TONY ANNIN-BOATENG v. REGIMANUEL GRAY LTD.
April 14, 2016
COURT OF APPEAL
GHANA
CORAM
- OFOE, J.A. (PRESIDING)
- ACQUAYE, J.A.
- WELBOURNE (MRS), J.A
Areas of Law
- Contract Law
April 14, 2016
COURT OF APPEAL
GHANA
CORAM
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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
AI Generated Summary
The Ghana Court of Appeal, per Justice Margaret Welbourne, dismissed an appeal arising from a dispute between a UK‑based Ghanaian couple and a Ghanaian real estate developer over a house to be constructed at East Airport, Accra. The couple contracted for a four‑bedroom home (RG‑5E), paid USD 100,000 toward the stipulated 40 percent deposit, and later accepted an extra plot and optional round columns. Amid delays, the Respondent announced price adjustments due to surging construction costs, eventually quoting USD 335,489.98. After visiting the site with employees Eugenia Ayi‑Bonte and Mr. Monney and seeing no construction, the Appellant met Administrative Director Mrs. Botwe, rejected the USD 62,742.48 increase, terminated, and sought a refund. The Court held the Sales Agreement was a construction contract, upheld clauses authorizing fluctuation‑based price adjustments and retention of 20 percent administrative charges upon resale, affirmed the High Court’s dismissal, and awarded costs to the Respondent.