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DONKOR v. OWONA FARKYE BROTHERS TRANSPORT

June 14, 1972

HIGH COURT

GHANA

CORAM

  • EDWARD WIREDU J

Areas of Law

  • Contract Law
  • Commercial Law

AI Generated Summary

Edward Wiredu J. resolved preliminary issues arising from a hire‑purchase arrangement between a motor dealer and a professional driver over a Toyota bus with registration GO 975 under Ghana’s Sale of Goods Act, 1962 (Act 137). Although the parties expressly excluded Part VIII (hire‑purchase contracts) through clause (4) of Exhibit A while reserving seizure rights in clause (9), the court held that parties cannot contract completely out of the Act. Their obligations must remain within the statute’s framework, and section 57, which regulates rights upon seizure in sales, governs despite the exclusion. Wiredu J. rejected arguments that the Act abolished the distinction between hire‑purchase and sale stricto sensu, finding that the memorandum and Part VIII preserve it. He further indicated, on public policy and equity, that sellers should refund a justifiable part of instalments where seizure follows substantial payment, and analogized tender of arrears to relief from forfeiture. No order as to costs was made.

JUDGMENT