OLAM (GHANA) LIMITED VS. ALEX BONNEY

The Plaintiff on 10th January, 2014 sued the Defendant for the following reliefs as endorsed on the writ of Summons: a. The payment of the sum of GH¢196, 434. 61 being the outstanding balance owed the Plaintiff for the goods purchased as at 7th November, 2013. b. Interest on the above sum of GH¢196, 434. 61 at the prevailing bank rate from 7th November, 2013 till date of final payment.

c. Cost. d. Any other remedy as the Court may consider fit to order.

At the end of the pre-trial, the parties could not settle the matter and same was referred for trial.

The issues set down for trial were: 1. Whether or not the Plaintiff supplied goods to the Defendant to the total sum of GH¢231, 434. 61. 2. Whether or not all the 1, 200 bags of flour supplied to the Defendant was of poor quality and therefore unwholesome for the purpose of baking.

3. Whether or not the Defendant informed the Plaintiff that it would be costly and impossible to retrieve all the 1, 200 bags of flour from its Customers.

4. Whether or not the Defendant made demands to the Plaintiff for replacement of all the 1, 200 bags of flour and if so whether Plaintiff failed or refused to respond to the Defendant’s demand.

5. Whether or not Plaintiff through its Sales Manager and Accountant agreed that the Defendant should bear half of the cost of the 1, 200 bags of flour alleged to be unwholesome by the Defendant.

6. Whether or not the Defendant owed the Plaintiff other sums before the Plaintiff supplied the Defendant with the 1, 200 bags of flour.

7. Whether or not the Plaintiff is entitled to its claim.

From the Pleadings, the Plaintiff is a Limited liability which deals in products including flour and Defendant is a customer/distributor of Plaintiff.

In the course of their business dealings, Plaintiff granted a credit limit of US$100, 000. 00 to the Defendant and supplied flour thereon on a revolving credit basis.

To Defendant, that translated into a 1000 bags of flour and same was to be paid within 14 days plus a week.

According to Plaintiff, Defendant owed them an amount of GHC231, 434. 61 as a result of the supply of the flour on the revolving credit basis and Defendant issued some post-dated cheques to the Plaintiff, some of which were honoured and others were not so honoured, reducing the amount owed to GHC196, 434. 61. That Defendant upon persistent demand had failed to repay the amount outstanding.

From the Reply of Plaintiff, Defendant drew the attention of the Plaintiff’s Qua