LIMITATION LAW — Acknowledgment of Debt — What Constitutes — Unconditional and Unequivocal Promise
Ratio Decidendi
Per Chukwuma-Eneh, JSC, in NSIT & Anor v. Klifco Nigeria Limited (2010) NLC-123-288-2005(SC) at pp. 12–13; Paras B–A:
"What constitutes acknowledgment is a matter of fact depending on each case… Acknowledgment of debt owed to a Creditor has to be unconditional and unequivocal. The words used by the debtor to recognize the existence of the instant debt are 'that our computation of our indebtedness differs from yours…' These words… couldn't be more absolute and unconditional as to the acknowledgment of indebtedness… It is not required… that the precise amount i.e. figures of the debt must be stated."
Explanation / Scope
This principle establishes that acknowledgment of debt must be unconditional and unequivocal, but need not state the precise amount. The principle applies where acknowledgment is relied upon to revive a statute-barred debt. It ensures that debtors cannot escape liability on technical grounds. The principle reflects that substance prevails over form. It prevents debtors from denying acknowledgment where the debt’s existence is recognized. The court must determine if the acknowledgment is unconditional. The principle provides guidance on what constitutes valid acknowledgment.