[1971]DLCA2113March 29, 1971Court of Appeal

FYNHOUT PRODUCTION LTD. vs. KWAYIE & ANOR.

The appellants, owners of a timber log production unit at Awaso, leased their business and assets, including a lorry (No. AS 5117), to the second defendant under a hirepurchase agreement dated 16 May 1961. During the agreement's currency, the first defendant, driving the lorry, negligently collided with a passenger lorry, injuring the respondent (an infant). The respondent sued for damages alleging negligence by the first defendant, servant or agent of the second and/or third defendant. The first defendant pleaded guilty to careless driving and causing harm. The main dispute was whether the appellants were vicariously liable for the negligence of the first defendant.

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The appellants (who were the third defendants at the trial) were the owners of a timber log production unit at Awaso. They let their entire production unit and business to the second defendant (who did not appeal) with an option to purchase under a hire-purchase agreement executed on 16 May 1961 (exhibit 1). Among the assets of the business let on hire to the second defendant was a lorry, No. AS 5117. On 7 January 1962 - during the currency of the said hire-purchase agreement-the said lorry was being driven by the first defendant (who did not appeal) when it collided with a passenger lorry on the highway. The respondent (an infant who was the first plaintiff at the trial), who was a passenger in the passenger lorry, sustained serious injuries, and through his father and next friend (the second plaintiff) he instituted this action against the defendants jointly and severally in the Sekondi High Court for damages “for injuries caused to him by the negligent driving of the first defenda.....