Legal Nuggets (62): Knowledge of an Illegal Contract.- By Adedotun Habeeb Adetunji, LL.M (M.IoD), FCAI

PARETO FUNDS & SEC. LTD. V. INT'L TRUST BANK PLC. (2011) LPELR-4830(CA)

ISSUE

ILLEGAL CONTRACT : Whether a party who has knowledge or is presumed to have knowledge of the existences of an illegality in a transaction and entered into the transaction, can latter label it as illegal and raise illegality as a defence

PRINCIPLE
"A party, who has knowledge or is presumed to have knowledge of the existences of an illegality in a transaction and, entered into the transaction, can not latter label it as illegal and raise illegality as a defence. Equity shall not condone it, as one can not approbate and reprobate. In the instant case, as the appellant itself, through its Branch Manager at Port Harcourt, originated or perpetuated illegality and ultra vires acts, that appellant can not rely on it as defence, See Oyegoke v. Irigunh (2002) 5 NWLR (Pt. 760) 417 and Achu Vs. CSC, Cross Rivers State (2009) 3 NWLR (Pt. 1129) 475, 500 - 501."Per THOMAS, J.C.A.(P. 28, paras. B-E)

CITED CASES
Oyegoke v. Irigunh (2002) 5 NWLR (Pt. 760) 417