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OLATIBOYE v. CAPTAN

February 12, 1968

HIGH COURT

GHANA

CORAM

  • AMISSAH J.A

Areas of Law

  • Contract Law
  • Civil Procedure
  • Commercial Law

AI Generated Summary

In a dispute over diamond dealings, a seller seeks to recover N¢14,250.00 from an alleged buyer, asserting the diamonds were sold and payment withheld. The buyer, represented by Mr. Adjetey, raised a preliminary objection contending any contract would be unenforceable because the Diamond Mining Industry Protection Ordinance, Cap. 152, forbids sales without licence; the seller’s pleaded diamond digging licence had expired and no disposal licence was pleaded. The seller’s counsel, Mr. Armah, argued the objection was premature and that statutory penalties do not necessarily render contracts unenforceable. Analyzing the ordinance’s objective, detailed licensing procedure, and specimen licences issued free, the court concluded the statute is regulatory and prohibits unauthorized sales, so contracts made in contravention would be unenforceable. However, because the pleadings did not establish whether a disposal licence existed, the court found the issue required evidence and overruled the preliminary objection, allowing the action to proceed.

JUDGMENT