Tag (SQ): Failure of Consideration

Akosua Mensah, a businesswoman, who had a contract to supply timber logs to Asante Timber Co. Ltd, hired a tractor from Mavis Boateng, at a rate of GH $1,000.00 a day to enable her to haul the timber logs from her timber concession in Asankrangwa. Under the agreement, Akosua Mensah paid a deposit of GH $10,000.00. It is the case of Akosua Mensah that Mavis Boateng assured her that her tractor was in good condition and could haul at least 30 logs a day.

Akosua Mensah, however, found the tractor to be defective almost from the beginning, with the tractor hauling a maximum of seven (7) logs a day, and a total of 60 logs during a period of a little over one month. Akosua Mensah brought an action for damages for breach of contract. The Court awarded Akosua Mensah special damages of GH $20,000.00 on the basis of total failure of consideration.

Required:

(a). Explain whether in the circumstance of the case, there was either a breach of condition of the contract or a breach of warranty.

Explain in THREE (3) ways whether the court was justified in the award of GH $20,000.00 to Akosua Mensah for the failure of consideration.