Daily Law Tips (Tip 743) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
![image](/2020/10/lawreport.jpg")
Introduction:
It is common to find a person/company that work through another
person/company. This nature of affairs creates agency, where a
master/principal acts through another person (agent). In such
circumstances, the actions and inactions of an agent are deemed to
be that his/her master (principal). So, a person that acts through
another person, acts through himself. Then, one wonders, when
agents must refund money paid to their masters and not wait for
their masters to order/permit for such repayment?
![image](/2021/01/payne-alex.jpg")
Agents and Money:
Most people are often comfortable to deal with agents on all
issues, but payment of money. People are more comfortable to pay
masters directly and not their agents. Well, there are inevitable
circumstances where no person can pay or go to a master/principal
except through an agent. So, if in such circumstance, money have
been paid to an agent, when must an agent refund money paid for his
master/principal?
There is no better way to answer the question, other than through
the judgments and decision of Supreme Court of Nigeria. The Supreme
Court of Nigeria is the apex court in Nigeria and has the final
power over all issues before any court in Nigeria. So, hear the
wisdom of the Supreme Court;
“In Bowstead on Agency, 12th Ed. Article 124 thereof, the
learned author stated as follows:- “Where money is paid to an agent
for the use of his principal, and the circumstances of the case are
such that the person paying the money is entitled to recover it
back, the agent is personally liable to repay such money in the
following cases namely:- (a) … (b)… (c) where the money is paid
under a mistake of fact, or under duress, or in consequence of some
fraud or wrongful act, and repayment is demanded of the agent, or
notice is given to him of the intention of the payer to demand
payment, before he has in good faith paid the money over to, or
otherwise dealt to his detriment with the principal in belief that
the payment was a good and valid payment.” Per WALTER SAMUEL NKANU
ONNOGHEN ,J.S.C ( P. 17, paras. A-E ) in the case of FBN PLC v.
OZOKWERE (2013) LPELR-21897(SC).
Conclusion:
An agent of a known/disclosed principal is often not held
responsible for his actions and inactions, rather his master is
responsible for such. Well, this position changes at some point.
There are circumstances where an agent is expected to be held
responsible for money paid and received by him on behalf of his
principal. And, in such circumstances, the argument that an agent
forwarded the money to his principal does not exempt the agent from
liabilities. The circumstances include; where the money was paid to
an agent by mistake, fraud, force or a demand for refund was made
to the agent, before money was forwarded to a principal.
My authorities, are:
1. The judgment of the Supreme Court of Nigeria in the case of FBN
PLC v. OZOKWERE (2013) LPELR-21897(SC).
2. The judgment of the Court of Appeal in the case of MR. ONYEBUCHI
NWOBU v. CHIEF AMOBI ANARA (2020) LPELR-49944(CA).
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#SabiHumanRights
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#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/GAEPC3mH1ik0Ghq0yvzbvv or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of
Sabi Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram:Â @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those that
need it most. Save a Nigerian today! NOTE: Sharing, modifying or
publishing this publication without giving credit to the author or
Sabi Law Foundation is a criminal breach of copyright and will be
prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.
Daily Law Tips (Tip 743) by Onyekachi Umah, Esq., LL.M,
ACIArb(UK)
Introduction:
It is common to find a person/company that work through another
person/company. This nature of affairs creates agency, where a
master/principal acts through another person (agent). In such
circumstances, the actions and inactions of an agent are deemed to
be that his/her master (principal). So, a person that acts through
another person, acts through himself. Then, one wonders, when
agents must refund money paid to their masters and not wait for
their masters to order/permit for such repayment?
Agents and Money:
Most people are often comfortable to deal with agents on all
issues, but payment of money. People are more comfortable to pay
masters directly and not their agents. Well, there are inevitable
circumstances where no person can pay or go to a master/principal
except through an agent. So, if in such circumstance, money have
been paid to an agent, when must an agent refund money paid for his
master/principal?
There is no better way to answer the question, other than through
the judgments and decision of Supreme Court of Nigeria. The Supreme
Court of Nigeria is the apex court in Nigeria and has the final
power over all issues before any court in Nigeria. So, hear the
wisdom of the Supreme Court;
“In Bowstead on Agency, 12th Ed. Article 124 thereof, the
learned author stated as follows:- “Where money is paid to an agent
for the use of his principal, and the circumstances of the case are
such that the person paying the money is entitled to recover it
back, the agent is personally liable to repay such money in the
following cases namely:- (a) … (b)… (c) where the money is paid
under a mistake of fact, or under duress, or in consequence of some
fraud or wrongful act, and repayment is demanded of the agent, or
notice is given to him of the intention of the payer to demand
payment, before he has in good faith paid the money over to, or
otherwise dealt to his detriment with the principal in belief that
the payment was a good and valid payment.” Per WALTER SAMUEL NKANU
ONNOGHEN ,J.S.C ( P. 17, paras. A-E ) in the case of FBN PLC v.
OZOKWERE (2013) LPELR-21897(SC).
Conclusion:
An agent of a known/disclosed principal is often not held
responsible for his actions and inactions, rather his master is
responsible for such. Well, this position changes at some point.
There are circumstances where an agent is expected to be held
responsible for money paid and received by him on behalf of his
principal. And, in such circumstances, the argument that an agent
forwarded the money to his principal does not exempt the agent from
liabilities. The circumstances include; where the money was paid to
an agent by mistake, fraud, force or a demand for refund was made
to the agent, before money was forwarded to a principal.
My authorities, are:
1. The judgment of the Supreme Court of Nigeria in the case of FBN
PLC v. OZOKWERE (2013) LPELR-21897(SC).
2. The judgment of the Court of Appeal in the case of MR. ONYEBUCHI
NWOBU v. CHIEF AMOBI ANARA (2020) LPELR-49944(CA).
Sabi Law Projects:
#SabiLaw
#DailyLawTips
#SabiBusinessLaw
#SabiElectionLaws
#SabiHumanRights
#SabiLawOnBeatFm
#SabiLawLectureSeries
#CriminalJusticeMonday
#SabiLawVideoChallenge
Speak with the writer, ask questions or make inquiries on this
topic or any other via onyekachi.umah@gmail.com,
info@LearnNigerianLaws.com or +2348037665878 (whatsapp).
To receive free Daily Law Tips, join our free WhatsApp group via
https://chat.whatsapp.com/GAEPC3mH1ik0Ghq0yvzbvv or Telegram group,
via the below link: https://t.me/LearnNigerianLaws
To keep up to date on all our free legal awareness projects of
Sabi Law Foundation, follow us via
Facebook Page:@LearnNigerianLaws,
Instagram:Â @LearnNigerianLaws, Twitter: @LearnNigeriaLaw and
YouTube: Learn Nigerian Laws
Please share this publication for free till it gets to those that
need it most. Save a Nigerian today! NOTE: Sharing, modifying or
publishing this publication without giving credit to the author or
Sabi Law Foundation is a criminal breach of copyright and will be
prosecuted. This publication is the writer’s view not a legal
advice and does not create any form of relationship. You may reach
the writer for more information.
This publication is powered by www.LearnNigerianLaws.com {A Free
Law Awareness Program of Sabi Law Foundation, supported by the law
firm of Bezaleel Chambers International (BCI).} Sabi Law Foundation
is a Not-For-Profit and Non-Governmental Legal Awareness
Organization based in Nigeria.