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BMC GHANA LIMITED V. ASHANTI GOLDFIELDS BIBIANI LTD

(2004) JELR 69637 (CA)

Court of Appeal  •  CA.NO.H1/191/2004  •  29 Oct 2004  •  Ghana

Coram
TWUMASI J.A., AMONOO-MONNEY J.A., ANIN-YEBOAH J.A

Judgement

TWUMASI, J.A.

This appeal from the ruling delivered by the High Court, Accra on the 19th January 2004 sharply brings into focus the fundamental canons for the construction and interpretation of contracts entered into by businessmen, with particular reference to actual or presumed intentions of the parties. Both parties are limited liability companies engaged in the mining industry. By an agreement entered into by them on the 25th July 1997, the appellants herein (defendants in the court below) engaged the respondents (plaintiffs in the court below) to carry out open pit mining operations at the appellants’ Bibiani mine. It was an express term of the contract that where the costs to the plaintiffs of executing the work was increased or decreased, as the case might be, by variation in wages, allowance or any other labour connected costs of materials expressed as a component of the contract prices, the payment of the works under the contract would be subjected to adjustment for rise and f…

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