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ANY OFFICIAL CAN GIVE TESTIMONY FOR A COMPANY

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Comet Shipp. Agencies Ltd v. Babbit Ltd (2001) FWLR (Pt. 40) 1630, (2001) 7 NWLR (Pt. 712) 442, 452 paragraph B, per Galadima JCA (as he then was ) held that: “Companies have no flesh and blood. Their existence is a mere legal abstraction. They must therefore, of necessity, act through their directors, managers and officials. Any official of a company well placed to have personal knowledge of any particular transaction in which a company is engaged can give evidence of such transaction.”

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AT COMMON LAW, PRE-INCORPORATION CONTRACT IS NULL – HOWEVER

At common law a company before its incorporation has no capacity to contract. Consequently, nobody can contract for it as Agent nor can a pre-incorporation contract be ratified by the company after its incorporation -Transbridge Co. Ltd. v. Survey International Co. Ltd. (1986) 17 NSCC 1084; (1986) 4 NWLR (Pt. 37) 576; Edokpolo & Co. Ltd. v. Sem-EdoWire Industries Ltd. & Ors. (1984) 7 SC 119; Sparks Electrics (Nig.) Ltd. v. Ponmile (1986) 2 NWLR 579; Enahoro v.I.B.WA. Ltd. (1971) 1 NCLR 180; Kelner v. Baxter (1867) LR 2CP 174; Natal Land and Colonisation Co. v. Pauline Syndicate (1904) AC 120. The rationale for this rule was stated at page 183 of the report by Erle, C.J. in Kelner v. Baxter in these words: “………………….as there was no company in existence at the time, the agreement would be wholly inoperative unless it were held to be binding on the defendants personally. The cases referred to in the course of the argument fully bear out the proposition that, where a contract is signed by one who professes to be signing ‘as agent’, but who has no principal existing at the time, and the contract would be altogether inoperative unless binding upon the person who signed it, he is bound thereby: and a stranger cannot by a subsequent ratification relieve him from that responsibility. When the company came afterwards into existence it was a totally new creature, having rights and obligations from that time, but no rights or obligations by reason of anything which might have been done before.” The company can, however, after its incorporation, enter into a new contract to put into effect the terms of the pre-incorporation contract – Touche v. Metropolitan Railway Warehousing Co. (1871) 6 Ch. App 671; Howard v. Patent Ivory Manufacturing Co. (1888) 38 Ch D 156.

— Ogundare, JSC. Societe Favouriser v. Societe Generale (1997) – SC.126/1994

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IN RECEIVERSHIP COMPANY DOES NOT LOSE ITS LEGAL PERSONALITY

It is important to appreciate the fact that the company neither loses its legal personality nor its title to the goods in the receivership.

– Karibi-whyte, JSC. Intercontractors v. National Provident (1988)

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ADMISSION OF FRESH EVIDENCE ON APPEAL MUST BE BY CAUTION

The power to admit new, fresh or additional evidence must always be exercised sparingly and with caution. The Court must consider whether there are special circumstances to warrant the grant of the application and whether it would be in furtherance of the justice of the case. See: Uzodinma vs Izunaso (No.2) (2011) 17 NWLR (Pt. 1275) 30 @ 55 B-C.

— K.M.O. Kekere-Ekun, JSC. Williams v Adold/Stamm (2007) – SC.404/2013

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WHEN IS A PIECE OF EVIDENCE CREDIBLE

A piece of evidence is credible when it is worthy of belief, see Agbi v. Ogbeh (2006) 11 NWLR (Pt. 990) 1; Dim v. Enemuo (2009) 10 NWLR (Pt. 1149) 353, Eta v. Dazie (2013) 9 NWLR (Pt. 1359) 248; A. J. Inv. Ltd. v. Afribank (Nig.) Plc. (2013) 9 NWLR (Pt. 1359) 380; Emeka v. Chuba-Ikpeazu (2017) 15 NWLR (Pt. 1589) 345. In the same vein, a piece of evidence is conclusive if it leads to a definite result, .see Nruamah v. Ebuzoeme (2013) 13 NWLR (Pt. 1372) 474.

— O.F. Ogbuinya JCA. Stanbic IBTC Bank Plc v. Longterm Global Cap. Ltd. & Ors. (September 20 2021, ca/l/1093/2017)

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A COMPANY IS NOT BOUND BY A PRE-INCORPORATION CONTRACT

It is now a settled principle of company law that a company is not bound by a preincorporation 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. It is also settled that after incorporation a company cannot ratify such a contract purported to be made on its behalf before incorporation … But there is nothing preventing the company after incorporation from entering into a new contract to put into effect the terms of the preincorporation 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.

— Nnamani, JSC. Edokpolo v. Sem-Edo & Ors. (1984) – SC.89/1983

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RAISING AN APPEAL ON ADMITTED EVIDENCE

Chief Williams submits that a ruling on admissibility of evidence is provisional as a trial Judge in his final judgment may still exclude evidence that has been admitted if he discovers it has been wrongly admitted. In my respectful view, that submission appears rather too wide. The two authorities cited by him as supporting it do not go as far. In NIPC v. Thompson Organisation (1969) 1 NMLR 99, it is evidence that goes to no issue but wrongly admitted that is held should be expunged when considering the verdict. In Jacker v. International Cable Co. Ltd. 5 TLR 13, another case cited by Chief Williams, it was held there that where matter has been improperly received in evidence in the court of trial, even when no objection has been there raised, it is the duty of the Court of Appeal to reject it and to decide the case on legal evidence. With profound respect to the learned Senior Advocate these two decisions which he cited in oral argument before us do not support the rather wide submission he has made. In my view where evidence is tendered and objected to and the trial Judge, after full arguments by counsel for the parties, admits or rejects same, he cannot later, when considering his judgment reverse himself without hearing the parties; he cannot sit on appeal over his own judgment. Where evidence which goes to no issue has been inadvertently admitted the trial Judge is under a duty to disregard it when considering his verdict. If he fails to do so, an appellate court will.

— Michael Ekundayo Ogundare, JSC. Saraki v. Kotoye (1992) – S.C. 250/1991

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