In Nigeria, a concerning trend among law enforcement is the wrongful arrest of individuals for failing to fulfill their obligations in contract, with such actions often misclassified as “Obtaining by False Pretence.” This practice leads to many people being detained over civil matters that should not be criminalized. It is essential to recognize the difference between criminal and civil law, especially in Nigeria, where businesses frequently misinterpret breaches of contract as criminal offenses. This article clarifies the implications of this distinction and provides an overview of crucial concepts in contract law, including potential remedies for breaches.
Understanding Contractual Obligations in Nigeria
A contract is a formal agreement between parties that delineates their respective duties and responsibilities. In Nigeria, contract law is based on a combination of common law, statutory regulations, and customary practices. For a contract to be legally valid, several key elements must be present: offer, acceptance, consideration, the legal capacity of the parties, and a lawful purpose (as established in the case of Okafor v. Attorney General of Anambra State [2009]).
The Nature of Breach of Contract
A breach occurs when one party fails to meet its obligations as specified in the agreement. Under Nigerian law, this can take many forms, including non-performance, delayed performance, or defective performance. This is illustrated in the case of Rivers State Government v. Abba [2001]. Generally, failing to fulfill a contractual obligation is classified as a civil issue.
Key Points to note about Contracts and Liabilities
- Civil vs. Criminal Liability: Breaches of contract are typically civil matters that result in civil liability, except in cases involving fraudulent actions or criminal misconduct, such as forgery (Adebajo v. Alabi [2015]).
- Legal Framework: Nigerian contract law is primarily guided by statutes like the Contract Act of 1872 and various case laws. These laws focus on remedies such as compensation rather than punitive measures. On the other hand, crimes and the elements of such crimes are defined by law, and no one can be charged with a crime that is not explicitly defined in a written law.
Exceptions to the General Rule
While most breaches are civil, certain circumstances may lead to criminal liability:
– Fraud: If a party deceives another to induce them into a contract, criminal charges may apply.
– Negligence: Severe negligence resulting in harm could subject the offending party to both civil and criminal penalties, as seen in Ogunseye v. Agbaje [2019].
Remedies for Breach of Contract
When a breach of contract occurs, the injured party has several remedies available:
- Damages: Monetary compensation for losses incurred due to the breach, established in the case of Nigerian National Petroleum Corporation v. D.E.J. (Nig.) Ltd [2007].
- Specific Performance: Courts may mandate the breaching party to fulfill their contractual obligations as agreed.
- Rescission: This remedy allows the distressed party to terminate the contract and seek restitution for losses.
- Injunctions: Courts can issue orders to prevent a party from continuing to breach the contract.
Conclusion
In Nigeria, failing to comply with a contractual obligation is primarily a civil matter. Although some actions associated with breaches may result in criminal liability, the focus of contract law is compensation rather than punishment. Understanding your rights and obligations regarding contracts, as well as the remedies available, is vital for individuals and businesses alike. Consulting a qualified legal practitioner is essential for appropriate guidance if you encounter contractual disputes. Attempting to resolve these issues through police involvement can expose both the complainant and law enforcement to allegations of unlawful arrest and detention.
References
- Okafor v. Attorney General of Anambra State [2009] 6 NWLR (Pt. 1137) 154.
- Rivers State Government v. Abba [2001] 12 NWLR (Pt. 728) 90.
- Adebajo v. Alabi [2015] 6 NWLR (Pt. 1452) 329.
- Ogunseye v. Agbaje [2019] 3 NWLR (Pt. 1667) 1.
- Nigerian National Petroleum Corporation v. D.E.J. (Nig.) Ltd [2007] 6 NWLR (Pt. 1031) 218 (CA)
- Oluwaseun Adedayo Omotoso is a Legal Practitioner, scholar and social commentator based in Lagos Nigeria.
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