[2018]DLCA4768 • April 26, 2018 • Court of Appeal
TULLOW GHANA LIMITED vs. SKYLIMIT STRUCTURE BUILDERS CO. LIMITED
The appellant, Tullow Ghana Limited, invited tenders for crane and forklift services at Takoradi. The respondent, Skylimit Structure Builders Co. Limited, submitted a tender and engaged in extensive clarifications with the appellant after the tender period closed. The parties reached a precontractual agreement subject to the appellant's partners' approval. The respondent began preparations based on the expectation of contract award. The appellant later terminated the precontract citing noncompliance with technical standards, which the respondent contested as an afterthought. The respondent claimed damages for expenses incurred and loss of contract opportunity.
read moreTANKO AMADU J.A (1) This appeal raises interesting issues about the law and interpretation of pre contractual agreements. It also raises the issue about the philosophy, assessment and award of damages for breach of pre contract negotiations particularly where a claimant alleges that it has suffered loss as a result of the exercise of an election by the other contracting party to withdraw and refuse to commit itself to a formal contract. Simply put therefore the crucial issue arising from this appeal is the determination of the degree of liability of a party who withdraws from an agreement to enter into a formal contract. (2) In the High Court (Commercial Division) Accra, the Plaintiff/ Respondent hereinafter referred to as the “Respondent”) claimed from the Defendant/Appellant (hereinafter referred to as the “Appellant”), the following reliefs:- (i) A declaration that having regard to all the circumstances of this case,it will be inequitable for Defendant to resile from i...