[2017]DLHC3757 • June 27, 2017 • High Court
BYES AND WAYS CO LTD vs. MES BES LTD
The plaintiff, Byes and Ways Co Ltd, entered into a contract with the defendant, Mes Bes Ltd, for the supply of teak poles and stay blocks. The contract price was denominated in US dollars with an option to pay in Ghana cedi equivalent. The defendant made partial payments but left an outstanding balance of US$538,076.16. The defendant contended that the contract was illegal because repayment was stipulated in US dollars, allegedly contravening the Foreign Exchange Act, 2006 (Act 723), and thus the court lacked jurisdiction to enforce the contract.
read moreDefendant/Applicant has mounted this application seeking an order for the dismissal of the suit. The basis of the application, according to counsel for the applicant, is founded under section 3(1) and (4) of the Foreign Exchange Act, 2006 (Act 723) which states as follows: (1) “A person shall not engage in the business of dealing in foreign exchange without a license issued under the Act. (2) The Bank shall prescribe the banks or other corporate bodies or persons that it considers competent to engage in the business of dealing in foreign exchange. (3) The Bank shall issue or renew a licence to engage in the business of dealing in foreign exchange subject to conditions that the Bank shall determine: from time to time. (4) The business of dealing in foreign exchange includes the (a) purchase and sale of foreign currency, (5) (b) Receipt or payment of foreign currency, (6) (c) Importation and exportation of foreign currency, and (d) lending and borrowing of foreign currency.....