TULLOW GHANA LIMITED v. SKYLIMIT STRUCTURE & ANOTHER
2018
COURT OF APPEAL
GHANA
CORAM
- F.G. KORBIEH J.A (PRESIDING)
- AGNES M.A. DORDZIE (MRS.) J.A
- I. O. TANKO AMADU J.A
Areas of Law
- Contract Law
- Commercial Law
- Civil Procedure
2018
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
On appeal from the High Court (Commercial Division) in Accra, a company that had tendered to provide crane and forklift services in Takoradi challenged the termination of a pre‑contract arrangement after extensive clarifications, inspections, and a meeting at which the contracting entity’s internal management decided in principle to award the full contract, subject to partner approval. The Court of Appeal, per I. O. Tanko Amadu JA, held that the tender process culminated in a pre‑contract and clear representations creating a legitimate expectation, and that interpreting the termination clause “for any other reason” to include technical non‑conformance would flout business common sense given prior agreements to allow two months post‑award for compliance. Promissory estoppel supported compensatory damages. The court struck noncompliant grounds of appeal, dismissed the appeal, and declined the respondent’s cross‑appeal to enhance damages, affirming GH₵10,000,000 in compensatory damages, USD 113,000 for certification costs, and GH₵80,000 costs.
TANKO AMADU J. A(
It also raises the issue about the philosophy, assessment and award of damages for breach of pre contract negotiations particularly where a claimant alleges that it has suffered loss as a result of the exercise of an election by the other contracting party to withdraw and refuse to commit itself to a formal contract.
Simply put therefore the crucial issue arising from this appeal is the determination of the degree of liability of a party who withdraws from an agreement to enter into a formal contract.
ii)An order directed at Defendant to refund to Plaintiff all expenses incurred by Plaintiff upon the legitimate expectation that Defendant would award to it the contract to provide crane and forklift services to Defendant at Takoradi.
At page 32 of the record, the pretrial judge adopted eight (8) of the issues set down by the parties but added two (2) omnibus issues of a general nature i. e. whether the(Plaintiff) Respondent herein is entitled to its claim and “any other issues arising from the pleadings”.
I award to the Plaintiff cost assessed at Gh₡80, 000.