May 24, 1973
IN THE SUPREME COURT
Agip
Appellant
SC CIV APP 10 of 1972
[1973] SLSC 5
Proceeding. Civil appeal. Sierra Leone.
Held. per totam curiam, setting aside the Court of Appeal’s decision and affirming the decision
of the trial judge , but substituting the order for damages with an order for recovery of
possession:
Per Cole CJ:
1. The Tribal Authority’s acceptance of rent while knowing that Abess had failed to register the
lease effected a waiver of the breach as a matter of law. The intent or motive with which the
rents were accepted by the Tribal Authority was not relevant. Matthews v Smallwood [1910] 1
Ch 777 and Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048 applied.
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2. There were no special circumstances, namely miscarriage of justice or violation of any principle
of law or procedure that would justify overturning the concurrent findings by the trial judge and
the Court of Appeal on the facts that the appellant had induced a breach of contract. Srimati
Bibhabati Devi v Kumar Ramendra Narayan Roy [1946] AC 508 applied.
3. As the lease was valid and subsisting at all times, Abess was entitled to possession of the land
in priority to the appellant. The trial judge therefore erred in awarding damages in lieu of an
order for recovery of possession.
4. On the question of damages, the Court of Appeal ought not to have awarded special damages,
as it was never pleaded or raised as an issue. The Court of Appeal’s award of Le30,000 in respect
of inducement for breach of contract was excessive, and the trial judge’s award of Le5,000 was
sufficient. In all the circumstances, the trial judge’s award of Le20,000 as damages for trespass
was
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AGIP (SIERRA LEONE) LTD v EDMASK & PARAMOUNT CHIEF OF KAKUA
CHIEFDOM & CHIEFDOM COUNCIL
SC
SUPREME COURT OF SIERRA LEONE, Supreme Court Civil Appeal 10 of 1972, Hon Mr
Justice COB Cole CJ, Hon Mr Justice Forster JSC, The Hon Mr Justice Livesey Luke JSC, Hon Mr
Justice Davies JA, Hon Mr Justice Tejan JA, 1973
[1] Landlord & Tenant – Relief against forfeiture – Waiver – Tenant’s failure to register
lease – Whether acceptance of rents by landlord constituted waiver of breach –
Conditional acceptance of rent does not prevent waiver – Order for possession of land
should be made instead of damages – Provinces Land Act (Cap 122) s 9
[2] Landlord & Tenant – Lease – Termination – No condition that failure to register lease
made lease void and gave landlord right to re-enter – Issue of writ seeking possession the
correct course to terminate lease
[3] Landlord & Tenant – Wrongful termination of lease – Damages – Trespass – Inducing
breach of contract – Breach of covenant for quiet enjoyment
[4] Tort – Inducing breach of contract – Lease – Ingredients – Breach of contract necessary
– No liability where contract lawfully terminated – Payment of “shake-hand” and survey
of land with knowledge of pre-existing lease amounted to evidence of inconsistent dealing
by contract breaker
On 16 May 1962 the second respondents, the Paramount Chief of Kakua Chiefdom and the
Chiefdom Council (“the Tribal Authority”), leased land in the Bo District to the first respondent,
Abess Ali Edmask (“Abess”). Under the terms of the lease and s 9 of the Provinces Land Act (Cap
122) the lease was voidable at the option of either party if it was not registered within 60 days of
execution at the office of the Registrar-General. Although the lease was not registered until 27
November 1962, the Tribal Authority allowed the first respondent to take possession of the land and
received rent for the years 1962 and 1963. On 20 January 1964, the Tribal Authority gave notice to
Abess that it was voiding the lease and re-entering the land on the basis that the lease had not been
registered within 60 days of its execution. On 31 January 1964, the Tribal Authority leased land to
the appellant (“Agip”) which included area leased to Abess, and this lease was duly registered within
60 days. Abess took action against the Tribal Authority and Agip claiming damages for trespass,
inducing breach of contract and breach of covenant for quiet enjoyment.
The trial judge held in favour of Abess, finding that the lease had not been legally avoided and
that the failure to register the lease which entitled the lease to be voided was waived by the Tribal
Authority’s receipt of rents due under the lease. The trial judge awarded damages in lieu of
possession, damages for inducing a breach of contract and damages under several other heads. On
appeal, the Court of Appeal held that the trial judge was wrong to find that the lease was valid and
had not been terminated according to law, and that Abess was therefore not entitled to possession or
damages in lieu. However, the Court of Appeal agreed with the trial judge that Agip had induced a
breach of contract between Abess and the Tribal Authority and awarded exemplary and special
damages. Agip appealed to the Supreme Court against this decision and Abess also cross-appealed
for recovery of possession on the basis that the trial judge was correct in finding that the lease had
not been validly terminated.
Held, per totam curiam, setting aside the Court of Appeal’s decision and affirming the decision
of the trial judge , but substituting the order for damages with an order for recovery of
possession:
Per Cole CJ:
1. The Tribal Authority’s acceptance of rent while knowing that Abess had failed to register the
lease effected a waiver of the breach as a matter of law. The intent or motive with which the
rents were accepted by the Tribal Authority was not relevant. Matthews v Smallwood [1910] 1
Ch 777 and Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048 applied.
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2. There were no special circumstances, namely miscarriage of justice or violation of any principle
of law or procedure that would justify overturning the concurrent findings by the trial judge and
the Court of Appeal on the facts that the appellant had induced a breach of contract. Srimati
Bibhabati Devi v Kumar Ramendra Narayan Roy [1946] AC 508 applied.
