. The court will not allow a non-party to impugn a transaction on grounds of illegality. The principle ensures that only affected parties can challenge transactions. The rule is based on public policy. The stranger must show some interest or involvement.
