EMMANUEL DELA AMEKUDZI VS. KWAME POKU BRIFO
March 26, 2019
HIGH COURT
GHANA
CORAM
- HER LADYSHIP MRS. ANGELINA MENSAH-HOMIAH J.
Areas of Law
- Contract Law
- Property and Real Estate Law
March 26, 2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
Her Ladyship Mrs. Angelina Mensah-Homiah of the High Court decided a dispute arising from the sale of House No. C1-35A at Gyamfi Loop, Lakeside Estate, Ashaley Botwe, Accra for US$185,000 between the seller (Plaintiff) and buyer (Defendant). Ghana Home Loans paid US$121,050 and the Defendant made a down payment, leaving US$48,951 payable in three instalments of US$16,317. The Defendant defaulted; cheques were dishonoured and payments were made intermittently over fifteen months. The Plaintiff sued for US$50,063 as default interest at 10% compound per month under exhibit A. The Court scrutinized whether proper written default notices were served, whether the clause was penal, and the appropriate interest for a USD obligation. Applying Akoto v Gyamfi Addo, Dunlop, Cavendish, ParkingEye, GPHA v Issoufou, and NIB v Silver Peak, the Court held the clause unenforceable, found Defendant had overpaid by US$11,783.61, dismissed the claim, and made no order as to costs.
This suit arose from a sales/purchase agreement between the parties herein in respect of House Number C1-35A Gyamfi Loop, Lakeside Estate, Ashaley Botwe, Accra for the sum of US$185, 000. 00. The fact of sale and mode of payment are not in dispute.
It is also not in dispute that the Defendant failed to pay the purchase price in the agreed manner.
The Plaintiff has therefore sued the Defendant claiming accumulated principal and interest on the purchase of the said house.
The amount sought to be recovered is US$50, 063. 00. THE PLAINTIFF’S CASE From the statement of claim and evidence adduced by the Plaintiff as contained in his witness statement filed on 10th July 2018, the agreed purchase price of the property was US$185, 000. 00. The Defendant was required under the Contract of Sale to pay the outstanding balance of the purchase price in three equal instalments of US$16, 317. 00 or its cedi equivalent.
This was after Ghana Home loans had paid an amount of US$121, 050. 00, and the Defendant had also made an initial down payment of GH$15, 000. 00. According to the Plaintiff, the 1st instalment was due on or before 30th December, 2014 but the post-dated cheque issued by the Defendant was returned for insufficient funds.
It took the Defendant almost five months to commence various payments towards the 1st instalment.
By the time the 2nd instalment was due, and when the post-dated cheque for that payment was also dishonored, the Defendant had not completed payment of the 1st instalment.
The Plaintiff also told the Court that the third post-dated cheque did not go through and the Defendant did not make the payments as per the agreed schedule in the Contract of Sale, exhibit A. The Plaintiff listed the dates of payment and amounts paid as follows: 3rd June, 2015 - GH₵15, 000. 00 equivalent to US$3, 611 8th July, 2015 - GH₵22, 000. 00 equivalent to US$ 5, 584 10th August, 2015 - US$24, 956 21st August, 2015 - GH₵9, 000. 00 equivalent to US$2, 143 30th September, 2015 - US$6, 261. The Plaintiff maintained that he arrived at the sum of US$50, 863. 00 by applying the interest rate of 10% compound interest on the outstanding balance due monthly.
When the Plaintiff was subjected to a lengthy cross-examination, he admitted that at the time he issued his writ of summons, the Defendant had made payments totaling US$185, 000. 00, which was the agreed purchase price.
He however insisted those payments were not made according to the agreed schedule of payment conta