KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI

SCHOOL OF GRADUATE STUDIES

(COLLOGE OF HUMANITIES AND SOCIAL SCIENCES)

MHRS 551: BUSINESS LAW AND ETHICS

ADABRE NABE C. ADAEZE-20908154

Question 1.

The legal system of Ghana is made up of a well-structured system of courts. Outline the courts

that makeup the superior courts of judicature and with the aid of relevant authorities, discuss

the unique jurisdictions of those courts.

Articles 125 – 133 of the 1992 Constitution and the Courts Act, Act 459, as amended by Act 620
covers the respective composition and jurisdiction of the Supreme Court, the Court of Appeal,
the High Court, the Circuit and District Court.

The Constitution and the Courts Act provide for a Judiciary that is headed administratively by a
Chief Justice, and a court system that is structured into two broad divisions, namely, the Superior
Courts of Judicature on the one hand and the inferior or Lower Courts and Tribunals on the
other.

The legal system of Ghana has a hierarchical structure of courts with the superior courts of
judicature at the top (Constitution of Ghana, 1992). Indeed, to cement their judicial
independence, Article 127(1) of the constitution, provides expressly that, in the exercise of their
judicial function, the Judiciary cannot be subject to the control or direction of any person or
authority in Ghana.

These courts have unique jurisdictions that are defined by law.

Here are the courts that make up the superior courts of judicature in Ghana and their unique

jurisdictions:

Supreme Court of Ghana: The Supreme Court is the highest court in Ghana and has both

original and appellate jurisdiction. It has exclusive original jurisdiction in matters relating to the

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interpretation of the Constitution and has appellate jurisdiction in civil and criminal matters from

the Court of Appeal and the High Court (Judicial Service of Ghana).

The Supreme Court consists of the Chief Justice and not less than nine other Justices of the

Supreme Court, but is duly constituted for its work by not less than five Supreme Court Justices.

The Chief Justice presides at sittings of the Supreme Court and in his absence, the most senior of

the Justices of the Supreme Court presides. No person qualifies for appointment as a Justice of

the Supreme Court unless he/she is of high moral character and proven integrity and is of not less

than fifteen years’ standing as a lawyer

Court of Appeal: The Court of Appeal has appellate jurisdiction over civil and criminal matters

from the High Court. It is also responsible for hearing appeals from the National House of Chiefs

(Judicial Service of Ghana). The Court of Appeal is duly constituted by any three of its Justices

and when so constituted, the most senior of the Justices presides. No person qualifies for

appointment as a Justice of the Court of Appeal unless he is of high moral character and proven

integrity and is of not less than twelve years standing as a lawyer. The Court of Appeal is not

bound by its own precedents, and all courts below it is bound to follow its decisions on questions

of law.

The Court of Appeal has jurisdiction throughout Ghana to hear and determine, appeals from
among others judgments, decrees or orders of the High Court and Regional Tribunals. In general,
an appeal lies, as of right, from a judgment’s decrees or orders of the High Court and Regional
Tribunal to the Court of Appeal; and for the purposes of hearing and determining the
appeal the Court of Appeal by law` assumes all powers, authority and jurisdiction vested in the
Court from which the appeal emanates. The court of appeal, is the final court of appeal in
election petitions.

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Appeal court as the name implies, all appeal cases from the High Courts, Regional Tribunals and
Civil appeals from Circuit Courts are brought to the Court of Appeal. It also hears appeals from
some of the administrative bodies including Commissions of Inquiry set under the Constitution.
It is therefore, purely an appellate Court.

High Court: The High Court has both original and appellate jurisdiction. It has exclusive

original jurisdiction over cases relating to the enforcement of fundamental human rights and has

appellate jurisdiction over cases from the Circuit Court (Judicial Service of Ghana).

The High Court consists of the Chief Justice, not less than twenty Justices of the High Court, and
other Justices of the Superior Court of Judicature as the Chief Justice by writing signed by him,
request to sit as a High Court Judge. No person qualifies to be appointed as a High Court Judge,
unless he is a person of high moral character and proven integrity and is of at least ten years’
standing as a lawyer. It has original jurisdiction in all civil and criminal matters. It also has
appellate jurisdiction in appeals from the District Court and criminal appeals from the Circuit
Court. It has supervisory jurisdiction over all lower Courts in the country. It superintends and
controls all the subordinate courts. It can ask for details of proceedings from subordinate courts.
It issues rules regarding the working of the subordinate courts. It can transfer any case from one
court to another and can also transfer the case to itself and decide the same.

