TONY ANNIN-BOATENG v. REGIMANUEL GRAY LTD.
2016
COURT OF APPEAL
GHANA
CORAM
- OFOE, J.A. (PRESIDING)
- ACQUAYE, J.A.
- WELBOURNE (MRS), J.A
Areas of Law
- Contract Law
- Civil Procedure
2016
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
This case involves an appeal against a High Court judgment concerning a dispute over a housing contract. The Appellant, a Ghanaian residing in the UK, entered into an agreement with the Respondent to purchase a house in Ghana. The main issues were whether the contract was for construction or sale of immovable property, and whether the Respondent had the right to unilaterally increase the price. The Court of Appeal dismissed the appeal, holding that the contract was a construction contract and that the Respondent had the right to increase the price based on the contract terms. The court emphasized the importance of interpreting contracts based on the parties' intentions and the ordinary meaning of the words used. The appeal was dismissed, and the High Court's decision was affirmed, with costs awarded to the Respondent.
WELBOURNE (MRS), J.A.
This is an appeal against the judgment of the High Court (Commercial Division) dated 28th July 2011.
The parties will be known as Appellant and Respondent in this appeal.
The brief facts are that the Appellant and his wife are Ghanaians who reside in the UK. Desirous of resettling in Ghana after their retirement, they approached the Respondent in September 2007 and negotiated for the purchase of one of the Respondent’s housing units situated at East Airport, Accra.
The Appellant and his wife settled for a unit designated as RG-5E; 4 bedroom Detached Executive House on Plot No. 0601/98, East Airport at a Purchase price of USD$248,200.00. After duly executing an application form Exhibit A, they returned to the UK.
The Respondent then sent a Sales Agreement Form to the Appellant and his wife through their address in UK for acceptance.
The offer letter stated the provisional price of the house as USD$248,200.00 and designated the house as RG-5E 4 bedroom Detached Executive Estate at East Airport, Accra.
As part of the conditions for the allocation of plot, the Appellant was to pay 40% of the total purchase price either directly or by confirmation to that effect from the Respondent’s bankers in the UK.
The Appellant accepted the offer which was valid for thirty (30) days and paid the 40% of the purchase price– amounting to USD$100,000.00 although the exact amount of 40% of purchase was USD$99,280.00.
Later when Appellant and his wife visited the site, they discovered a small plot attached to the main plot. Respondent offered the additional plot to them at a price of USD$23,897.50.
In December, 2007, the Respondent sent an offer letter on the additional plot to the Appellant and this was accepted by the Appellant.
The total price therefore as at 11th December, 2007 stood at USD$272,092.00.
On 18th April, 2008, the Respondent wrote to the Appellant and assured him that construction work had commenced and was ongoing, however due to the substantial surge in the prices of construction material and other cost, the Defendant had been compelled to make adjustments to the price of the house. The extent of the adjustment was not stated in the letter nor attached as stated in the letter.
In July, 2008, the Appellant and his wife visited Ghana and visited the site to see how far the construction work had gone, they did so in the company of Eugenia Ayi-Bonte and Mr. Monney both employees of the Respondent Company.
To their dismay, and di