Andreas Bschor Gmbh & Co Kg Vrs Birim Wood Complex Ltd and Another [2016] GHASC 68 (22 March 2016)

Andreas Bschor Gmbh & Co Kg Vrs Birim Wood Complex Ltd and Another [2016] GHASC 68 (22 March 2016)

Plaintiff sold the saw-mill machinery in the ordinary course of business, triggering the implied condition of fitness for purpose under Section 13(1)(b) of Act 137. The machinery supplied was not fit for purpose as it broke down within days, breaching the implied condition. However, defendants failed to strictly prove special damages but were entitled to general damages. Plaintiff was entitled to the outstanding contract sum after deductions for payments made.

Citation
[2016] GHASC 68
Parties
Plaintiff/appellant/respondent: Andreas Bschor GmbH & Co. KG; Defendant/respondent/appellant: Birim Wood Complex Ltd; Defendant/appellant: Birim Timbers Ltd
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
22 March 2016
Procedural Posture
Civil Appeal / Final Appellate Judgment
Outcome
appeal allowed in part; cross-appeal allowed in part
Legal Topics
Sale of Goods, Implied Terms, Fitness for Purpose, Damages, Burden of Proof
Source Language
English
Contract Law Commercial Law Sale of Goods Implied Terms Fitness for Purpose Damages Burden of Proof

Case Brief

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Parties

Andreas Bschor GmbH & Co. KG

Plaintiff/appellant/respondent

Birim Wood Complex Ltd

Defendant/respondent/appellant

Birim Timbers Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Final Appellate Judgment

Legal Issues

  1. 1 Whether the plaintiff delivered all machinery as per contract
  2. 2 Whether the machinery supplied was fit for the purpose of saw milling under the Sale of Goods Act, 1962 (Act 137)
  3. 3 Whether the defendants proved their claim for damages

Ratio Decidendi

Plaintiff sold the saw-mill machinery in the ordinary course of business, triggering the implied condition of fitness for purpose under Section 13(1)(b) of Act 137. The machinery supplied was not fit for purpose as it broke down within days, breaching the implied condition. However, defendants failed to strictly prove special damages but were entitled to general damages. Plaintiff was entitled to the outstanding contract sum after deductions for payments made.

Court Disposition

appeal allowed in part; cross-appeal allowed in part

Orders

  • Plaintiff awarded DM844,127.66 as balance of contract sum
  • Defendants awarded DM250,000 as general damages for breach of implied condition of fitness for purpose