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
2018
COURT OF APPEAL
GHANA
CORAM
AI Generated Summary
The Court of Appeal dismissed the Appellant's appeal against the High Court judgment awarding damages to the Respondent. The court found that the Appellant had made representations to the Respondent that it would be awarded a contract for crane and forklift services, which the Respondent relied on to its detriment. The court held that the limitation of liability clause in the pre-contract did not preclude claims for general damages based on promissory estoppel. The court affirmed the Trial Court's award of damages, finding it had properly considered the Respondent's losses resulting from its reliance on the Appellant's representations. The court emphasized the importance of interpreting commercial contracts in a commercially sensible manner and upheld the principle that damages should put the injured party in the position they would have been in had the contract been performed.
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.