SETH MENSAH VS RHEMA MOTORS & ERATRUCK
January 13, 2023
HIGH COURT
GHANA
CORAM
- HER LADYSHIP JUSTICE AKUA SARPOMAA AMOAH (MRS.)
Areas of Law
- Contract Law
- Commercial Law
January 13, 2023
HIGH COURT
GHANA
CORAM
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INTRODUCTION
On the 10th of November, 2017, the Plaintiff who describes himself as a businessman resident in Accra, caused a writ to be issued against the Defendants herein seeking the following reliefs from this Court.
a) Recovery of possession of Vehicles No GM 4456 and GM 4457
b) Damages for loss of use
c) Costs
Plaintiff’s case is that the 1st Defendant is a Ghanaian registered company which deals in the sale and servicing of trucks including Hohan Sino Trucks. The 2nd Defendant is also described as a Ghanaian registered company and the Principal of the 1st Defendant.
According to the Plaintiff, on the 10th of October, 2014, he purchased two 6 X 4 Honan Sino Trucks for a total amount of Two Hundred and Sixteen Thousand, Four Hundred and Thirty-Six United States Dollars (USD$ 216,436.00.) from the 1st Defendant under a Conditional Sale Agreement tendered in evidence as Exhibit A.
Pursuant to the terms of Exhibit A, Plaintiff made an initial payment of Forty-Two Thousand, Four Hundred and Twenty-Six United States Dollars (USD$ 42, 426.00.), as part payment for the said two vehicles. The said vehicles were however to remain in the name of the 1st Defendant per the terms of Exhibit A until Plaintiff had paid fully for same.
According to Plaintiff, after taking delivery of the vehicles, he continued to make payments as agreed. However, the 2nd Defendant, even though not a party to the agreement repossessed both vehicles from him on the 12th day of October, 2017.
Plaintiff says that the 2nd Defendant was aware of his beneficial interest in the vehicles as a result of Exhibit A as 2nd Defendant had, through one Mr. Tang Fusang, its Managing Director, been offering Plaintiff advice on the maintenance of the vehicles.
It is the case of Plaintiff that he had made payments amounting to about 93% of the total purchase price at the time the said vehicles were repossessed. It is for this reason that he is before this Court seeking the reliefs endorsed on his Writ of Summons.
1ST DEFENDANT’S CASE
1st Defendant admits selling the trucks in question to Plaintiff on the terms contained in Exhibit A. It says however that the said vehicles remained in the name of the 2nd Defendant even though it was agreed with the Plaintiff that the vehicles will be registered in its name (1st Defendant). 1st Defendant further admits receiving an amount of Forty-Two Thousand, Four Hundred and Twenty-Six United States Dollars (USD$ 42,426.00.) from Plaintiff as an initial depo
AI Generated Summary
In this High Court judgment, Justice Akua Sarpomaa Amoah resolved a dispute over two Hohan Sino trucks supplied through a conditional sale agreement (Exhibit A) between Rhema Motors (1st Defendant) and the Plaintiff, a businessman in Accra. The Plaintiff paid USD 42,426 upfront and continued installments toward a total price of USD 216,436, allegedly reaching 93% before Eratruck (2nd Defendant), the trucks’ owner and supplier to Rhema Motors, repossessed them on 12 October 2017. The court held that Exhibit A was a valid conditional sale; agency between Rhema Motors and Eratruck was unproven, so there was no privity for claims against Eratruck. Nonetheless, because Eratruck authorized Rhema Motors to sell, the Plaintiff acquired good title subject to conditions, rendering the nemo dat rule inapplicable. As the trucks were “protected goods” under Act 292, repossession without an action against the buyer contravened statute. Exhibit A was deemed terminated, and Rhema Motors was ordered to refund USD 202,436 plus interest, while the Plaintiff’s claim against Eratruck was dismissed; costs were awarded.