The High Court has power to issue to any person within its jurisdiction directions, orders, or
writs including writs which are in the nature of habeas corpus, mandamus, prohibition, quo
warranto and certiorari for enforcement of Fundamental Rights and for any other purpose.

INFERIOR COURTS

Circuit Court: The Circuit Court has both original and appellate jurisdiction. It has original

jurisdiction over criminal cases, civil cases with claims above a certain monetary threshold, and

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juvenile cases. It has appellate jurisdiction over cases from the District Court (Judicial Service of

Ghana).

District Court: The District Court has both original and appellate jurisdiction. It has original

jurisdiction over minor criminal offenses and civil cases with claims below a certain monetary

threshold. It has appellate jurisdiction over cases from the lower courts, including the Unit

Committee and the Area Council (Judicial Service of Ghana).

i. The legal system of Ghana

Ghana's legal system is based on English common law and customary law, with the Constitution

serving as the supreme law of the land (Constitution of Ghana, 1992). The legal system of Ghana

has a hierarchical structure of courts, with the superior courts of judicature at the top.

The court system in Ghana comprises four main levels: traditional courts, lower courts, superior

courts, and the Supreme Court (Okae-Anti, 2019). The traditional courts, also known as

customary courts, operate under the authority of customary law and have jurisdiction over

traditional matters such as land disputes, inheritance, and family matters. The lower courts

consist of the Circuit Court and the District Court, which have jurisdiction over criminal and

civil matters.

The superior courts of judicature in Ghana include the Court of Appeal, High Court, and the

Supreme Court. The Court of Appeal hears appeals from the lower courts, while the High Court

has jurisdiction over civil and criminal cases. The Supreme Court is the highest court in Ghana

and has exclusive jurisdiction over matters relating to the interpretation of the Constitution

(Judicial Service of Ghana).

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The legal profession in Ghana is regulated by the Ghana Bar Association (GBA), which is the

professional body for lawyers in the country. The GBA ensures that lawyers adhere to ethical

standards and provides support and training for its members (Ghana Bar Association).

In summary, Ghana's legal system is a hybrid of English common law and customary law, with a

hierarchical structure of courts. The traditional courts, lower courts, superior courts, and the

Supreme Court make up the court system in Ghana. The Ghana Bar Association regulates the

legal profession in the country.

ii. The superior and inferior courts

The court system in Ghana is made up of superior and inferior courts. The superior courts consist

of the Court of Appeal, the High Court, and the Supreme Court, while the inferior courts

comprise the Circuit Court and the District Court (Judicial Service of Ghana).

The superior courts are the highest courts in Ghana, and their decisions are binding on the lower

courts. The Court of Appeal hears appeals from the High Court and has the power to overturn or

affirm the decisions of the lower courts. The High Court has both original and appellate

jurisdiction and hears cases involving civil and criminal matters. The Supreme Court is the final

court of appeal and has exclusive jurisdiction over matters related to the interpretation of the

Constitution (Judicial Service of Ghana).

The inferior courts, on the other hand, have limited jurisdiction and are the entry points for most

legal disputes in Ghana. The Circuit Court hears cases involving criminal matters, civil matters

with claims exceeding a certain amount, and juvenile matters. The District Court has jurisdiction

over minor criminal offenses and civil matters with claims below a certain amount. Both the

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Circuit Court and the District Court have the power to hear cases as well as to conduct trials and

render judgments (Judicial Service of Ghana).

In summary, Ghana's court system is divided into superior and inferior courts. The superior

courts include the Court of Appeal, High Court, and Supreme Court, while the inferior courts

comprise the Circuit Court and District Court. The superior courts have higher jurisdiction and

hear appeals from the inferior courts, while the inferior courts have limited jurisdiction and are

the entry points for most legal disputes.

iii. Supreme Court and its unique features

The Supreme Court is the highest court in Ghana and has exclusive jurisdiction over matters

relating to the interpretation of the Constitution (Judicial Service of Ghana). Its unique

jurisdiction is in hearing and determining constitutional matters brought before it. According to

Article 130 of the Constitution of Ghana, the Supreme Court has original jurisdiction in any

dispute concerning the interpretation of the Constitution and has the power to enforce its

judgments, orders, and directions (Constitution of Ghana, 1992).

