When entering into a contract in Nigeria, it is important to understand the sources of Nigerian law of contract. Contracts play a vital role in business and personal transactions, and it is essential to know the laws and regulations surrounding them. In this article, we will discuss the sources of Nigerian law of contract.
1. Common Law
The first source of Nigerian law of contract is the common law. Common law refers to the legal system that originated in England and was adopted by Nigeria. The common law of contract is based on judicial decisions and precedents established by courts in England and Nigeria. It is also influenced by the laws of other Commonwealth countries.
Statutes are another source of Nigerian law of contract. These are laws that are created and passed by the National Assembly or State Houses of Assembly. Nigerian contract law is governed by various statutes, such as the Sale of Goods Act, the Hire Purchase Act, and the Contracts (Rights of Third Parties) Act. These statutes set out the rights and obligations of parties in a contract and provide remedies for breaches of contract.
3. Customary Law
Customary law is another source of Nigerian law of contract. Customary law refers to traditional laws and practices that have been developed and followed by various ethnic groups in Nigeria. These laws are unwritten and are enforced by traditional leaders and community members. Customary law is prevalent in rural areas, and it can have a significant impact on contracts entered into in those areas.
Equity is a source of Nigerian law of contract that is based on fairness and justice. It is an important aspect of contract law because it allows for the enforcement of contracts even in situations where strict legal rules may not apply. For example, equity may be used to enforce a contract if one party has acted in good faith, even if the contract was not legally binding.
In conclusion, understanding the sources of Nigerian law of contract is essential when entering into any type of contract. It is important to know the laws and regulations that govern contracts to ensure that your rights are protected and that you are not in breach of any laws. Common law, statutes, customary law, and equity are the primary sources of Nigerian law of contract, and they all play a critical role in the legal system.