Tema Oil Refinery Vrs African Automobile Ltd [2010] GHACA 1 (11 March 2010)

Tema Oil Refinery Vrs African Automobile Ltd [2010] GHACA 1 (11 March 2010)

There was no consensus between the parties to vary or substitute the original contract except for the specifications, and the appellant's refusal to accept deliveries was unjustified. The respondent was entitled to damages for breach of contract and outstanding payments, but special damages and certain costs awarded by the trial court were not justified or proven and were set aside.

Citation
[2010] GHACA 1
Parties
Defendant/appellant: Tema Oil Refinery; Plaintiff/respondent: African Automobile Ltd
Court
Court of Appeal
Jurisdiction
Ghana
Judgment Date
11 March 2010
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
Appeal dismissed subject to variation of damages and costs
Legal Topics
Breach of Contract, Variation of Contract, Damages, Specific Performance, Costs
Source Language
English
Contract Law Commercial Law Breach of Contract Variation of Contract Damages Specific Performance Costs

Case Brief

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Parties

Tema Oil Refinery

Defendant/appellant

African Automobile Ltd

Plaintiff/respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether the original contract between the parties was varied or substituted by subsequent meetings and correspondence
  2. 2 Whether the respondent was entitled to damages for breach of contract
  3. 3 Whether the reliefs granted by the trial court were warranted in law

Ratio Decidendi

There was no consensus between the parties to vary or substitute the original contract except for the specifications, and the appellant's refusal to accept deliveries was unjustified. The respondent was entitled to damages for breach of contract and outstanding payments, but special damages and certain costs awarded by the trial court were not justified or proven and were set aside.

Court Disposition

Appeal dismissed subject to variation of damages and costs

Orders

  • Award of €71,394 as compensation set aside and replaced with an order for appellant to take delivery of 146,000 litres at contract price with interest from March 2006 to payment
  • Appellant to take delivery of remaining 108,000 litres at contract price with interest from March 2006 to payment