ERNESTINA GBAAGONAH v. KOKU SMITH
February 26, 2010
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP MR. JUSTICE S. H. OCRAN
Areas of Law
- Property and Real Estate Law
- Contract Law
- Civil Procedure
February 26, 2010
HIGH COURT
GHANA
CORAM
AI Generated Summary
Mr. Justice S. H. Ocran of the High Court determined a land dispute involving a workshop operator and a landowner at La near the Trade Fair Site in Accra. The parties had a five-year, non-renewable tenancy beginning 1 January 2004. During the tenancy, the landowner offered first option to purchase conditioned on a $3,000 commitment fee due 31 March 2006, later extended to 30 September 2006. The occupier paid only part of the fee and claimed the landowner failed to provide a site plan; the court found a site plan annexed to the lease and removed from the occupiers copy. The land was subsequently sold to a third party and the occupier was notified to vacate by 31 December 2008. The court held the occupier breached the sale arrangement, ordered vacant possession and mesne profits at GH820 per month, dismissed damages and the counterclaim for development refunds and interest, and awarded GH81,500 costs.
BY COURT:
By the Plaintiff’s Writ issued on 27th April, 2009, she claimed the following:
I. A declaration that the tenancy agreement between the parties herein entered on the 24th day of November, 2003 expired on the 23rd day of November, 2008.
II. An Order against the Defendant to give vacant possession of the land to the Plaintiff.
III. An Order against the Defendant to pay Mesne profit from the 24th day of November, 2008 till the date that Defendant will give vacant possession of the land.
IV. Damages for breach of Contract.
V. Cost.
The facts as agreed to by the parties are that on the 24th day of November, 2003, the parties entered into a contract for the use of the Plaintiff’s land for 5 years to operate a Mechanic Workshop. That the rent for the 5 years was paid. During the term of the 5years agreement, the Plaintiff decided to sell or assign the said land and the Defendant agreed to take the assignment of the plot. The Plaintiff claimed that the contract price was $25,000.00 or its cedi equivalent but the defendant said it was $19,000.00. That the parties also agreed that a commitment fee of GH¢3,000.00 was to be paid before the last day of March, 2006, but the Defendant could not pay this amount by the agreed date. As a result of the Defendant’s inability to pay the commitment fee by the last day of March, 2006, the Plaintiff caused a letter to be written to the Defendant cancelling the proposal to sell or assign the land to the Defendant. The Defendant also field a defence and explained that he could not pay the commitment fee at the time because the Plaintiff failed and or refused to supply him with a site plan to enable him conduct a search at Lands Commission to ascertain the ownership of the land. He Counter-Claimed as follows:
1. Refund of all monies spent on the development of the land made up as follows:
a) Filling of the land - GH¢1,500.00
b) Construction of a 3 bedroom house on the land GH¢500.00
2. Interest on the commitment fee of GH¢3,400.00 from May 2006, to May 2008.
3. Damages for breach of Contract
4. Cost.
The issues that were set down for determination at the close of pleadings are as follows:
a) Whether or not the tenancy agreement between Defendant and Plaintiff has expired.
b) Whether or not there was a notice to renew the tenancy.
c) Whether or not there was a notice to Defendant to give vacant possession.
d) Whether or not the tenancy agreement between Plaintiff and Defendant was renewed.
e) Whether o