HUNGAROTEX FOREIGN TRADING CO. vs. BOATENG

In 1979, the defendant, a Ghanaian national, contracted with the plaintiffs, a Hungarian state corporation, for textile fabrics worth US$110,000 on 180 days' credit. The defendant accepted the goods, made a partial payment of US$23,750, and issued three cheques for the balance of US$86,250, which were dishonoured. The plaintiffs pursued the defendant in Ghana after failing to recover from English guarantors. An agreement was made for payment by instalments, but the defendant defaulted and later submitted to judgment for the amount in cedis at the prevailing exchange rate. Disputes arose over the applicable exchange rate for payment, with the defendant seeking to pay at the rate prevailing at judgment date, and the plaintiffs insisting on the rate prevailing at payment date. The defendant delayed payments, filed multiple motions, and the exchange rate depreciated significantly during the proceedings.

JUDGMENT OF AMUA-SEKYI J.A. Some time in 1979 the defendant, a Ghanaian national, entered into a contract in Hungary with the plaintiffs, a state corporation of the government of Hungary, for the supply of textile fabrics valued at US $110,000 under 180 days’ credit terms. The textile fabrics were duly supplied to the defendant who accepted same. He made a part-payment of US $23,750 and issued three cheques for the balance of $86,250. The cheques having been dishonoured by the foreign bankers of the defendant, the plaintiffs fell on his English guarantors, Messrs Bharwaneys Ltd., who turned out to be worth nothing. They then approached the defendant in Ghana for their money. He asked for accommodation. The plaintiffs agreed, and on 9 August 1982 entered into an agreement with him for the payment of the balance by monthly instalments over a period of eleven months. Needless to say, the defendant did not pay a single cent. Solicitors were instructed to demand the payment of the debt.....