ADDISON vs. A/S NORWAY CEMENT EXPORT LTD. [1973]DLCA2350

Date	1973-05-19
Suit No.
Citation No.	[1973]DLCA2350

ANIN JA

KINGSLEY-NYINAH JA

ANNAN J.A.

U.V. CAMPBELL FOR THE APPELLANT.

J. REINDORF (WITH HIM J. E. QUASHIE-IDUN) FOR THE RESPONDENTS.

[1973]DLCA2350
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													<main id="main" class="content" style="min-height: 60rem" >ADDISON<o:p></o:p>&nbsp;vs. <o:p></o:p>A/S NORWAY CEMENT EXPORT LTD. <o:p></o:p>[COURT OF APPEAL,
ACCRA]<o:p></o:p>&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1973]
2 GLR 151<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

DATE:
19 APRIL 1973.<o:p></o:p>

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

U.V. CAMPBELL FOR THE APPELLANT.<o:p></o:p>

J. REINDORF (WITH HIM J. E. QUASHIE-IDUN) FOR THE
RESPONDENTS.<o:p></o:p>

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

ANIN, KINGSLEY-NYINAH AND ANNAN JJ.A.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF ANIN J.A<o:p></o:p>After the
1966 coup d’etat, the Ghana Government embarked on a reorganisation of the
Ghana Cement Works at Tema and Takoradi, and a new company, Ghana Cement Works
Ltd. was incorporated to take over the old cement works at the two ports.
Advertisements were published inviting private entrepreneurs to enter into
joint financial participation with the government in the proposed venture. Both
parties to this suit were interested in joint participation with the government
in the new company.<o:p></o:p><o:p>&nbsp;</o:p>In the
statement of claim, the plaintiff-appellant (hereinafter called simply the
plaintiff) disclosed that he was requested by the defendants - respondents
(hereinafter referred to simply as the defendants) to negotiate with the Ghana
Government for (a) the financial participation of the defendants in the new
company and (b) the contract for the exclusive supply by the defendants to
Ghana Cement Works Ltd. of all the latter’s clinker supply requirements for a
period of two years. Both negotiations were successfully concluded; and the two
agreements were duly executed between the government and the defendants in
April and May 1967. We learn from paragraph (4) of the statement of claim that
“it was an implied term of the engagement of the plaintiff by the defendants in
these negotiations that the latter would remunerate the former for successfully
conducting the said negotiations” and in paragraph (5) that pursuant to this implied
term the parties concluded an oral agreement on or about 10 December 1968,<o:p></o:p><o:p>&nbsp;</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">“whereunder
the plaintiff for successfully concluding the negotiation leading to
participation by the defendants in the Ghana Cement Works Ltd., was to have
transferred to him 10,000 shares fully paid by the defendants and also was to
have an option expiring on 31 August 1970 to purchase a further 90,000 shares
from defendants’ shareholding at an agreed price per share. This oral agreement
was confirmed by the defendants on 24 December 1968.”<o:p></o:p><o:p>&nbsp;</o:p>The
statement of claim concluded that: “On or about 27 July 1969 the defendants
orally agreed with the plaintiff to pay to him the sum of N¢80,000 by way of
commission for work done in successfully negotiating on behalf of the defendants
the exclusive supply by the defendants of the entire clinker supply of the
Ghana Cement Works Ltd.” See paragraph (6) as amended.<o:p></o:p>Incidentally,
the only claim endorsed on the writ of summons, as amended, was for “the sum of
N¢80,000 (plus interest of ten per cent per annum thereon) being agreed
commission for work done in successfully negotiating on behalf of the
defendants the exclusive supply by the defendants of N¢9,800,000 worth of
clinker to Ghana Cement Works Ltd.”<o:p></o:p><o:p>&nbsp;</o:p>In the
statement of defence, the defendants at first denied that the plaintiff
conducted any negotiations on their behalf or at their request. They admitted,
however, that he performed certain services for them, and in paragraph (4)
stated that,<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">“at the
conclusion of the negotiations they agreed to remunerate him for his services
during the negotiations which they themselves conducted. The remuneration was
to be </main>