OGDE vs. PEARL & DEAN (OVERSEAS) LTD [1961]DLHC5487

Date	1961-03-03
Suit No.
Citation No.	[1961]DLHC5487

OLLENNU J.

K. OHENE-AMPOFO FOR PLAINTIFF.

E.N.P. SOWAH FOR DEFENDANTS.

[1961]DLHC5487
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">OGDE <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">vs. <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">PEARL &amp; DEAN (OVERSEAS) LTD<o:p></o:p><span style="font-size:10.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">&nbsp;[HIGH COURT, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

<p class="MsoNormal" align="center" style="margin-bottom:5.0pt;text-align:center;
mso-pagination:none;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">[1961] 1 GLR 142&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE:<span style="font-size:10.0pt;line-height:
115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0"> 3RD MARCH, 1961.<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

K.
OHENE-AMPOFO FOR PLAINTIFF.<o:p></o:p>

</div>CORAM: <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

OLLENNU J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF
OLLENNU J.<o:p></o:p>[His lordship referred to the facts and continued:] The defence to
the claim for rents is that the option was never exercised by the company and
that it could only have been exercised by notice in writing given by them to
the plaintiff three months before the expiration of the original term of one
year, and since no such written notice was given, the defendant company are
entitled to vacate the premises at any time.<o:p></o:p><o:p>&nbsp;</o:p>The main issue in the case is whether the defendant company
exercised the option given them in clause 4(2) of the agreement. The
determination of that issue depends upon the combined effect of certain clauses
of the agreement, exhibit B.<o:p></o:p>The agreement provided, inter alia, that the tenancy shall be
‘renewable and determinable” as hereinafter provided. There is only one clause
dealing with renewal and only one clause dealing with determination. Clause 2,
sub-clause (5), which deals with determination is as follows:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“2. The Tenant agrees with the Landlord as follows:-<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(5) At the end or sooner determination of the tenancy to yield up
the premises, etc;” and clause 4, sub-clause (2) which deals with renewal is as
follows:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“That the Tenant shall have the option to renew the tenancy hereby
created for a further term of 4 years at the same rent and subject to the like
agreement and stipulations as are herein contained with the exception of this
right of renewal Provided notice of its intention to renew the tenancy is given
to the Landlord three months before the expiry of the tenancy hereby created”.<o:p></o:p>One peculiar feature of these renewal and determination provisions
in the agreement is, that each of them is at the election of the tenants; the
landlord has no say in the matter. Even where the option to renew is exercised
there is no need for him, the landlord, to grant any formal lease, the tenancy
would continue automatically for another four years.<o:p></o:p><o:p>&nbsp;</o:p>I interprete those clauses, read together, as follows:- If the
tenants should elect to determine their tenancy at the end of the one year they
should surrender the premises to the landlord, but if they should elect to
exercise the option then they should continue in occupation paying rents at the
same rate and in the same manner as they were paying during the term of one
year, and in either case the landlord has no alternative but to accept his
premises upon determination or to receive the rents upon the exercise of the
option.<o:p></o:p><o:p>&nbsp;</o:p>In those circumstances the provision for notice is just for the
information of the landlord and nothing else.<o:p></o:p>