FRIGO LIMITED vs. INFITCO COMPANY LTD

The case arose from a construction contract entered into in March 2001 under which the respondent, a company operating cold stores, engaged the appellant to construct a cold store facility at Tema for US$392,000 excluding VAT. In February 2007, the terms were renewed to include insulation using polyurethane spray system, installation of cooling units, and related electrical and fitting works. The respondent paid a total of US$400,000, while an outstanding balance of US$150,000 was to be paid by instalments. The respondent alleged that the appellant failed to complete the contracted works and sought recovery of US$250,000 said to represent money paid for unexecuted works, together with interest. The judgment states: “The defendant breached the terms of the contract and failed to complete the works as agreed.” It further records that “By exhibit 4 ... the parties in their own handwriting listed works done under the contract and works undone. The document was signed by both parties.”

A.M. DORDZIE J. A: This action arose out of breach of a construction contract the parties entered into in March 2001. By the terms of the said contract the plaintiff, a company that operates cold stores engaged the defendant to construct a cold store facility for it at Tema at a cost of USD392, 000 excluding VAT. In February 2007 the contract terms were renewed to include insulation using polyurethane spray system, installation of cooling units and other works such as electrical, doors and cable fixing. The plaintiff paid a total of USD 400,000 out of the contract sum and had USD150, 000 as an outstanding balance to be paid by instalment per terms agreed to in the contract. The defendant breached the terms of the contract and failed to complete the works as agreed. The plaintiff on the 22nd of December 2014 instituted an action in the High Court, Tema seeking the following reliefs: a) “The payment of USD 250, 000 which is the outstanding balance out of the sum of USD 400, 000 paid.....