Addy Vrs Sarfo and Another [2023] GHAHC 48 (18 April 2023)

Addy Vrs Sarfo and Another [2023] GHAHC 48 (18 April 2023)

The Defendants jointly borrowed GH¢50,000.00 from the Plaintiff, agreed to pay GH¢50,000.00 interest in four months, and provided collateral. Only GH¢5,000.00 was repaid. The 2nd Defendant remains liable as the Memorandum of Understanding does not bind the Plaintiff. The agreed interest is unconscionable; instead, interest at the current bank rate is ordered.

Citation
[2023] GHAHC 48
Parties
Plaintiff: James Nii Addy; 1st Defendant: William Sarfo; 2nd Defendant: George Berko
Court
High Court
Jurisdiction
Ghana
Judgment Date
18 April 2023
Procedural Posture
Civil / Judgment
Outcome
Judgment for Plaintiff against both Defendants jointly and severally, with different sums awarded.
Legal Topics
Loan Agreement, Breach of Contract, Collateral Security, Interest Rate, Joint and Several Liability
Source Language
English
Contract Law Loan Agreement Breach of Contract Collateral Security Interest Rate Joint and Several Liability

Case Brief

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Parties

James Nii Addy

Plaintiff

William Sarfo

1st Defendant

George Berko

2nd Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the Plaintiff loaned GH¢50,000.00 to the Defendants on 12th November 2017
  2. 2 Whether the Defendants have repaid the Plaintiff the loan of GH¢50,000.00
  3. 3 Whether the 2nd Defendant relinquished his land and building documents as security for the loan

Ratio Decidendi

The Defendants jointly borrowed GH¢50,000.00 from the Plaintiff, agreed to pay GH¢50,000.00 interest in four months, and provided collateral. Only GH¢5,000.00 was repaid. The 2nd Defendant remains liable as the Memorandum of Understanding does not bind the Plaintiff. The agreed interest is unconscionable; instead, interest at the current bank rate is ordered.

Court Disposition

Judgment for Plaintiff against both Defendants jointly and severally, with different sums awarded.

Orders

  • 2nd Defendant to pay GH¢45,000.00 to Plaintiff
  • Interest on GH¢50,000.00 at current bank rate from 24th March 2018 to date of judgment