Commitment Towards Young Lawyers and Law Student Advancement

Tuesday 20 December 2016

CASES AND LEGAL PRINCIPLES

T.A DOHERTY V SIR ABUBAKAR TAFAWA BALEWA & ORS (1961) ANLR 630                            (THE BLUE PENCIL RULE)

This rule is applied to sever a part of a legislation that is good in the sense that it is valid, from the part that is bad, in that is invalid. in other words, THE BLUE PENCIL RULE is run over the part that is bad.
    If what remains of the impugned legislation, i.e the part that is good can stand, then it is applied. but if what remains cannot stand on its own, the impugned legislation is declared invalid.

 TELLA V AKERE & ORS ( CONSEQUENCE OF NOT INCLUDING A RELIEF SOUGHT IN THE STATEMENT OF CLAIM AND COUNTER CLAIM)
  It is a settled law that where a relief is not mentioned in a statement of claim it will be deemed to have been aboned.

EDOKPOLOR AND CO LTD V SAM-EDO WIRE 
( NATURE OF THE EFFECT OF THE OBJECT CLAUSE OF THE MEMORANDUM OF ASSOCIATION)

The object clause are no more than a list of the objects the company may lawfully carry out. they are not certainly not objects that the company must execute.

(ON PER-INCORPORATION CONTRACT)
It is now a settled principle of company law that a company is not bound by a pre-incorporation contract being a contract entered into by parties when it was not in existence. no one can contract as agent of such a proposed company there being no principal in existence to bind.

But there is nothing preventing the company after incorporation from entering into a new contract to put into effect the terms of the pre-incorporation contract. this new contract can be in express terms or can be implied from the acts of the company after incorporation as well as from the minutes of its general meetings and board meetings.

The inclusion of the terms of the Pre-incorporation agreement in the memorandum of association of a company is an indication of a strong desire by the contracting shareholders that the proposed company after its incorporation should execute the terms of the agreement so included. this can be taken together with the acts of the company after incorporation in determining whether a new contract has come into existence.

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