ICANBusiness LawLaw of Contract: Formation2023

Apex Construction Ltd contracted with the Kano State Ministry of Works to construct a road for ₦500,000,000 with a completion date of December 31. By October, Apex realized it would suffer a financial loss on the project and threatened to stop work unless the Ministry promised an extra ₦50,000,000. The Ministry agreed in writing to pay the additional sum. Apex completed the road on time, but the Ministry refused to pay the extra ₦50,000,000, citing lack of consideration. Under contract law principles applicable in Nigeria, which statement correctly evaluates the enforceability of the Ministry's promise?

AThe promise is enforceable because performing an existing public contract automatically provides sufficient legal consideration
BThe promise is unenforceable because performing an existing contractual obligation owed to the same promisee is not valid consideration, unless Apex conferred a practical benefit without economic duressCORRECT
CThe promise is automatically enforceable because it was made in writing by an arm of government
DThe promise is unenforceable because statutory contracts are totally exempt from the requirements of offer and acceptance
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Why the answer is B, and why the others tempt you.
Under the traditional rule in Stilk v Myrick as modified by Williams v Roffey Bros & Nicholls (Contractors) Ltd, performing an existing contractual obligation is not valid consideration unless the promisor obtains a practical benefit or avoids a disbenefit, and there is no economic duress or fraud. If Apex extracted the promise via economic duress or merely threatened to breach its existing duty without providing a practical benefit beyond performance, the promise lacks consideration and is unenforceable.
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