TEMA OIL REFINERY vs. AFRICAN AUTOMOBILE LTD

J.B. AKAMBA, J.A. The defendant/appellant (simply the appellant) is an Oil Refinery company based in Tema. Sometime in 2002, appellant invited tenders for the supply of one million, six hundred thousand litres (1,600,000 Lt) of “marine mix”. The contract bid price was expressed in Euros. Two suppliers won the contract - the plaintiff/respondents (simply respondent/s) and GOIL Limited. The respondent was awarded a contract to supply six hundred thousand (600,000) litres marine mix at a unit price of euro 1.63 of the tender whilst GOIL was to supply the remainder. The appellant issued a Purchase Order No.400041120P on 22nd August 2002 (see Exhibit “A”) to the respondent to confirm the contract. It is apparent from the records that after three deliveries of the product, the contract run into a deadlock. This occurred when the appellants refused to accept one of the respondents’ deliveries upon presentation. The reason given for the resultant stalemate was that the product wa...