JAURO JCA (Delivering the Lead Judgment): The appeal herein is against the judgment of Oyo State High Court of Justice, Ibadan, delivered on 4 April 2003 by Hon. Justice A. Adeniran, in suit No. I/567/91.
The background facts culminating in this appeal can be compressed as follows. In 1988, the respondent approached the 1st appellant for a loan to augment her trading capital. After a long and involved discussion and negotiation, the 1st appellant advanced to the respondent the sum of ₦10,000.00 (ten thousand naira) with 24% interest per annum as ‘trial loan’. The respondent settled the said loan with interest in 1989. After the redemption of the trial loan, the respondent applied for a fresh loan and the 1st appellant obliged her. Consequently, a fresh loan in the sum of ₦38,374.00 (thirty-eight thousand, three hundred and seventy-four naira) with 25% interest per annum was advanced to the respondent subject to the provision of collateral security. The respondent deposited her title …