U. UDOMA, J.S.C. (Delivering the Leading Judgment): In this appeal which is against the judgment of the High Court of Lagos State, two issues fall for decision by this court. The first is: on the facts and circumstances of this case as to whether or not the Covenant contained in Clause 6 of the Agreement of Service dated 19th September, 1967 Exhibit A, in the proceedings between the plaintiffs, now respondents, and the defendants, herein appellants, is too wide and therefore unenforceable in law; and the second is: as to whether or not the amount awarded the respondents as damages in terms of the provisions of Clause 8 of the said Agreement is a penalty and therefore unenforceable in law. By their writ of summons in Suit No. LD/204/70 the respondents claimed against the appellants the sum of 1,000(pounds) as "liquidated damages" for a breach of Agreement of Service. There was also a claim for an injunction.
The facts of the case may be summarised as hereunder appearing as the same are…