CONTRACT LAW ā Frustration ā Contractual Right of Withholding Distinguished from Frustration
Principle Statement
The defendant's reliance on clause 35(n) was later described as frustration. The loss of trust between the parties drove the defendant to seek refuge under the clause.
Ratio Decidendi (Source)
Per Oguntade, JSC, in Standard (Nig) Engineering Co Ltd & Anor v. Nigerian Bank for Commerce and Industry (2006) NLC-123-252-2001(SC) at p. 33; Paras DāE.
"Given the above averments in the amended Statement of defence, it would appear that it was the defendant's reliance on clause 35(n) of Exhibit 'A' that was later unwarily described by both the trial court and the court below as frustration. My view is that the loss of trust between the parties ā¦ ultimately drove the defendant into seeking refuge under clause 35(n) of Exhibit 'A'."
Explanation / Scope
Contractual withholding rights are distinct from frustration. The principle applies to contract law.
