LIQUIDATED MONEY DEMAND – WHAT IS? – FACTORS DETERMINANT OF A LIQUIDATED SUM 

CASE CITATION: A.T.S. & SONS & 3 ORS. v. BEN ELECTRONICS CO. NIG. LTD.(2018) 6 S.C. (Pt. I) 37 @ 91 

DATE OF JUDGMENT: FRIDAY 1ST DAY OF JUNE, 2018 

COURT:       SUPREME COURT 

SUIT NO:    SC. 226/2013 

CORAM:      OLABODE RHODES-VIVOUR, JSC  – (Presided)

MARYUKAEGO PETER-ODILI, JSC

JOHN INYANG OKORO, JSC  – (Delivered the Leading Judgment)

AMIRU SANUSI, JSC

SIDIDAUDABAGE, JSC

 

ISSUE(S):   LIQUIDATED MONEY DEMAND – WHAT IS? – FACTORS DETERMINANT OF A LIQUIDATED SUM.

 

CASE SYNTHESIS

“My Lords, the question may be asked: what is  liquidated money demand? This court has given a clear  definition or exposition on the issue in the case of Dr.  Oladipo Maja v. Mr. Costa Samouris (2002) 3 S.C. 37 at  Page 12, Lines 15-30 by Iguh, JSC:

“A liquidated demand is a debt or other  specific sum of money usually due and  payable and its amount must be already  ascertained or capable of being ascertained  as a mere matter of arithmetic without any  other or further investigation. Whenever,  therefore, the amount to which a Plaintiff is  entitled can be ascertained by calculation or fixed by any scale of charges or other  positive data, it is said to be liquidated’ or  made clear. Again, where the parties to a  contract, as part of the agreement between  them, fix the amount payable on the default  of one of them or in the event of breach by  way of damages, such sum is classified as  liquidated damages where it is in the nature  of a genuine pre-estimate of the damage  which would arise from breach of the  contract so long as the agreement is not  obnoxious as to constitute a “penalty” and  it is payable by the party in default. The term  is also applied to sums expressively made  payable as liquidated damages under a  statute.”

From the above definition, the factors determining a  liquidated sum may be stated as follows:-

  1. The sum must be arithmetically ascertained or ascertainable without  further investigation.
  1. If it is in reference to contract, the parties to the same must have mutually and  unequivocally agreed on a fixed amount  payable on breach.
  1. The agreed and fixed amount must be known prior to the breach.

– A.T.S. & SONS & 3 ORS. v. BEN ELECTRONICS CO. NIG. LTD. (2018) 6

S.C. (Pt. I) 37 @ 91 – click HERE to read full judgment

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