Facts:

Auto Import Export, (the plaintiff in the trial court) a Romanian company engaged in the business of exportation of motor vehicles and spare parts sometime in May 1971 entered into an agreement with a company known as Continental Motors and Engineering Company Ltd (“Continental”) to sell various motor vehicles and spare parts. The total value of the goods was worth US$9,314,565.58 and the agreement provided for the way in which the goods were to be paid for by Continental.

The payment terms were largely on credit and National Bank of Nigeria Ltd (the 3rd Respondent) was required to give 100% cover or guarantee to the plaintiff/appellant for the credit granted to Continental. Continental defaulted on its obligation to pay for the goods and sometime in 1972