The Supreme Court also has appellate jurisdiction in civil and criminal matters. It hears appeals

from the Court of Appeal, which hears appeals from the High Court and Circuit Court (Judicial

Service of Ghana). In criminal cases, the Supreme Court has the power to hear appeals against

conviction, sentence, or both, and can impose more severe sentences than those given by the

lower courts (Criminal Procedure Code, 1960).

The Supreme Court is composed of the Chief Justice and not less than nine other justices. The

President appoints the justices of the Supreme Court with the advice of the Judicial Council and

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the approval of Parliament. The Chief Justice is appointed by the President in consultation with

the Council of State and with the approval of Parliament (Constitution of Ghana, 1992).

In conclusion, the Supreme Court is the highest court in Ghana, with exclusive jurisdiction over

matters relating to the interpretation of the Constitution. It also has appellate jurisdiction in civil

and criminal cases. The composition of the Supreme Court is determined by the President with

the advice of the Judicial Council and the approval of Parliament.

iv. Appeal court and its unique features

The Court of Appeal is the second-highest court in Ghana, and its unique features include its

appellate jurisdiction over decisions of the High Court and its power to review and overturn

those decisions (Judicial Service of Ghana). The Court of Appeal is composed of the President of

the Court of Appeal and not less than nine other justices of appeal. The President is appointed by

the President of Ghana, acting on the advice of the Judicial Council and with the approval of

Parliament, while the other justices are appointed by the President in consultation with the

Judicial Council and with the approval of Parliament (Constitution of Ghana, 1992).

The Court of Appeal has jurisdiction over both civil and criminal matters. In civil cases, it has

jurisdiction over appeals against decisions of the High Court, which include decisions in cases

relating to land, property, and contract matters. In criminal cases, the Court of Appeal hears

appeals against convictions, sentences, or both, which have been decided by the High Court or

the Circuit Court (Judicial Service of Ghana).

The Court of Appeal also has the power to issue writs, including writs of habeas corpus,

mandamus, and prohibition, to enforce its judgments or to compel public officials or bodies to

perform their duties (Judicial Service of Ghana).

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In conclusion, the Court of Appeal is the second-highest court in Ghana, with appellate

jurisdiction over decisions of the High Court. Its unique features include its power to review and

overturn those decisions, issue writs to enforce its judgments, and its jurisdiction over both civil

and criminal matters.

v. High court and its unique features

The High Court is the third-highest court in Ghana, and its unique features include its original

jurisdiction in both civil and criminal matters. The High Court is also responsible for the

enforcement of fundamental human rights, and has the power to hear appeals from lower courts

(Judicial Service of Ghana).

The High Court is composed of judges appointed by the President of Ghana, acting on the advice

of the Judicial Council and with the approval of Parliament. The judges of the High Court are

required to have at least seven years of legal practice experience and are appointed for life

(Constitution of Ghana, 1992).

The High Court has original jurisdiction in all matters relating to civil disputes, including cases

relating to land, property, and contract disputes. It also has original jurisdiction in criminal

matters involving serious offenses such as murder, treason, and rape. In addition, the High Court

has jurisdiction to enforce fundamental human rights enshrined in the Constitution of Ghana, and

can issue writs such as habeas corpus, mandamus, and certiorari (Judicial Service of Ghana).

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The High Court also has appellate jurisdiction over decisions of the lower courts such as the

Circuit Court and District Court. Appeals from the High Court are heard by the Court of Appeal

(Judicial Service of Ghana).

In conclusion, the High Court is the third-highest court in Ghana, with original jurisdiction in

both civil and criminal matters. Its unique features include its responsibility for the enforcement

of fundamental human rights, and its appellate jurisdiction over decisions of the lower courts.

In summary, Ghana’s judicial system is a well-organized system of courts that use both

conventional and contemporary legal ideas. The system has both superior and inferior courts,

with the Supreme Court, the Court of Appeals, and the High Court making up the superior

courts. These courts all contribute to the overall efficiency of the legal system through their

various jurisdictions and duties.

