Facts:

The appellant company produces paint amongst other products and it entered (as buyer) into a sale contract with the respondent for the supply of Titanium Dioxide and Busam – chemicals used in the production of paint. The contract for supply was evidenced in part by a “local purchase order” otherwise known as LPO. The respondent supplied the chemicals worth 321.9 million (twenty one million, nine hundred thousand Naira) to the appellant. The respondent contended that the LPO’s were revalidated replacements for the ones earlier issued. And also that under the terms of the contract, the appellant was to pay the full value of the goods to the respondent within 30 days of delivery, but contrary to the payment terms, the appellant did not complete payment for eight months.