Termination of employment cannot frustrate contract for personal loan between employer and employee

Lewis v. UBA Plc [2016] 6 NWLR (Pt. 1508) 329 at 346-347, per Peter-Odili, JSC:

“… The contract of employment and personal loans between the appellant and the respondent are two distinct contracts having distinct subject matters and their duration not co-existent nor can it be said one is dependent on the other or that the right to terminate the contract of employment by either party could operate as a condition precedent to the repayment of the personal loan or the balance thereof.”


It is trite that in a single relationship between A and B, there may be series of other distinct contracts which run parallel. For instance, a mortgage contract is different from a loan contract or contract of sale of land. See U.B.A. Plc v. Abdullahi  [2003] 3 NWLR (Pt. 807) 359. See also, Emeka Chianu, Law of Securities for Bank Advances (Mortgage of Land)2nd ed., (Ambik Press: Benin, 2004), p. 3. Therefore, A and B can enter into an employment contract and yet enter into a contract of personal loan. Indeed these contracts are distinct.

Stephen Azubuike
Author: Stephen Azubuike
Stephen is a lawyer with expertise in Commercial Dispute Resolution and Technology Law practice. He is a Partner at Infusion Lawyers. He has successfully argued cases from the High Courts of various jurisdictions to the Appellate Courts on behalf of financial institutions, other corporate bodies and multinationals. He has worked with a number of startup tech companies. He tweets @siazubuike.


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