The Supreme Court is Ghana's highest court and has final appellate authority over all cases,

including those involving the constitution. The Supreme Court has primary jurisdiction over all

cases, including those involving criminal, civil, and business disputes, while the Court of Appeal

functions as an intermediate appellate court.

The inferior courts include the circuit courts, the district courts, and the traditional courts. These

courts are responsible for handling minor offenses and civil matters within their respective

jurisdictions.

In general, Ghana's legal framework aims to uphold equity, justice, and the defense of individual

rights. Like any other legal system, it does have its drawbacks, such as problems with corruption,

backlogs in the courts, and restricted access to legal services for specific groups of the

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population. However, the Ghanaian government has taken action to solve these issues and

enhance the overall efficacy and efficiency of the judicial system.

Question 2

“The law of Agency imposes certain duties both on the Agent and the Principal”. Discuss the

duties of Agent and Principal separately.

The law of agency establishes certain obligations for both the agent and the principal and

regulates their relationship. The obligations of the agent and principal in this situation can be

explored separately as follows:

i. Agency

A legal relationship in which one party (the agent) acts on behalf of another party (the principle)

while being authorized and controlled by the principal is referred to as an agency. In other words,

an agent is permitted to act on behalf of the principle and enter into contracts or make decisions

that have legal consequences for the principal.

The relationship between the agent and the principal is governed by the law of agency, a subset

of commercial law. It explains the parameters of the agency's relationship and specifies the

rights, obligations, and duties of each party.

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A range of situations, such as job ties, real estate deals, and business interactions, can give rise to

agency partnerships. An employee might represent their employer, but a real estate agent might

represent their clients.

In many jurisdictions, both statute laws and common law concepts control the law of agency.

When working as an agent or a principal, parties must be aware of the nature of the agency's

relationship and the legal ramifications of their activities.

In a nutshell, agency refers to a legal relationship where one party (the agent) acts on behalf of

another party (the principal) with the latter's authority and under their control. The law of agency

governs this relationship and defines the rights, duties, and obligations of each party.

ii. An Agent

An agent is a person or an institution that has been given permission to act on behalf of the

principal, another person. The agent is given the authority to enter into contracts or make choices

that have legal consequences for the principal. The agent's authority may be expressed, which

means it has been given specifically by the principal, or implied, which means it has been

inferred from the actions of the parties or other factors. The relationship between the agent and

the principal is governed by the law of agency, which establishes the rights, obligations, and

responsibilities of each party. Agents can be either specific people, like employees or real estate

agents, or they can be organizations, like corporations or partnerships.

iii. A Principal

A principal is a person or entity that authorizes another person or entity, known as the agent, to

act on their behalf. The agent is given the authority to make legally binding decisions or

contractual obligations that affects the principal. The principal can be an individual, such as a

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person hiring a real estate agent to sell their property, or an entity, such as a corporation hiring an

employee to manage a department.

1. Duties of the Agent

The agent has certain duties to the principal, which include the following:

a. Duty to Execute the Mandates of the Principal: An agent is bound to conduct the
business of the principal according to the directions given by the principal. The principal
has to act as he/she/it would have acted had he/she/it been the principal. But if the
principal is ambiguous in his words, he/she/it later on cannot impose an interpretation.
When the agent acts otherwise, and any loss is sustained, the agent must make it good to
his principal and if any profit accrues, he must account for it

b. Duty to Follow the Custom: In the absence of any directions by the principal, the agent
should act according to the customs which prevail in doing business of the same kind at
the place where the agent conducts such business. When the agent acts otherwise, if any
loss be sustained, the agent must make it good to his principal and if any profit accrues,
the agent must account for it.

c. Duty of Reasonable Care, Skill, and Diligence: An agent is bound to conduct the
business of the agency with as much skill as is generally possessed by person or entities
engaged in similar business, unless the principal has given notice of its preference of
skill. The agent is always bound to act with reasonable diligence, and to use such skill as
it possesses; and to make compensation to the principal in respect of the direct
consequences of its own neglect, want of skill, or misconduct, but not in respect of loss or

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 damage which are indirectly or remotely caused by such neglect, want of skill, or
misconduct.

