LEGACY FINANCIAL SERVICES LTD VS ABMAAD COMPANY LTD

By a Writ dated the 20th of September, 2021, the Plaintiff, a Ghanaian registered limited liability company that offers asset management, private wealth, investment advisory and research services to cooperate and private clients sought inter alia the following reliefs against the Defendant, also a Ghanaian registered company;

a) An order directing the Defendant to pay the total outstanding loan amount of Two Million Seven Hundred and Seventy-Seven Thousand Six Hundred Ghana Cedis (GH¢ 2,777,600.00)

b) Interest on the sum of Two Million Seven Hundred and Seventy-Seven Thousand Six Hundred Ghana Cedis (GH¢ 2,777,600.00) at the agreed rate of 6% per month from the 14th of January, 2020 to date of final payment.

c) General damages for breach of contract.

d) Costs

e) Any further or other order(s) as this Court may deem fit.

The record shows that the Defendant was duly served with Plaintiff’s Writ by post on the 8th of July, 2022.

Following the failure of Defendant to enter appearance to the Plaintiff’s Writ, this Court on the 1st of December, 2022 entered Judgement in Default of Appearance against the Defendant in respect of reliefs a and b.

In respect of relief (c), Interlocutory Judgement was entered in favour of the Plaintiff in accordance with Order 10 Rules 2 and 5 of Civil Procedure Rules, 2004 (CI 47) and a date fixed for the assessment of damages in accordance with Order 40 of Civil Procedure Rules, 2004 (CI 47).

It is trite learning that general damages will normally be inferred once a breach of contract has been established. This will mean that unlike situations where a claim is made for special damages, strict proof may not be required in a claim for general damages.

This fact notwithstanding, there is little doubt that calling evidence even in a claim for general damages does serve as a useful guide for determining what will be a fair and reasonable amount to award. See the case of TEMA OIL REFINERY v AFRICA AUTOMOBILE LTD [2011] 2SCGLR, 907 @ 923 -935.

Paa Kwesi Afful, the Head of Corporate Finance of the Plaintiff Company testified on its behalf. His evidence was that in or about the 8th of August, 2016 the Parties entered into a contract evidenced by a Commercial Paper Term Sheet which was tendered as Exhibit A.

Pursuant to this contract, Plaintiff agreed to advance to Defendant an amount of Five Hundred Thousand Ghana Cedis (GH¢ 500, 000.00) as working capital for its Business. It was agreed that the Defendant will pay back this am