GH - MICHELETTI & CO v. DANIEL OFORI

DORDZIE, J.A.:

The action leading to this appeal was commenced in the High Court (Commercial Division) Accra by Daniel Ofori the respondent herein. By the averments in his statement of claim, he owns a piece of land at Shiashi, a suburb of Accra which he intended to develop into a three storey building.

The appellant, Micheletti & Co is a civil engineering and building company, he therefore approached the said company and one Ernesto Taricone for their services. The appellant and Taricone advised him to construct a nine storey instead of three because a nine storey would be more profitable. He expressed his inability to accept their advice because he did not have adequate resources for a nine storey building. The appellant and Taricone then proposed to partner with him to build the nine storey facility; which proposal he accepted.

As a commitment to the proposed joint project, he, in September 2008advanced a sum of USD265,000.00 to the appellant subject to agreement on the specific details of the contract; but before a formal contract could be signed Taricone pulled out of the partnership.

Subsequently the appellant presented a draft contract which he approved, and they were ready to execute same in about March 2011; however in April 2011 the appellant wrote to him raising the contract price in the proposed agreement fromUSD4,490,000.00 to USD5, 060,848.84.

The parties failed to agree on the change in the contract price therefore the agreement was never executed and the project was abandoned.

The respondent further averred that he demanded a refund of the initial deposit of USD265, 000.00 he made. The appellant then sent him a bill of USD496,000.00 claiming he spent the said amount on the project and demanded payment from the respondent. It is the respondent’s contention that though the parties agreed in principle to execute the project, they had not executed any formal contract, their discussions were subject to the execution of a formal contract.

In the action in the High Court therefore, the respondent was claiming a refund of the USD265, 000 he paid to the appellant plus interest from 3rd October 2011 till the day of final payment.

The appellant herein who was the defendant in the High Court entered appearance but failed to file a statement of defence within the statutory period. On 5th December 2012 the court below gave judgment in default of defence in favour of the respondent on his claims as endorsed on the writ of summons.

On the 24th of

DORDZIE, J.A.:

The parties failed to agree on the change in the contract price therefore the agreement was never executed and the project was abandoned.

In the action in the High Court therefore, the respondent was claiming a refund of the USD265, 000 he paid to the appellant plus interest from 3rd October 2011 till the day of final payment.

On the 24th of

MICHELETTI & CO v. DANIEL OFORI

Areas of Law

JUDGMENT