Facts:

The 2nd appellant took out a legal mortgage on his undeveloped land with the 1st appellant, a commercial bank. Whilst the land was under the mortgage, the 2nd appellant developed it into a three-storey building. The 2nd appellant was however unable to continue payment to the 1st appellant who sought to foreclose the mortgage. The 1st appellant in seeking a purchaser for the mortgaged land found the respondent who purchased the property for the sum of N180,000 (One hundred and eighty thousand naira).

The respondent contended that he searched the lands registry anddid not find any encumbrance on the property, however, upon purchase, he found an encumbrance on the property and could not take physical possession of the building. He sued at the lower court seeking a rescission of the contract, a refund of his money and damages for misrepresentation.