Facts:

The appellant company in this case was a customer of Oceanic Bank – the respondent bank. It maintained its account with the Onitsha branch of the bank. In the course of its business with the bank, it approached the bank with a request that the bank should assist in sourcing for and remitting a total sum of US$12,000 the United States equivalent to the company’s business associates – Messrs Chin Jung Industry Co. Ltd. in Taiwan.

At the material time, rate of exchange was N22.50 (Twenty two naira fifty kobo) to one United States Dollar. The company deposited the naira equivalent, at the then prevailing rate, with the bank at its Onitsha branch. The respondent’s Onitsha branch had to contact its headquarters in Lagos where foreign exchange transactions were Executed from. The bank headquarters in Lagos could not source the required US Dollars. The appellant was eventually notified of the inability of the respondent to effect the transfer of the required US Dollars to the Taiwan based company. The naira equivalent deposited for the purpose was thereafter returned to the appellant.