LAW TIP
An Allocation Note only shows intent to grant land. It is not proof of ownership. It lacks key details (type of grant, duration, size) & does not pass title without further legal steps like documentation & registration. NANA KWADWO POKU V. MICHAEL ADUSEI (H1/02/2017) (24/07/2018)
QUOTE FROM JUDGEMENT
“The Supreme Court recently had the opportunity to pronounce upon the validity of an Allocation Note. In the case of BOATENG (NO.2) v. MANU (2) AND ANOTHER [2007-2008] SCGLR 1117 the Court held that an Allocation Note is but the initial process to evidence that land has been acquired by an individual or corporate body. The Supreme Court speaking through Atuguba JSC held as follows: “That kind of paper cannot by itself represent the acquisition.” The Court went on and gave the reasons as follows:- “There are three main reasons why they cannot represent the fact of acquisition. Firstly, the Allocation Paper may or may not state the nature of the acquisition, i.e. whether it is a lease, a sale, a pledge, mortgage, gift, etc.; Secondly, it may not specify the duration of the acquisition; and thirdly, it may not give details of the extent of the extent of the land acquired.” The Court further explained that: “When admitted in evidence, it can only show that some transaction had taken place to signify that the owners or holders of land had purported to give some land to an individual or corporate body. The grantee will thereafter proceed to perfect his title by obtaining documents which will have to be registered.” The Allocation Paper per se cannot pass title from the grantor to the grantee. This Court has deduced from the Supreme Court’s reasoning that an Allocation Note is only the initial process in the acquisition of land. In the Allocation Note exhibited in the instant case, the nature of the acquisition is not stated, the duration of the acquisition is not stated, and neither the extent nor dimensions of the land are stated. It cannot therefore be a binding contract between the parties but only an intention expressed by the parties to the contract.” NANA KWADWO POKU V. MICHAEL ADUSEI (H1/02/2017) (24/07/2018)
LAW TIP
An Allocation Note alone is not a binding land sale contract because it lacks essential details required to make it legally enforceable. NANA KWADWO POKU V. MICHAEL ADUSEI (H1/02/2017) (24/07/2018)
QUOTE FROM JUDGEMENT
“Further, this Court holds the view that an Allocation note by itself cannot be a binding contract for the sale of land whose term are enforceable at law. The reason is simple. Allocation Notes are deficient in many respects to constitute a binding contract.” NANA KWADWO POKU V. MICHAEL ADUSEI (H1/02/2017) (24/07/2018)