PELE AND ANOTHER vs. INTERNATIONAL COMMERCIAL BANK

The plaintiffs, Abedi Ayew Pele and his wife, owned a five-storey building at No 67 Kotobabi Road, Accra. The defendants, International Commercial Bank, expressed interest in leasing the premises. After negotiations and correspondence, including letters dated 16 September 1998 and 24 March 1999, a draft tenancy agreement was sent to the plaintiffs who signed and returned it. The commencement date was mutually agreed to be 1 November 1999. The defendants paid 25% of the first year's rent but later withdrew from the tenancy, citing internal issues and alleged unpreparedness of the premises. The plaintiffs had made substantial alterations to the building at the defendants' request. The defendants refused to take possession and requested a refund of the advance payment, leading to this suit for breach of contract and damages.

On 16 July 2001, I entered judgment in favour of the plaintiffs against the defendants in this suit as follows: (1) There exists a binding contract between the plaintiffs and the defendants by which contract the defendants were to take a lease of the plaintiffs’ premises house No 67, Kotobabi Road, Kotobabi, Accra for a period of five years with effect from 1 November 1999. (2) The amount of ¢141,682,000 paid by the defendants to the plaintiffs represented twenty-five percent of the first year’s rent in respect of the lease agreement. (3) The defendants are to pay the plaintiffs the seventy-five per cent balance of the first year’s rent representing an amount of ¢425,046,000 together with seven and a half per cent interest with effect from 1 November 1999 till date of final payment. (4) The defendants are to pay rents from 1 January 2000 to today, ie 16 July 2001. (5) The defendants are to pay rents from 16 July 2001 to the date of expiry of the five-year term, i...