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ADDAI v. PIONEER TOBACCO CO. LTD.

1989

HIGH COURT

GHANA

CORAM

  • FRANCOIS J.S.C

Areas of Law

  • Contract Law
  • Tort Law

AI Generated Summary

Pioneer Tobacco Co. Ltd. advertised several vehicles for sale in early June 1986. Vehicle dealer Mr. Addai bid ¢380,000 for Land Rover ARA 74 after inspecting it at Leyland Motors, where he observed a new engine being mounted. The company accepted his tender on 26 June, and he paid on 4 July, with steps taken to transfer ownership. Leyland then refused delivery, revealing that a new engine had indeed been fitted and requiring payment before release. Pioneer attempted to renegotiate—offering either that Addai pay for the engine or accept a refund—and later withdrew its offer. Justice Francois held that the tender conditions ordinarily bind buyers, but a fundamental mistake occurred: the defendants did not intend to sell ARA 74 with a brand new engine and the bid did not reflect its enhanced value. Applying common law mistake doctrine and equitable considerations against unjust enrichment, the court dismissed Addai’s detinue claim, ordered restitution of his money and licensing payments, and awarded no costs.

JUDGMENT