CONTRACT LAW — Sanctity of Contract — Parties Bound by Terms — Unwarranted Interference
Ratio Decidendi
Per Tabai, JSC, in A.G. Ferrero & Co. Ltd v. Henkel Chemicals Nig. Ltd (2011) NLC-123-160-2003(SC) at p. 9; Paras D–E:
"The parties are bound by the clear provisions of the contract and the court is bound to give effect to same. ... awarding interest, as the trial court did, was an unwarranted interference with the sanctity of the contract and cannot therefore be allowed."
Explanation / Scope
This principle establishes that parties are bound by the clear provisions of their contract, and the court must give effect to them. Awarding relief not provided for in the contract, such as interest, amounts to unwarranted interference with the sanctity of contract. The principle applies in contract disputes. It ensures that contracts are enforced as written. The principle reflects the doctrine of sanctity of contract. It prevents courts from altering agreed terms. The court must enforce the contract as agreed. The principle provides guidance on the sanctity of contract.