PERSONS OF UNSOUND MIND

PERSONS OF UNSOUND MIND

The general rule is that persons of unsound mind cannot enter into contract except during his lucid period and provided that a receiver has not been appointed for him.

STATUTORY CORPORATION AND REGISTERED COMPANIES

Statutory corporations are registered companies. See Section 39(1) of the Companies and Allied Matters Act (CAMA) which provides that a company shall not carry on any business not authorised by its Memorandum and shall not exceed the powers conferred upon it by its Memorandum or this Act. Section 39(3) of CAMA protects any acts, conveyance or personal property even though ultra vires from being invalidated. In other words, notwithstanding the provisions of subsection (1) of this section, no act of a company and no conveyance or transfer of property to or by a company shall be invalid by reason of the fact that such act, conveyance or transfer was not done or made for the furtherance of any of the authorised business of the company or that the company was otherwise exceeding its objects or powers.

TITLE OF A MORTGAGOR

A mortgage transaction is between the mortgagor and the mortgagee and it is the mortgagor that is supposed to transfer his title to the mortgagee. See the case of T. B. ERIKITOLA V. A. S. ALI (1941/1942) 16 NLR 565. In this case, the property was part of family land which was held by a domestic servant of the family. The servant, by a deed of gift, purported to convey it to his son.The son, on his part, by a deed of mortgage purported to mortgage it to the mortgagee. The plaintiff bought and obtained the conveyance of the property from the defendant who was also the mortgagee. An action of the plaintiff to obtain possession of the property failed because the family said it was their land it is family land and you know the principle of inalienability of family land; except it has been partitioned, you cannot sell or transfer. Before a bank will accept a property for mortgage, there is need for proper valuation to ensure that current values leaves a margin between the debt and value of the property in favour of the mortgagee.

To be continued with PROPER DOCUMENTATION AND EXECUTION

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