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NARROW FISHING & TRADING COMPANY v. JAMES RICHARD QUANSAH & ORS

July 19, 2006

COURT OF APPEAL

GHANA

CORAM

  • OWUSU ANSAH, JA [PRESIDING]
  • OSEI, JA
  • QUAYE, JA

Areas of Law

  • Banking and Finance Law
  • Commercial Law
  • Contract Law
  • Civil Procedure

AI Generated Summary

This appeal by National Investment Bank Limited, the third defendant at trial, arises from the High Court’s judgment in favour of the plaintiff (now respondent) concerning a failed fish importation financed through an irrevocable letter of credit. After the respondent deposited about ¢64 million for 1,000 MT from World Scope Limited, arrangements shifted to Hyundai International Trading Corporation in South Africa. The issuing bank appointed Midland Bank as advising bank and processed documents. Hyundai later indicated only 90 MT would ship, triggering respondent’s demand to cancel the LC and refund US$50,000, consistent with customs rules requiring a minimum of 500 MT. The bank and advising bank identified multiple discrepancies, yet payment was ultimately made and documents accepted after the LC’s expiry. Applying UCP 500’s compliance requirements, agency principles, and appellate standards, the Court of Appeal held the issuing bank breached its duty, rejected reliance on Article 18 disclaimers, and affirmed the trial court’s awards of interest and costs, dismissing the appeal.

JUDGMENT