Environmental Development Group Limited Vrs Provident Insurance Co. Ltd. [2020] GHASC 100 (18 March 2020)

Environmental Development Group Limited Vrs Provident Insurance Co. Ltd. [2020] GHASC 100 (18 March 2020)

The 3rd defendant's failure to grant a reasonable extension of time as required by the contract was a fundamental breach, entitling the plaintiff to treat the contract as discharged and claim general damages. The plaintiff failed to strictly prove special damages. The 1st defendant is not liable on the bonds as the conditions for payment were not met. The 3rd defendant's counterclaim fails as it repudiated the contract and cannot seek remedies under it.

Citation
Environmental Development Group Limited Vrs Provident Insurance Co. Ltd. [2020] GHASC 100 (18 March 2020)
Parties
Plaintiff/respondent/respondent: Environmental Development Group Limited; 1st Defendant/respondent/respondent: Provident Insurance Co. Ltd.; 2nd Defendant: Attorney General; 3rd Defendant/appellant/appellant: Ghana Education Trust Fund
Court
ghasc
Jurisdiction
Ghana
Judgment Date
18 March 2020
Procedural Posture
Civil Appeal / Final Appellate (supreme Court)
Outcome
Appeal allowed in part and dismissed in part. Judgments of High Court and Court of Appeal set aside. New orders made.
Legal Topics
Breach of Contract, Extension of Time, Liquidated Damages, Quantum Meruit, Special Damages, Counterclaim, Performance Bond, Advance Payment Guarantee, Frustration of Contract
Source Language
eng
Contract Law Construction Law Breach of Contract Extension of Time Liquidated Damages Quantum Meruit Special Damages Counterclaim +3 more

Case Brief

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Parties

Environmental Development Group Limited

Plaintiff/respondent/respondent

Provident Insurance Co. Ltd.

1st Defendant/respondent/respondent

Attorney General

2nd Defendant

Ghana Education Trust Fund

3rd Defendant/appellant/appellant

Procedural Posture

Civil Appeal / Final Appellate (supreme Court)

Legal Issues

  1. 1 Whether the termination of the contract by the 3rd defendant was lawful
  2. 2 Whether the failure to extend the contract time was a fundamental breach
  3. 3 Whether the plaintiff was entitled to special and general damages

Ratio Decidendi

The 3rd defendant's failure to grant a reasonable extension of time as required by the contract was a fundamental breach, entitling the plaintiff to treat the contract as discharged and claim general damages. The plaintiff failed to strictly prove special damages. The 1st defendant is not liable on the bonds as the conditions for payment were not met. The 3rd defendant's counterclaim fails as it repudiated the contract and cannot seek remedies under it.

Court Disposition

Appeal allowed in part and dismissed in part. Judgments of High Court and Court of Appeal set aside. New orders made.

Orders

  • Counterclaim of 3rd defendant dismissed.
  • 1st defendant perpetually restrained from paying on the guarantee bonds.