NASARALAI ENTERPRISES LTD.
V.
ARAB BANK NIGERIA LTD.
·
BELLO, JSC (Presiding and Delivering the Leading Judgment): The dispute between the parties in this appeal had its root embedded in the use of a letter of credit issued to facilitate international trade for the purchase of 100,000 bags of rice at the price of (US)$2,200,000 by a buyer in Nigeria from a seller in Thailand. On the application of Nasaralai Enterprises Ltd. which was the buyer and is hereinafter referred to as the Appellant, the Arab Bank (hereinafter referred to as the Respondent) issued on 15th September 1978 an irrevocable letter of credit to Bank of Tokyo in Thailand wherein the Respondent instructed the Bank of Tokyo to pay the said price to World Grain Company Ltd., which was the seller, on receiving from the seller documents drawn in conformity with the terms and conditions of the letter of credit. One of the terms of the letter of credit was the rice should be put on board a vessel on or before 15th October 1978 but the date was later extended by the parties to 15…