KOMMANDITGESELLSCHAFTMTI-VERTREIBSGESELLSCHAFT MBH & CO. (KGMTI). vs SERVISTAR MINWAX W.A LTD
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP, ERIC K. BAFFOUR, ESQ., JUSTICE OF THE HIGH COURT
Areas of Law
- Contract Law
- Commercial Law
- International Trade Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
This case involves a dispute over an international sale of goods contract on CIF terms between a German seller and a Ghanaian buyer. The court found that the contract was indeed on CIF terms and that the seller fulfilled its obligations by delivering shipping documents to the buyer's nominated bank. The buyer failed to obtain the documents due to its inability to provide a bank guarantee. The court rejected the buyer's allegations of fraud as unproven. The buyer was held liable for the value of the bill of exchange, the remaining balance of the consignment value, demurrage charges, and container recovery costs. The case illustrates key principles of CIF contracts, including the seller's obligation to tender shipping documents, the effect of nominating an agent to receive documents, and the buyer's duty to pay upon receipt of conforming documents.
Plaintiff, a company registered under the laws of the Republic of Germany, per the endorsement on its amended writ of 12/02/15 claims the following reliefs:
a. Recovery of the value of US$276, 465. 00 on a bill of exchange dated 13th March, 2014 drawn on the Defendant by the Plaintiff and accepted by the Defendant.
b. Recovery of the remainder of the value of US$443, 614. 50 (after considering relief A above) being the total value of the consignment of frozen meat supplied on C. I. F terms by the Plaintiff to the Defendant, less the amount of US$100, 200. 00 realised on the resale of part to a third party.
c. Interest at the prevailing commercial lending rate from the 15th May, 2014 till the date of final payment on the amounts in Reliefs A and B.
d. Recovery of the amount of US$40, 497. 50 being charges incurred in recovering possession of containers marked as MWSU9098805, MNBU9007695, and MWCU6663794.
e. Recovery of the amount of US$44, 000. 00 being demurrage charges charged against the Plaintiff to date.
f. An order directed at the Defendant to be liable for all further charges to be levied against the Plaintiff in respect of the transaction in issue, and g. Costs, inclusive of the cost of litigation and lawyer’s commission
PLAINTIFF’S CASE
Plaintiff has provided the basis for his claim in the Statement of Claim that accompanied the amended writ on 12/2/15. Plaintiff avers that between 20th November, 2013 and 1st February, 2014 the Plaintiff and the Defendant contracted for the supply of frozen meat products for the value of US$443, 614. 50. Plaintiff claims that it performed its obligation under the contracts and duly delivered the aforementioned goods to the port of Tema-Ghana.
Plaintiff states that on 13th March, 2013 upon agreement with the Defendant, it drew on the Defendant in favor of the Plaintiff a bill of exchange for the amount of US$276, 465. 00 to be payable to the Plaintiff at Fidelity Bank Limited, Ridge Towers, Accra.
The bill of exchange so drawn covered seven (7) out of eleven(11) invoices and was due for payment on the 14th April, 2014. The Plaintiff says that the defendant accepted the bill of exchange and indicated same by its official stamp and signature of the authorized officer.
Plaintiff further avers that the defendant and its Bank- Fidelity Bank requested an extension of the due date for a further thirty (30) days.
Plaintiff by an email accepted to extend the due date from 14th April, 2014 to 15th May 2014 and req