ACCRA METROPOLITAN ASSEMBLY vs. CITY AND COUNTRY WASTE LTD

The plaintiff, City & Country Waste Ltd, a Ghanaian limited liability company engaged in waste management, entered into a seven-year contract with the defendant, Accra Metropolitan Assembly (AMA), a statutory body, on 4 December 1997 for waste disposal and landfill services in Accra. The plaintiff commenced work in July 1999 and continued until the defendant terminated the contract in June 2001. The plaintiff claimed breach of contract and sought payment for services rendered, damages, and loss of profit. The defendant challenged the contract's legality, alleging it was executed under duress and in breach of statutory provisions including the Local Government Act 1993 (Act 462) and AMA's standing orders, and that necessary approvals were not obtained.

Date-Bah JSC delivered the unanimous judgment of the court at the invitation of Akuffo JSC. The facts in this case are as follows: The plaintiff City & Country Waste Ltd, is a limited liability company incorporated under the laws of Ghana. It carries on the business of waste collection, disposal and management and also provides landfill services. The defendant, Accra Metropolitan Assembly is a statutory body whose existence as a district assembly was continued by the Local Government Act, 1993 (Act 462). By an agreement of 4 December 1997 the defendant engaged the plaintiff to render waste disposal services, including landfill services, within the city of Accra. The agreement was to last seven years from the date of its execution. The agreement further provided that both parties had the option of renewing it for a further seven years. The plaintiff averred that it commenced work under the agreement on 13 July 1999 and continued to perform its obligations under it until 29 June 2001 w...