Legal Question in Business Law in Nigeria

I signed a service contract with a client which are under administration. I wasn't aware of their financial status at the time but the clients executives who signed the contract on their behalf were. No that pay time has come they are claiming that they are under administration and that they cannot pay my money for services rendered. Is their action legal?


Asked on 8/21/09, 8:37 am

1 Answer from Attorneys
Ehijeagbon Oserogho Oserogho & Associates

Under Nigerian Law, once a company goes into administration or receivership as it is more commonly known in Nigeria, the executives of such a company automatically seize to have the authority to bind such a company in Law.

It will therefore be recommended, based on the limited information you have provided, that you forward your claim directly to the administrators of this company. In the event that your claim is rejected on the ground that the executives of this company lacked the standing to continue to bind the company in contracts at the time you signed the contract with them, you could consider taking legal actions privately against the directors individually for misconduct and damages.

We hope that the above is of some assistance to you. Best wishes.

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Answered on 8/21/09, 9:50 am


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