MUHAMMAD, JCA (Delivering the Lead Judgment): The appellants were the plaintiffs at the Kaduna State High Court. They entered into a contract with the respondents (who were the defendants at the lower court) whereby the respondents guaranteed a marketing loan of N2,800,000 granted to the appellants by Nigerian Agricultural and Cooperative Bank (NACB).
According to the terms of the guarantee, the loan was to be managed and supervised by the respondents. The loan was also to be disbursed to the respondents. Almost immediately after the first instalment of the loan was released, disagreements started between the appellants and the respondents. Those disagreements led the appellants to write to NACB complaining that the respondents were sitting on the funds and were not allowing the appellants to make proper use of the funds. NACB then wrote to the respondents to which they attached a copy of the appellant’s letter. The respondents replied to NACB stating that the conducts of the appella…