Limitation of Action for Enforcement of Contractual Rights Under Nigerian Law

Description

ABSTRACT

Limitation of Action for Enforcement of Contractual Rights Under Nigerian Law

Dr Gogo George Otuturu*

A legal right to institute an action is not a perpetual right but a right generally limited by statute. After the date on which the applicable statute provides that legal proceedings cannot be taken, any person having a right of action can no longer competently institute an action. There are myriads of statutes prescribing limitation periods for the enforcement of different contractual rights. This paper examines the provisions of statutes of limitation governing the enforcement of different contractual rights and the decisions of the appellate courts interpreting them. It argues that the general limitation periods for some actions are too short and recommends that, like the Employee Compensation Act, 2010, all statutes of limitation should confer a discretion on judges to take into consideration the existence of special circumstances to extend the limitation period in appropriate cases.

Keywords: Cause of Action, Contractual Rights, Limitation of Action, Right of Action

INTRODUCTION
The law of contract is concerned with obligations created by the parties to a contract and the circumstances of their legal enforceability.₁ Contractual obligations are, therefore, to be distinguished from public obligations. The parties to the contract confer rights and impose liabilities on themselves.₂ Every right founded on a contract is, therefore, a private right.₃ Public obligations, on the other hand, are imposed by law such as the obligations imposed by constitutional law, administrative law and criminal law.₄

The law of contract is the foundation of all business transactions. Trade and commerce would be impossible,₅ and business would be unable to function in a complex society without the law of contract. It provides the legal framework for the conduct of business;₆ eliminates uncertainty;₇ and provides safeguards against commercial losses.₈

* LL.B, BL, LL.M, PhD, CBA, DipEd, ANITD, ACIArb (Nigeria). Senior Lecturer, Faculty of Law, Niger Delta University, Wilberforce Island, Nigeria. E-mail:

ot********@gm***.com











; 08033036092.

1. GH Treitel, The Law of Contract (9th edn, Sweet & Maxwell 1995) 7.
2. Attorney-General of Rivers State v Attorney-General of Akwa Ibom State [2011] 8 NWLR (part 1248) 31, 84 [F]-[G] (Katsina-Alu JSC).
3. Bamidele v Commissioner for Local Government and Community Development, Lagos State [1994] 2 NWLR (part 328) 568, 583 [G] (Uwaifo JCA).
4. PS Atiyah, An Introduction to the Law of Contract (3rd edn, Oxford University Press 1981) 1-2.
5. AG Guest (ed), Chitty on Contracts: General Principles (24th edn, Sweet & Maxwell 1977) 1.
6. GG Otuturu, The Legal Environment of Business in Nigeria (Ano Publications 2003) 92.
7. A-G, Rivers State v A-G, Akwa Ibom State [2011] 8 NWLR (part.1248) 31, 149 [A] (Muhammad JSC).
8. British Airways v Atoyebi [2010] 14 NWLR (part 1214) 561 E (Saulawa JCA).

THE GRAVITAS REVIEW OF BUSINESS & PROPERTY LAW VOL.11 NO.4