PROTON INTERNATIONAL NETWORK vs KARE & KARE LTD
2016
HIGH COURT
GHANA
CORAM
- HIS LORDSHIP GEORGE K. KOOMSON ‘J’.
Areas of Law
- Contract Law
- Evidence Law
2016
HIGH COURT
GHANA
CORAM
AI Generated Summary
The plaintiff filed a suit against the defendant, alleging breach of a memorandum of understanding (MOU) in which the plaintiff was to secure an Airtime distributorship license from Airtel Ghana Ltd. for the defendant. The defendant failed to pay the agreed $75,000 sum. The defendant claimed that the MOU's terms were not met as expected. The court found that the failure to secure the license for the three Northern Regions constituted a breach by the plaintiff, thus rejecting the plaintiff's claim for relief and dismissing the case.
A summary of the facts giving rise to the present action is that the plaintiff and the defendant herein entered into a memorandum of understanding ( M. O. U ) on the 18th of March, 2014 in which the plaintiff was to provide consultancy services to the defendant for the latter to be granted Airtime distributorship licence from Airtel Ghana Ltd. It was further agreed that the Airtime distribution license will appoint the defendant an exclusive distributor for a period of two years (renewable subject to satisfactory performance). The parties further agreed that the plaintiff was to secure the license for the defendant before 1st April, 2014. In consideration of this the parties agreed that the defendant was to pay the sum of $75, 000. 00 as compensation to the plaintiff (but the payment was to be effected in Ghana Cedi). The parties further agreed that the said sum of money shall be paid by the defendant to the plaintiff immediately the contract for the distributorship of Airtel airtime is executed.
The 1st defendant was appointed a super distributor in April, 2014 to April 2016. The defendant failed to acknowledge the letter of appointment and also failed to pay the USD 75, 000. 00 to the plaintiff.
This has brought the parties to court with the plaintiff asking for the following reliefs:
1. The sum of USD 75, 000. 00 being the agreed sum to be paid immediately upon the receipt of signed contract by Airtel Ghana Ltd.
2. Interest on the said sum at the agreed Bank of Ghana rate from 9th July, 2014 to date of final payment.
3. Damages for breach of contract.
4. Costs.
It is noted that the 2nd defendant’s name was struck out as a party to the suit on the 10th of June, 2015. It is further noted that, although the defendant filed its witness statement, it failed to attend the pre-trial case management.
Defendant also failed to attend court to testify in the matter or to contest the trial despite being served with hearing notices.
The case of the plaintiff is that it entered into negotiations with the defendant through its chief Executive Officer Richard King Atikpo.
After series of discussions and negotiations, the plaintiff contends that a memorandum of understanding was agreed between the parties.
It is the case of the plaintiff that it succeeded in obtaining the distributorship license for the defendant as agreed between the parties in the MOU.
It is further the case of the plaintiff that having fulfilled its obligation under the MOU, the defen