EMMANUEL DELA AMEKUDZI VS. KWAME POKU BRIFO
2019
HIGH COURT
GHANA
CORAM
- HER LADYSHIP MRS. ANGELINA MENSAH-HOMIAH J.
Areas of Law
- Contract Law
- Evidence Law
2019
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff sued the defendant for failing to make agreed payment installments for a property bought for US$185,000. The court analyzed bank statements, payment schedules, and the enforceability of the interest clause. It found penal interest clauses unenforceable and concluded that the amount overpaid by the defendant sufficiently compensated the plaintiff for the delayed payments, hence ruling against the plaintiff's claim for additional interest.
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