JUDGMENT
DR. TWUM, J.S.C.
This is an appeal from the judgment of the Court of Appeal given on 13 June 2006.
The facts that spawned the litigation between the parties may be summarised as follows: The Agricultural Development Bank, the plaintiff-respondent (hereinafter called the bank), carried on banking business in Ghana and had a branch in Takoradi. The head office was of course in Accra. West Laurel Co Ltd, the first defendant-appellant (hereinafter called the first defendant) carried on business with the bank at the Takoradi branch. Subsequently, a third account was opened by the first defendant in Kumasi.
In or about 1993, the first defendant entered into two separate contracts with South Korean companies for the sale and shipment of Ghana timber of various species to them. In order to assure the first defendant that the timber would be paid for the companies instructed their bankers to open two commercial letters of credit in favour of the first defendant. These were numbered…