LAW TIP
When someone is denied the use of their money, the law allows interest as compensation. Interest can be based on law, agreement, or the court’s discretion.
QUOTE FROM JUDGEMENT
“The general principle for the award of interest to a party was that such party had been unjustifiably kept out of money due to him or her for the relevant period. In the instant case, the sum of ¢95m paid by the defendants to the plaintiff under the sale transaction entered into 1996, became legally vested in the plaintiff. She was thus entitled to keep the defendants out of that sum until the parties mutually agreed to the rescission of the sale transaction by the refund in 2000 of the purchase price by the plaintiff. The trial High Court had therefore rightly held that the defendants were not entitled to interest on the amount of $95m refunded by the plaintiff. The Court of Appeal had erred in reversing the decision of the trial court. Holland West Africa v Pan African Trading Co [1976] 2 GLR 179; Jefford v Gee [1970] 2 WLR 702, CA; Slater v Hughes (1971] 3 All ER 1287, CA; and Clarke v Rotax Aircraft [1975] 1 WLR 1570, CA cited. — Akoto v Gyamfi-Addo & Another (2005-2006] SCGLR 1018