WILLIAM FUGAR v. SOFT SHEEN CARSON
2012
HIGH COURT
GHANA
CORAM
- LORDSHIP THE HONOURABLE MR. JUSTICE K. A. OFORI ATTA, J
Areas of Law
- Contract Law
- Property and Real Estate Law
2012
HIGH COURT
GHANA
CORAM
AI Generated Summary
The case involved a dispute over the termination of a lease agreement between the Plaintiff (landlord) and Defendant Company (tenant) for a three-bedroom apartment in Accra. The lease term was from April 1, 2008, to March 31, 2011, but the Defendant sought to terminate the lease early by sending a notice on February 12, 2010, and vacating the premises. The Plaintiff argued the termination notice was not properly served according to the lease agreement's requirements and claimed overdue rent and damages for breach of contract. The court held that the mode of service of the termination notice was incompatible with the agreed requirements, finding the Defendant in breach of the agreement. However, the court also noted the Plaintiff's obligation to mitigate damages and awarded partial damages for the period the property remained unlet.
The main issue in this case is whether notice given by a tenant to a break clause in a lease was effectively served and thus capable of terminating the lease.
The premises in question were a three-bedroom unfurnished apartment, Flat No. 9 in the complex known as Hansen Court situate at No. 58 Switchback Road, Cantonments Residential Area, in the Accra Metropolis. The lease was dated 29th day of February 2008 for a term of three years from 1st April 2008 to 31st March 2011.
The Plaintiff was the landlord and the Defendant Company was the tenant. The relevant clause was CI 5.2,3 which provided as follows:
“2. This agreement shall be determined by either party per written notice of three (3) months of such intention and the Agreement shall cease and be thus determined but without prejudice to any accrued right of action if any in respect of any antecedent that either party may have against the other.
3. Any notice required to be served hereunder shall sufficiently be served on the tenant if left at the premises hereby let and on the Landlord if forwarded to Post Office Box 6274 Accra North by registered post or delivered personally to his current place of abode. A notice sent by post shall be deemed to be given when in due course it would be delivered to the address to which it is sent.”
Clause 5.2 thus gave the tenant the opportunity to bring the lease to an end.
Further to the lease agreement which was tendered in these proceedings by the Plaintiff as Exhibit A, the Defendant went into occupation of the premises. On 12th February 2010, the tenant wrote terminating the lease. To better appreciate the issues in this case the letter is reproduced:
“12th February, 2010
ATTN: The Landlord
Hanson Court Residence Association
Cantonment, Accra
Dear Sir/Madam,
NOTICE OF TERMINATION OF TENANCY AGREEMENT – FLAT
This is to kindly inform you that we shall not be renewing our tenancy agreement with regards to named flat above this year.
Counting on your usual cooperation
Please do not hesitate to contact the undersigned for further details.
Signed
Patience Aduakwa
Legal/HR Manager.”
Subsequent to the letter tendered in evidence as Exhibit ‘C’, the Defendant vacated the premises.
It is the Plaintiff’s case that the letter did not get to him. That in any case it did not comply with Clause 5.3 of the lease agreement. Further, he claims that Defendant vacated the property without his prior consent or notice to him. He also averred that the Defendant vaca