FOOD SPECIALITIES GHANA LTD. vs. TECHNICAS DE MULTICONSTRUCTION S.A.

The respondents, a Spanish company registered in Ghana as an external company, entered into a lease agreement prepared by the appellants’ solicitors in respect of premises at Plot No. 14, Patrice Lumumba Road, Airport Residential Area, Accra. In the body of the lease, the respondents’ name was wrongly stated, thereby misdescribing them as a different entity. Their representative nevertheless signed on their behalf under the company’s correct stamp. The respondents took possession for an eight-year term and paid rent advances acknowledged by the appellants. With the appellants’ consent, they also carried out substantial renovations and structural improvements to the premises at great cost. After about two and a half years, the appellants sought to capitalize on the misdescription by bringing an action to set aside the lease and recover possession. Following a ruling in that earlier suit, the respondents commenced a fresh action for rectification of the lease and sought an interim injunction to restrain interference with their possession pending trial. The High Court granted the injunction, and the appellants appealed. Portion in judgment pointing to this: “The plaintiff-respondents... had sued the defendant-appellants... for rectification of a lease agreement dated 13 September 1982... in respect of premises at Plot No.14, Patrice Lumumba Road, Airport Residential Area, Accra.” Also: “The respondents... took possession of the premises for a term of eight years...” Also: “Exhibit JT 9 showed that the respondents... sent a cheque for ¢60,000... as rent advance... The appellants acknowledged receipt...” And: “those ‘structural transformation’ and ‘renovations’ cost the respondents ¢4,487,988...”