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BOOMTRADE COMPANY LTD v. MESSRS COTECNA & ORS.

March 24, 2006

COURT OF APPEAL

GHANA

CORAM

  • ARYEETEY, JA [PRESIDING]
  • ABBAN [MRS], JA
  • QUAYE, JA

Areas of Law

  • Tort Law
  • Contract Law
  • Commercial Law
  • Civil Procedure

AI Generated Summary

A Ghanaian importer sued its foreign seller and the pre-shipment inspection agency after a container of canned tomato paste later proved unwholesome. The seller defaulted and judgment was entered against it, but the trial court also held the inspection agency liable, reasoning that the Clean Report of Findings (CRF) was relied upon and misrepresented the goods. On appeal, Justice G.M. Quaye analyzed proximity and duty of care principles from Candler, Donoghue, Smith v Eric Bush, and Hedley Byrne, but found no proven reliance: the pro-forma invoice and irrevocable letter of credit predated the inspection and the CRF. The importers managing director admitted the unwholesomeness was only discovered months after warehousing, with formal lab tests in November 1999. Given the perishable nature of the goods, the trial courts conclusion that the goods were unwholesome at delivery was unsupported. Even though duty without privity can exist, the disclaimer principles and the factual timeline defeated liability here. The Court of Appeal allowed the appeal and reversed the trial courts orders, with Justices B.T. Aryeetey and H. Abbam concurring.

JUDGMENT