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B.B.C. TRADING CO., LTD v. BASSIL

1963

HIGH COURT

GHANA

CORAM

  • PREMPEH J

Areas of Law

  • Contract Law
  • Evidence Law
  • Civil Procedure
  • Commercial Law
  • Banking and Finance Law

AI Generated Summary

A plaintiff-company secured judgment for the price of goods while the court addressed a counterclaim by the defendant seeking £G2,000 based on purported guarantees for friendly loans to two individuals, Mr. Nakouzi and Mr. Koudsi. The defendant’s chief clerk credibly testified that Nakouzi issued two post-dated £G500 cheques (exhibits A and A1) and Koudsi issued a post-dated £G1,000 cheque (exhibit B), and that the plaintiffs’ managing director, Elia Bou Chedid, endorsed guarantees on the backs, signed, and affixed the company stamp for A and A1; he also endorsed B. The plaintiffs contended the transactions were unlawful moneylending with interest and the guarantees unenforceable under the Statute of Frauds for lack of memorandum and consideration. The court rejected those defenses, holding the loans interest-free and finding the endorsements sufficient and supported by implied consideration through forbearance. It bound the company on A and A1 but not on B, entering judgment on the counterclaim for £G1,000 plus costs.

JUDGMENT