d. Duty to Render Accounts: An agent is bound to render proper accounts to its principal
on demand. To communicate profit/loss/income gained/income lost and not keep the
principal in darkness. An agent make sure that all these are reported to the principal for
the better of the company or organization.
e. Agent’s Duty to Communicate with Principal: It is the duty of an agent in case of
difficulty, to use all reasonable diligence in communicating with its principal, and in
seeking to obtain its instructions. The agent will have to make good the losses caused due
to non-communication.

f. Duty of obedience and loyalty: Agents must act in allegiance solely to the principal.
That is with the Principal’s best interest in mind and must act cautiously and prudently
carrying out the principal’s instructions and not its own. Example: If a stock broker agent
fails to act in the interest of the principal without following Principal’s instructions, and
fails to sell the stock at a specified level at which the principal directed then the agent
will be liable to pay damages to the principal for the loss of profits suffered.

2. Duties of the Principal

The principal also has certain duties to the agent, which include the following:

a. Duty to Compensate: An agency's relationship may be paid or gratuitous. If the agency

agreement does not indicate the terms of compensation, the principal is obliged to
provide the agent with reasonable compensation. Example: Default rules in a relationship
with a sales agent dictate that the agent will earn a reasonable commission on sales
induced or completed.

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 b. Duty to Reimburse: The principal must reimburse the agent for a reasonable amount
expended in carrying out her duties. Reasonable reimbursement includes the cost of
travel, meals, lodging, incidental expenses, etc.

c. Duty to Indemnify: Generally, a principal must indemnify an agent for liability incurred
in the performance of his/her duties. This generally arises when the instructions of the
principal subject to the agent to liability to a third party.If an agent exceeds or acts
outside of the scope of his/her authority, the principal may be relieved from the duty to
indemnify. If the principal later ratifies the actions of the agent, the principal will incur
the obligation to indemnify the agent against liability.

d. Misrepresentations or fraud by agent: Misrepresentations made, or frauds committed,

by an agent acting in the courses of business for the principal, has the same effect of
agreement made by such agent as if such misrepresentations or fraud had been made or
committed by the principal.

In conclusion, the principal-agent relationship is often governed by a contract that outlines the
terms and conditions of the relationship, including the scope of the agent’s authority, the duties
and responsibilities of the agent, and the compensation and other benefits the agent will receive
for their services. Whether the principal-agent relationship is expressed clearly through a written
contract or is implied through actions, the principal-agent relationship creates a fiduciary
relationship between the parties involved, which is a legal obligation that the agent owes to the
principal to act with the utmost good faith and loyalty. This means the agent acting on behalf of
the principal must carry out the assigned tasks with the principal’s best interest as a priority.
However, if an agent breaches their fiduciary duty, they may be held liable for damages or other
legal consequences
Additionally, one of the challenges in principal-agent relationship is the potential for conflict of
interest between the principal and the agent. For Example, an agent may be tempted to act in
their own interest rather than in the interest of the principal. To address this, the principal often
uses incentives, such as commissions or bonuses to align the interest of the agent with their own.

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Overall, the principal-agent relationship is a complex and important aspect of many business and
legal transactions, and understanding its dynamics and potential pitfalls is essential for
successfully navigating these relationships

References

Constitution of Ghana, 1992. Retrieved from

https://www.constituteproject.org/constitution/Ghana_1992.pdf

Criminal Procedure Code, 1960. Act 30. Retrieved from

https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/50495/65421/F-1406144015/

GHA50495%20%28en%29.pdf

Ghana Bar Association. (n.d.). About Us. Retrieved March 12, 2023, from

https://www.ghanabar.org/about-us/

Judicial Service of Ghana. (n.d.). The Judiciary. Retrieved March 12, 2023, from

https://www.judicial.gov.gh/index.php/about-us/the-judiciary/

Lorenzen, J. (2020). Agency Law. Legal Information Institute. Retrieved from

https://www.law.cornell.edu/wex/agency_law

Okae-Anti, D. (2019). Ghana's Legal System: The Need for Reforms. Journal of Law and

Society, 1(1), 1-14. https://doi.org/10.31296/jls.v1i1.5509

Pillai, K. (2018). Law of Agency. Oxford University Press.

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"Agency Law." Legal Information Institute, Cornell Law School.

https://www.law.cornell.edu/wex/agency_law.

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