ADDISON vs. A/S NORWAY CEMENT EXPORT LTD.

Following the 1966 coup d'etat, the Ghana Government reorganized the Ghana Cement Works, incorporating Ghana Cement Works Ltd. Both parties sought joint financial participation with the government. The plaintiff was requested by the defendants to negotiate two agreements: (a) the defendants' financial participation in the new company, and (b) an exclusive supply contract for clinker to Ghana Cement Works Ltd. The negotiations succeeded, and agreements were executed in 1967. An implied term existed that the plaintiff would be remunerated for his services, leading to an oral agreement in December 1968 involving shares and options. Later, in July 1969, an oral agreement was alleged for payment of N¢80,000 commission for negotiating the clinker supply contract. Disputes arose over the nature and terms of this remuneration, leading to litigation.

After the 1966 coup d’etat, the Ghana Government embarked on a reorganisation of the Ghana Cement Works at Tema and Takoradi, and a new company, Ghana Cement Works Ltd. was incorporated to take over the old cement works at the two ports. Advertisements were published inviting private entrepreneurs to enter into joint financial participation with the government in the proposed venture. Both parties to this suit were interested in joint participation with the government in the new company. In the statement of claim, the plaintiff-appellant (hereinafter called simply the plaintiff) disclosed that he was requested by the defendants - respondents (hereinafter referred to simply as the defendants) to negotiate with the Ghana Government for (a) the financial participation of the defendants in the new company and (b) the contract for the exclusive supply by the defendants to Ghana Cement Works Ltd. of all the latter’s clinker supply requirements for a period of two years. Both negotiati...