ICANBusiness LawLaw of Contract: Vitiating Factors and Discharge2025

QUESTION 2 Elder Alabi (78 years old), a retired executive director of Zenith Energy Plc, lives alone and suffers from mild dementia. He relies entirely on his spiritual advisor, Pastor Barnabas of the Celestial Deliverance Ministry, for financial advice and personal care. In March 2023, Pastor Barnabas convinced Elder Alabi to execute a deed of gift transferring Elder Alabi's multi-million Naira commercial property in Victoria Island, Lagos, to the Ministry for a nominal sum of N100,000, claiming it was a divine instruction to secure Elder Alabi's eternal salvation. Separately, in January 2023, Elder Alabi entered into a written contract with Lekki Dredging & Maritime Ltd to transport a cargo of imported contraband goods (banned under the Customs and Excise Management Act) from an illegal offshore vessel to an undisclosed warehouse in Badagry for a fee of N10,000,000. Elder Alabi paid an advance deposit of N4,000,000. Lekki Dredging & Maritime Ltd subsequently failed to deliver the goods and refused to refund the deposit, citing that the contract had been breached by both parties. Elder Alabi's children discovered these transactions in late 2023 and intend to take legal action. Required: (a) Examine the validity of the property transfer to Pastor Barnabas's Ministry under the doctrine of Undue Influence, citing relevant legal principles and authorities. (10 Marks) (b) Analyze the legal status of the contract between Elder Alabi and Lekki Dredging & Maritime Ltd, and determine whether Elder Alabi can recover the N4,000,000 deposit paid under Nigerian law. (9 Marks) (c) State three (3) ways by which a contract may be discharged by breach. (6 Marks) (Total: 25 Marks)

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