TRUSTY FOODS LTD & ANOR vs. BANK OF AFRICA & 2 OTHERS

JUDGMENT By an agreement dated 2nd May 2008, plaintiff entered into an agreement with National Farmers and Fishermen Award Winners Association of Ghana (hereinafter referred to as NFFAWAG) under which the latter undertook to cultivate 5,000 hectors of land for the supply of tomatoes for plaintiff’s tomato processing factory. In furtherance of the agreement, NFFAWAG contracted 2nd defendant (whose Managing Director is 3rd defendant,) to undertake land preparation for the project. The cost of preparing the land as agreed between 2nd defendant and NFFAWAG was Ghc1 million, which was to be borne by plaintiff (the contract employer). In furtherance of plaintiff’s obligations under the agreement, 2nd defendant applied for and was granted a loan of Ghc700,000 by 1st defendant to finance the preparation of the 5,000 hectors of land for the project, (having prior to that raised the sum of Ghc300,000 on her own). Plaintiff gave an irrevocable guarantee for the loan. On completion of 3,500 ...