FORDFLORA CO. LTD vs. JOSPONG GROUP OF COMPANIES, THE CHIEF EXECUTIVE OFFICER [JOSPONG GROUP] AND BETTER GHANA MANAGEMENT SERVICES LTD

The plaintiff, Fordflora Co. Ltd, a Ghana-registered business, entered into a contract with the 1st defendant, Jospong Group of Companies, also Ghana-registered, for the supply of 38,000 sets of uniforms for Health Extension Workers and Health Promotion Officers and Assistants. The contract was approved by the 2nd defendant, CEO of the 1st defendant, and involved a total contract sum of GHC 964,000.00. The plaintiff was to receive 40% payment upon delivery and subsequent monthly installments. Due to lack of mobilization funds from defendants and urgency of the order, the plaintiff secured a business loan of GHC 550,000.00 from IFS International Services Ltd, supported by an irrevocable undertaking from the defendants to pay in joint names. The defendants allegedly breached payment terms, unilaterally reduced the contract sum by GHC 38,000.00, and delayed payments, causing the plaintiff to default on loan repayments and incur interest and penalties.

Contract-Variation-Duress-Performance The plaintiff is a business entity registered under the Laws of Ghana while the 1st defendant made up of a group of companies is also registered under the laws of Ghana. 2nd defendant is Chief Executive officer of the 1st defendant. The 3rd defendant a subsidiary of the 1st defendant. The plaintiff’s case is that on or about the 29th of January 2012 the General Manager of the 3rd defendant sought and had the 2nd defendant’s approval to provide uniforms for Health Extension Workers [HEW] as well as Health Promotion officers and Assistants [HPOA]. Consequent upon the approval of the 2nd defendant, 1st defendant issued a local purchase order [LPO] [exhibit 2] to the plaintiff for the supply of 13,000 sets of uniforms for the HPOA at total cost of GHC364, 000.00 and an additional 25,000 sets of uniforms for the HEW at a cost of GHC600, 000.00 bringing the total sets of uniforms to 38,000 and a grand total cost of GHC964, 000.00. According to the ...