INTERPLAST LTD. v. BONSU
1978
COURT OF APPEAL
GHANA
CORAM
- APALOO C.J.
- KINGSLEY-NYINAH
- FRANCOIS JJ.A
Areas of Law
- Property and Real Estate Law
- Equity and Trusts
- Civil Procedure
- Contract Law
1978
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The landlord of business premises at Liberty Avenue, Adabraka, Accra leased a four‑door store in house No. 134 (formerly C.89/2) to a corporate tenant for five years, reserving quarterly rent and including a re‑entry forfeiture clause. After an administrative oversight left six quarters unpaid through December 1976, the landlord issued a written demand on 7 February 1977. The company verified the error and tendered a cheque dated 23 February 1977 for ¢3,240 to cover arrears and rent to December 1977, which the landlord refused, insisting on forfeiture under clause 4(a). He sued for possession and sought summary judgment; the circuit judge granted possession. On appeal, Apaloo C.J. held clause 4(a) did not automatically determine the lease and that equity’s purpose is rent security, warranting relief upon full payment. Statutory relief under the English Common Law Procedure Act, 1852 (preserved by Courts Act, 1971) was engaged because payment occurred before trial. The Court of Appeal allowed the appeal.
JUDGMENT OF APALOO C.J.
The respondent is the owner of business premises situate in Accra. On 1 July 1975, he, by deed, demised part of the premises to the appellant-company (which I will hereafter call the company) for a term of five years certain with an option for renewal. The subject of the demise was described as a "four door store” in house No. C.89/2, Liberty Avenue, Adabraka. The lease reserved a "yearly rent of ¢1,440" payable quarterly in advance in the sum of ¢360.
The lease then contained the usual covenants which it is not necessary to quote except clause 4 (a), that being the clause which was admittedly breached to give rise to this action. That clause is couched in familiar language and is as follows:
"Provided always and it is hereby agreed and declared:
(a) That if the rent hereby reserved or any part thereof shall remain unpaid for 30 days after becoming due for payment and shall have been demanded by the landlord in writing or if the tenant shall fail to comply with any of the convenants herein contained on its part, the landlord will only in such a case have the right to re-enter the demised premises in the name of the whole and thereupon determine the tenancy hereby created but without prejudice to any right of action or remedy of the landlord in respect of any antecedent breach of any of the covenants by the tenant herein contained."
The company failed or neglected to pay rent for six quarters ending 31 December 1976. According to the respondent, although he made a written demand for this, the company made default. Accordingly, on 23 February 1977, the respondent issued a writ in the circuit court claiming “possession of all that four door store on the ground floor of the premises known as house No.134 (formerly C. 89/2), Liberty Avenue, Accra.”
The evidence shows that the letter by which the respondent demanded the payment of rent was dated 7 February 1977. When this was brought to the notice of one of the directors of the company, he sought to verify the claim. He was satisfied that owing to oversight, payment of the rent was not made. Accordingly, a cheque dated 23 February 1977, was issued in favour of the respondent for the sum of ¢3,240 ( three thousand two hundred and forty cedis). The rent then due and unpaid covered the period October 1975 to December 1976. The payment offered by the company to the respondent extended up to December 1977. The respondent declined to receive payment and relied on his right to re-enter the