Ratio DecidendiRatio DecidendiRatio DecidendiRatio Decidendi


(1989) JELR 69664 (HC)    
High Court  ·  17 Apr 1989 ·  Ghana
Other Citations
[1992] 1 GLR 175

Ratio Decidendi

Core Terms Beta
first defendants
first defendant-bank
second defendant
instant case
first defendant witness
business of the bank
exhibit a
vicarious liability
behalf of the plaintiffs
commencement of this act
general rule
managing director
notice of the irregularity of the mandate
officer of the first defendant-bank
plaintiff company
third party
absence of any such notice
absence of evidence of such notice
accountant of the tema branch of the national savings
alleged guarantee of the said officer
bank finds
bank manager
basis of that guarantee
contracts act
credit bank
credit of any third person
customers of the bank
evidence of the first plaintiff witness
exact words of the guarantee
law of banking
lead evidence
mr. egbert isaac faibille
notice of the irregularities of the mandate
number of important issues
official stamp of the accountant of the branch bank
particular form
part of the contention of the first defendants
per cent interest
respect of current accounts
said officer of the bank
second defendant company
second defendant’s cheque
signature of the accountant
tenor of the evidence of the plaintiff witnesses
tenor of the evidence of the witnesses
validity of exhibit a
written instructions


The facts which resulted in this case are as follows: The second defendant company offered to buy rice from the plaintiff company by presenting a post-dated cheque in payment thereof. The plaintiff company declined to sell the rice against that post-dated cheque. The second defendant represented the same cheque, but this time with a guarantee written at the back. On the basis of that guarantee, the cheque was accepted by the plaintiff’s and the rice valued at ¢5 million was supplied to the second defendant. The cheque was tendered as exhibit A. The exact words of the guarantee which induced the plaintiffs to accept the cheque were “payment guaranteed.” Below those words appeared the signature of one S.O. Addo, who signed in his capacity as the accountant of the Tema branch of the National Savings and Credit Bank (hereafter referred to as the first defendants). The cheque did not merely bear the signature of the accountant but also had on it the official stamp of the accounta…

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