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CONSOLIDATED AFRICAN SELECTION TRUST LTD v. NKETIA

1971

COURT OF APPEAL

CORAM

  • APALOO
  • JIAGGE
  • SOWAH

Areas of Law

  • Employment Law
  • Contract Law
  • Civil Procedure

AI Generated Summary

Apaloo J.A., writing for the Court of Appeal with JIAGGE J.A. and SOWAH J.A. concurring, reversed a High Court judgment awarding damages to a former surveyor of the appellant company. The respondent’s employment was governed by written letters of engagement, culminating in exhibit D (October 1962), which allowed termination on notice, later varied to three months for the company’s notice obligation. A separate pension and provident fund letter (exhibit E) referenced the Exchange Control Act, 1961 (Act 71) and expressed a hope of career to normal retirement age. The High Court treated paragraph (8) of exhibit E as a collateral contract of life employment, but the appellate court held exhibit E was incidental and did not fetter the express termination clause in exhibit D. The company lawfully terminated by paying three months’ salary in lieu of notice, had no contractual duty to provide reasons, and the wrongful dismissal claim failed.

JUDGMENT