[1989]DLHC2056 • November 24, 1989 • High Court
QUARTEY vs. ENTERTAINMENT & TOURIST DEVELOPMENT CO. LTD. AND OTHERS
The plaintiff owned land with buildings at Osu and leased it to the fourth defendant in 1974. In 1983, a new lease (Exhibit B) was executed for 15 years with an option to renew, containing a clause prohibiting subletting, mortgaging, or assignment without the lessor's written consent. The plaintiff consented to the fourth defendant subletting to the third defendant (proprietor of Pearl of the East Restaurant). The third defendant purportedly transferred interests in two companies (Moustache Disco Ltd. and Studio All That Jazz) to the first defendant without the plaintiff's consent. The plaintiff challenged the validity of these transfers and the subleases, alleging breaches of the lease covenants.
read moreJUDGMENT OF BROBBEY J. The plaintiff is the owner of a piece of land with completed buildings thereon situated at Osu. In 1974 she leased it to Omar Badu Safadi (hereinafter referred to as the fourth defendant). In 1983 the parties replaced that lease with another one which was tendered as exhibit B. By the terms of exhibit B the plaintiff in fact leased the land with completed buildings thereon for fifteen years with an option of renewal. Exhibit B further contained the following provision in clause 2 (e): “Not to sublet, mortgage or assign his interest in the premises without the written consent of the lessor (such consent not to be unreasonably withheld) and any such sublesee, or mortgagee or assignee becoming responsible for all the obligations of this lease jointly and severally with the lessor.” In compliance with this provision, the plaintiff granted as per exhibit C permission to the fourth defendant to sublet the premises to the third defendant, S. K. Manu Akuamoah, the...