Nana Yaa Obodai, at one time, worked for the National Investment Corporation as Head of its Legal Department. Whilst still in its employment, she received the following letter from the Corporation. The Board of Directors at the Emergency Board meeting, held on the 31 December 2004, proposed to sell the company’s houses being occupied by the Management Staff. In this regard, occupants are being given the first offer to purchase the above-mentioned house at the cost price of US $70,307 or its Cedi equivalent. Payment shall be made within 6 months. The communique further If you are interested, you are to indicate, in writing, to the undersigned by Monday, 31 January 2005. In response to this letter, Nana Yaa stated “I accept the offer to purchase House No. 4 Plateau Close at the cost price of US $ 70,307 or its cedis equivalent and to make payment within the stipulated 6 months, and it would be greatly appreciated if details of bank accounts into which payment may be made are provided for the benefit of the house loan company.” Following her e-mail, there was no further correspondence between the parties until the dispatch of the following letter from the corporation stating that “I am directed by the Board Chairman to inform you that, as was previously communicated to you following extensive deliberations on the above matter, the Board of Directors have decided to withdraw the offer for sale of the said property to enable the Company house its new management staff’’. Based on this communication, Nana Yaa Obodai brought action against the corporation, claiming that the exchange of letters in January 2005 resulted in an agreement that the corporation would sell to her, House No. 4 Plateau Close, East Legon Extension for the sum of US $ 70,307 or its equivalent in cedis and that she would pay the purchase price within 6 months of the offer. She stated that though she had requested the corporation the particulars of the bank account into which to pay the purchase price of the property, the corporation had neglected/refused to furnish such particulars.

Use the case scenario to answer the following questions: 

a. Critically analyse the above scenario and advise Nana Yaa Obodai on whether there was a legally binding agreement between her and the corporation. 

b. Evaluate if there are any remedies for breach of agreement.

Answer rating: 100% (QA)

aThere was no legally binding agreement between Nana Yaa Obodai and the corporation The corporation ... View the full answer