CONTRACT LAW — Formation of Contract — Certainty of Terms — Requirement for Enforceability
Ratio Decidendi
Per Adekeye, JSC, in Bilante Int'l Ltd v. NDIC (2011) NLC-123-177-1996(SC) at pp. 10—11; Paras E—A:
"In order to create a binding contract, the parties must express their agreement in a form which is sufficiently certain for the courts to enforce. … If the terms and conditions of the agreement are uncertain or vague as to defy ascertainment with reasonable degree of certainty, there can never be a valid agreement known to law which can be said to offer itself for enforceability."
Explanation / Scope
This principle establishes that a binding contract requires terms that are sufficiently certain for enforcement; vague or uncertain terms cannot create a valid agreement. The principle applies in contract formation. It ensures that contracts are certain. The principle reflects the requirement for certainty. It prevents enforcement of uncertain agreements. The court must require certainty. The principle provides guidance on formation of contract.