Facts:

The 1st appellants, Consolidated Resources Limited is a company involved in sourcing and placement of funds and rendering financial advisory services to its customers. It sourced from the respondent the sum of US$449,600.00 which sum was paid for in the naira equivalent. By a contract entered into between 28th May 1999 and 9th June 1999 the respondent was to pay an agreed sum of $449,600.00 into an account in Singapore designated by the 2nd appellant Paulinus Ozonnagbo. However as a result of the failure of the respondent to pay as agreed, the 2nd appellant’s business suffered as its overseas customers refused to avail him all the goods he had ordered. The appellant’s made several demands of the respondent to pay the said outstanding sum. It promised to pay but consistently defaulted. On the threat by the appellant to resort to the court to recover the dollars owing, the respondent offered to pay $10,000.00 interest, provided the appellants stayed action on filing the suit. But the respondent still refused to pay both the outstanding sum and the $10,000.00 interest and the appellants felt compelled to go to court to recover the said outstanding sum.

At the trial, the respondent did not file a statement of defence nor did it take any steps to defend itself. The appellants called two witnesses, tendered some documentary exhibits and closed its case. In a considered judgment delivered on 30th April 2003, the Lagos State High Court dismissed the appellants’ case in its entirety and obviously dissatisfied with the judgment, the appellant appealed to the Court of Appeal on the ground inter alia that the learned trial Judge was in error to have dismissed its case despite the respondent’s admission of its indebtedness.