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BUSHIE ENTERPRISE v. THE PROJECT MANAGER, NORELEC GHANA _ NORLEC GHANA

2004

COURT OF APPEAL

GHANA

CORAM

  • ARYEETEY, J.A. (PRESIDING)
  • AKOTO-BAMFOR, J.A.
  • ASARE-KORANG, J.A

Areas of Law

  • Contract Law
  • Civil Procedure

AI Generated Summary

Bushie Enterprise, a subcontractor, sued Norolec Ghana after Norolec reduced the scope of a project to erect steel transmission towers on a 34.5 kV line between Kumbungu and Daboya. Bushie alleged unilateral reduction to 42 towers and wrongful termination without the eight‑day notice stipulated in Clause 1.7 of their subcontract (exhibit A), and claimed underpayments including ¢13,360,762.28 for completing 40 towers and ¢10,530,000 for additional tower and survey work. Norolec maintained it lawfully varied the scope under Clause 2.1 and later executed a final settlement (exhibit 2) on 12 October 1998, where both parties agreed not to return for any money. On appeal, Justice Aryeetey held the trial judge improperly confined analysis to Clause 1.7 and failed to read the contract as a whole. The Court of Appeal found Norolec’s reduction was a permitted variation under Clause 2.1, and exhibit 2 barred further claims. The appeal was allowed; the trial judgment was set aside, and Bushie’s cross‑appeal was dismissed.