Facts:

The respondent requested the appellant in writing to reserve all the rooms in its Hotel from the 2nd to 6th January 2003. The appellant confirmed the availability of sixty (60) rooms at an estimated cost of N1,831,500 (One million, eight hundred and thirty-one thousand, five hundred Naira). The appellant requested that payment be made for the rooms immediately to enable it prepare for the respondents guests.

Two officials of the respondent were said to have inspected the rooms. However, the respondent did not send any of its guests to occupy the rooms from the 2nd to 6th January 2003. The appellant sent its bill for the nights that the rooms were reserved to the respondent for payment, but the respondent rejected the bill and refused to pay, claiming that the rooms were found to be unsuitable and that its decision not to take the rooms was expressed in the presence of the appellant’s Sales Manager. The appellant on its part contended that there was no official letter of cancellation of reservation or any official correspondence sent to it by the respondent.