Facts:

The Honda Place Limited (“the appellant”) was a dealer appointed by the Japanese manufacturers of Honda cars, to import and market Honda cars in Nigeria. On 2nd December, 1993, the appellant entered into a sub-dealership agreement with Globe Motor Holdings Nigeria Limited (the respondent) as a sub-dealer of Honda cars with the right to import and market 45% of cars allotted to the appellant by the Japanese manufacturer.

A dispute arose between the parties regarding the workings of the sub-dealership agreement. In one action, Suit No. LD/1643/96 where The Honda Place Limited was the 1st plaintiff and Globe Motors was the 1st defendant, the matter was settled out of court with the “Terms of Settlement” executed by all the parties and entered as judgment of the court