Facts:

The respondent, Ecumenical Development Co-operative Society (EDCS) who is a non-profit making organization based in the Netherlands, engaged in the support and development of third world countries, agreed to advance and did in fact advance to the AMIKE EZZANGBO COMMUNITY FARMS (NIG.) LTD. (hereinafter called “the company”), a loan of the sum of $500,000.00 (Five hundred thousand U.S Dollars) for the purpose of financing the purchase of an equipment, vehicle and working capital for the development of the company’s agricultural project at Amike Ezzangbo, Ishielu, Enugu in Enugu State of Nigeria – (now in Ebonyi State) at the time of the contract.

The agreement executed between the respondent and the company evidencing the said loan, is dated 18th January 1990 and to this end the company also mortgaged to the respondent, its landed property also situate at Amike Ezzangbo. The 1st and 2nd appellants, Chief Peter Amadi and his wife Mrs. Amadi respectively are the promoters, shareholders and directors of the company in question. Both of them as directors of the company executed their personal guarantee on the loan which was incorporated into the said loan agreement, wherein they undertook to repay the principal sum and the interest at the rate of 9% per annum, in the event, the company failed or were unable to repay the loan and interest for any reason whatsoever.