[2016]DLSC2861 • March 22, 2016 • Supreme Court •
ANDREAS BSCHOR GMBH & CO. KG vs. BIRIM WOOD COMPLEX LTD AND BIRIM TIMBERS LTD
In 1988, the parties entered a business transaction for the supply and installation of a sawmill by the plaintiff to the defendants, to be paid by timber products supplied to the plaintiff. The transaction lacked a formal contract, relying on mutual trust. After installation in 1991, the defendants experienced technical problems; some were rectified by the plaintiff, others by the defendants. The defendants initially failed to supply timber as payment, leading to plaintiff demanding payment. Partial payments and timber supplies were made but did not settle the claim, resulting in litigation starting in 1994. The High Court ruled in favor of defendants on counterclaim for damages due to breach of implied conditions under the Sale of Goods Act, 1962. The Court of Appeal reversed part of this, dismissing the counterclaim and holding the Sale of Goods Act inapplicable as the plaintiff did not sell in the ordinary course of business. The defendants appealed to the Supreme Court.
read morePWAMANG, JSC. In 1988 the parties herein, who were in timber business in Ghana, entered into a business transaction worth about DM1.2 million for the supply and installation of a saw-mill for the defendants/respondents/appellants, hereafter referred to as the defendants, to be paid for with the supply of timber products to the plaintiff/appellant/respondent, hereafter referred to as the plaintiff. The transaction was not covered by a properly drawn up and executed contract document as the parties must have placed trust in each other. Unfortunately, events shortly after the installation of the sawn mill proved that trust alone, without properly executed contract, was not enough to ensure a smooth business relationship and they ended up in litigation which has lasted for about twenty years. The litigation commenced in 1994 in the High Court at Akim Oda where defendants are based and after judgment there was an appeal to the Court of Appeal. This is an appeal against the decision of t...