Employment and loan contracts

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.”

Blogger’s Note:

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.
 
 
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