JAURO JCA (Delivering the Lead Judgment): The appeal herein is against the judgment of the High Court of Lagos State, Ikeja Judicial Division, coram. Obadina, J., delivered on 25 April 2007 in suit number ID/1331/ 2004.
The background facts giving rise to this appeal are as follows. The appellant, by an LPO dated 20 August 2003, awarded a contract to the respondent’s company (Ziklag Limited) for the supply of Arabescato Marble Tiles, Treads and Risers for the construction of NAMTL Housing Estate Osborne, Ikoyi. The total contract sum for the supply was N10,827,862.50k (ten million, eight hundred and twenty-seven thousand, eight hundred and sixty-two naira, fifty kobo). The supply was to be effected within 6 weeks from 2 September 2003 subject to an advance payment of 40% of the contract sum being N4,331,145.00 (four million, three hundred and thirty- one thousand, one hundred and forty-five naira), and upon production of an advance payment bond. The advance payment of the 40% was …