The case of Baidoo v Sam [1987-88] 2 GLR 666 CA was a dispute between two businessmen over the ownership and saleability of a registered business name, Unity Salt Industries, under which they allegedly operated a salt production business at Elmina. The plaintiff, Ellion Baidoo, claimed that he and the defendant, Kojo Sam, were partners in the business and that the defendant had sold the business name to a third party without his consent. The defendant denied that there was any partnership and asserted that he was the sole owner of the business name and the land on which the salt production took place. He also argued that the plaintiff was his agent and employee who had registered the business name on his behalf.
The Court of Appeal held that there was no partnership between the parties, as they had not registered their business under the Incorporated Private Partnership Act 1962 (Act 152), which was a prerequisite for operating a partnership in Ghana. The court also held that the registration of a business name under the Registration of Business Names Act 1962 (Act 151) did not confer any proprietary right or interest in the name, and that the name was not saleable as such. The court further held that the plaintiff, being a stranger to the contract of sale between the defendant and the third party, had no capacity to sue for its rescission.
The relevance of this case is that it clarifies the legal nature and effect of registering a business name in Ghana, and the distinction between a business name and a partnership. It also illustrates the importance of complying with the statutory requirements for forming and operating a partnership, and the consequences of engaging in unauthorized private business as a public officer. The case also raises some issues concerning the law of contract, such as the rights and obligations of agents, and the capacity of strangers to sue on contracts.
(1) Baidoo v. SAM – Case in company law – BAIDOO v. SAM [1987-88] 2 GLR 666 …. https://www.studocu.com/row/document/ghana-institute-of-management-and-public-administration/law/baidoo-v-sam-case-in-company-law/20004041.
(2) Can the insurance company be sued for loss suffered?. https://www.graphic.com.gh/lifestyle/can-the-insurance-company-be-sued-for-loss-suffered.html.