ABIVAMS LIMTED v. PLATON GAS OIL LIMITED
2015
COURT OF APPEAL
GHANA
CORAM
- P.K. GYAESAYOR J.A (PRESIDING)
- F.G. KORBIEH J.A
- I.O. TANKO AMADU J.A
Areas of Law
- Contract Law
- Civil Procedure
- Evidence Law
2015
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The case involves an appeal from the High Court's refusal to grant summary judgment in a dispute over a Sale and Purchase Agreement for crude oil. The plaintiff sought payment for the crude oil provided but only received partial payment. The appeal revolved around whether summary judgment was appropriate given the Defendant's acknowledgment of the debt and partial payments. The appellate court identified errors in the trial judge’s rationale, ultimately granting the Plaintiff’s summary judgment request, while referencing relevant statutes and previous case law.
TANKO AMADU J.A (1) This appeal is from the ruling of the High Court (Fast Track Division) Accra dated 16th February, 2015 wherein the Plaintiff/Appellant’s application for summary judgment was refused. (2) In the High Court (Fast Track Division) Accra, the Plaintiff/ Appellant (hereinafter referred to as “the Appellant”) claimed against the Defendant/Respondent ( hereinafter referred to as “the Respondent”) the following reliefs:- “(a) An order for the recovery of the sum of U$D522,101.00 or its equivalent in Ghana Cedis at the prevailing Commercial rate of exchange. (b) Interest of 10% per annum on the said amount from 5th December 2014 till date of final payment. (c) General Damages for breach of contract. (d) Costs assessed at 10% of the amount owed including solicitors fees. (e) Any further order(s) that this Honourable would deem fit” (3) In a nutshell, the case of the Appellant is that by a contract contained in a Sale and Purchase Agreement/Contract CIF basis for the supply of light crude oil dated 18th July, 2014 referred to in this judgment as “the SPA” between Omaroil Agency Limited (the seller) and the Respondent herein as buyer, the seller agreed to supply the buyer 11,200 barrels of Crude Oil but delivered only 8,149 barrels with price due and payable to the seller standing at U$D693,479.90. (4) It was further agreed that payment for the crude was to be made into the account of the seller upon supply of the crude.
However, the seller provided the name and bank particulars of the Appellant at Ecobank Ghana Ltd.
Tema Main Branch as the beneficiary of the proceeds of sale. (5) Upon completion of the supply, the Respondent paid into the account provided by the Appellant the Cedi equivalent of U$D120,000.00 on 13/8/2014 for which the Appellant acknowledged by issuing a payment invoice in respect thereof on 18/8/2014.
The Appellant as beneficiary of the outstanding balance made a demand on the Respondent and when the Respondent remained in default, the parties executed a Memorandum of Understanding (MOU) dated 2nd October 2014 sequel to the SPA of 18th July 2014.
In the MOU, the Respondent inter alia acknowledged its indebtedness to the Appellant as invoiced by the Appellant in the sum of U$D567,479.90 which the Respondent promised to pay in three installments within two months by 31st December 2014.
The Respondent further agreed to pay 10% interest on the sum owed as penalty for the delay in payment. (6) Subsequent to the above, the Responden