SEIDU ISSAH v. ALINCO OIL COMPANY LIMITED
2021
COURT OF APPEAL
GHANA
CORAM
- CECILIA H. SOWAH, J. A. (PRESIDING)
- ANTHONY OPPONG, J. A.
- ANGELINA MENSAH-HOMIAH, J. A.
Areas of Law
- Civil Procedure
- Contract Law
- Property and Real Estate Law
2021
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The Court of Appeal (per Angelina Mensah-Homiah, JA) dismissed Alinco Oil Limited19s appeal from the High Court, Koforidua. Issah Seidu, a fuel dealer operating a Nuaso filling station, had agreed with Alinco under exhibit C to sell Alinco19s products for a 20 pesewas-per-litre commission. Seidu claimed 892,255 litres were sold (commission GH2178,451), with GH22,200 already paid toward his Manya Krobo Rural Bank debt, leaving GH2176,251. Alinco argued fraud, mistake, and frustration, relying on an alleged purchase from Universal Oil19s Alhaji Lilo for GH230,000 and a police 1cadjudication1d. The Court rejected these, finding exhibit 2 fictitious and Universal Oil19s letter disclaiming ownership decisive, and concluded the station was operational, no misrepresentation occurred, and consideration existed on both sides. The Court affirmed the High Court19s judgment, declined to vary it to add interest due to Rule 15/32 requirements, and awarded costs of GH25,000.
MENSAH-HOMIAH, JA:
This is an appeal by the Defendant/Appellant (hereinafter called the Defendant) against the judgment of the High Court, Koforidua, dated 26th July, 2019. The Appellant complains against the whole judgment and the grounds of appeal are that:
a. The Judgment is against the weight of evidence on record.
b. The court misdirected itself on the law of contract where there is no consideration.
BRIEF FACTS
I will set out the facts which are relevant to this appeal. The Plaintiff/Respondent (hereinafter called the Plaintiff) who describes himself as a fuel dealer and owner of a filling station at Kpong- Nuaso, sued the Defendant company which carries on the business of sale and distribution of fuel products, for three reliefs, namely:
i. The payment of the sum of GH₵178,451.00 which is due and owing by the Defendant Company as at 25th July, 2011.
ii. An order abrogating the operational agreement existing between the Plaintiff and Defendant.
iii. Perpetual Injunction restraining the Defendant, its agents, assigns form having anything to do with Plaintiff’s filling station at Nuaso.
Per the Plaintiff’s pleadings, he entered into a fuel dealership agreement with Universal Oil Company Limited in respect of a filing station at Nuaso, pursuant to an earlier agreement with the original lessee who constructed the filling station. One Alhaji Mohammed Mutarli was described as the original lessee who entered into the first operational agreement with Plaintiff to manage/and or operate the filling station on commission basis. Sometime in the year 2009, Universal Oil was unable to lift products for its customers due to administrative problems. With permission from Universal Oil, Plaintiff offered this filling station to Defendant to be operated on Commission basis and an agreement was reached.
By the said agreement, Defendant was to pay Plaintiff a commission of twenty (20) pesewas per every litre of fuel product sold by the Defendant. Through this arrangement, Plaintiff alleged that he sold a total of 892, 255 litres of ‘Diesel’ and ‘Super’ between 1st February, 2010 and 25th July, 2011 and he was to be paid the sum of GH₵ 178,451.00, as detailed in his statement of claim.
The Defendant refused to honour its obligations arising from this contract and alleged that the Company entered into the contract under a mistake of fact. Its version was that, after executing the agreement with Plaintiff, Universal Oil Company Limited claimed ownership of the St