3. As the lease was valid and subsisting at all times, Abess was entitled to possession of the land
in priority to the appellant. The trial judge therefore erred in awarding damages in lieu of an
order for recovery of possession.
4. On the question of damages, the Court of Appeal ought not to have awarded special damages,
as it was never pleaded or raised as an issue. The Court of Appeal’s award of Le30,000 in respect
of inducement for breach of contract was excessive, and the trial judge’s award of Le5,000 was
sufficient. In all the circumstances, the trial judge’s award of Le20,000 as damages for trespass
was excessive and should be reduced to Le10,000.
Per Forster JSC:
5. Where money was paid and received as rent under a lease, a mere protest that it was accepted
conditionally and without prejudice to the right to insist on a prior forfeiture, did not prevent a
waiver of the forfeiture. Davenport v The Queen (1877-78) LR 3 App Cas 115 referred to.
Per Livesey Luke JSC:
6. Neither s 9 of the Provinces Land Act (Cap 122) nor clause 4 of the Abess lease made the lease
determinable on the failure of the lessee to meet his contractual duties. Therefore, there was no
condition created which allowed the landlord a right of re-entry upon the tenant’s breach.
7. The right to avoid a lease is exercised by the person having the right doing some unequivocal
act which indicates the intention to avail himself of the option conferred on him to avoid the
lease. The unequivocal act in a case where the party avoiding the lease does not have a right of
re-entry (such as the present) is the issue and service of a writ of summons for recovery of
possession. Canas Property Co Ltd v K L Television Services Ltd [1970] 2 All ER 795; [1970]
2 QB 433 applied.
8. A breach of contract is a necessary ingredient of an action for damages for inducing a breach of
contract. If a contract is lawfully terminated, there can be no liability in an action for damages
for inducing a breach of contract. Allen v Flood [1898] AC 1 and DC Thompson & Co Ltd v
Deakin & Ors [1952] 2 All ER 361 applied. Emerald Construction Co Ltd v Lowthian & Ors
[1966] 1 All ER 1013 distinguished.
9. The evidence of inducement by the appellant was the fact that, after they had knowledge of the
Abess lease, they paid “shake-hand” to the Paramount Chief and they went on the land and
surveyed it. This amounted to inconsistent dealing with knowledge of the existence of the
contract. Inconsistent dealing with a contract breaker by a third party, begun or continued after
the third party has notice of the contract, constitutes the tort of inducing a breach of contract. All
the ingredients of the tort of inducing a breach of contract were present in this case. DC
Thompson & Co Ltd v Deakin & Ors [1952] 2 All ER 361applied.
10. In all the circumstances, the award of damages for trespass of Le2,500 would be fair, reasonable
and adequate compensation to Abess.
Per Tejan JA:
11. The fact that the appellant had expended money on the land did not deprive Abess of its right to
possession of the land. Ramsden v Dyson (1866) LR 1 HL 129 applied.
Cases referred to
Allen v Flood [1898] AC 1
Bonham-Carter v Hyde Park Hotel [1948] 64 TLR 177
Canas Property Co Ltd v K L Television Services Ltd [1970] 2 All ER 795; [1970] 2 QB 433
Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048
Creery v Summersell and Flowerdew & Co Ltd [1949] Ch 751
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Croft v Lumley (1858) 6 HL Cas 672
Davenport v The Queen (1877-78) LR 3 App Cas 115
DC Thompson & Co Ltd v Deakin & Ors [1952] 2 All ER 361
Edward Ramia Ltd v African Woods Ltd [1960] 1 All ER 627
Emerald Construction Co Ltd v Lowthian & Ors [1966] 1 All ER 1013
Jones v Carter (1846) 15 M&WM 718
MacFoy v United Africa Company Ltd [1962] AC 152
Matthews v Smallwood [1910] 1 Ch 777
Ramsden v Dyson (1866) LR 1 HL 129
Segal Securities Ltd v Thoseby (1963) 1 QB 887
Stool of Abinabina v Chief Kojo Enyimadu [1953] AC 207
Srimati Bibhabati Devi v Kumar Ramendra Narayan Roy [1946] AC 508
United Australia Ltd v Barclays Bank Ltd [1941] AC 1
Windmill Investments (London) Ltd v Milano Restaurant Ltd (1962) 2 QB 373
Yachuk & Anor v Oliver Blais Co Ltd [1949] AC 386
Legislation referred to
Agricultural Reserves Act 1863 s 8 [Aust]
Conveyancing and Law of Property Act 1881 s 14 [UK]
Gold Coast Concessions Ordinance ss 12, 13(11) [Ghana]
Imperial Statutes (Law of Property) Adoption Act (Cap 18)
Interpretation Act 1961 ss 3, 11
Leasing Act 1866 s 8 (Australia)
Law Reform (Miscellaneous Provisions) Act (Cap 19) s 4
Provinces Act (Cap 60) s 2(1)
Provinces Land Act (Cap 122) ss 2, 3, 4, 9
Other sources referred to
Cheshire’s Modern Law of Real Property [6th Ed] p183; [11th Ed] pp 424, 425
Woodfall on Landlord and Tenant [27th Ed] at p 877
Appeal
This was an appeal against the majority decision of the Court of Appeal and the trial judge which
found that the appellant had induced the second respondents to breach its lease agreement with the
first respondent. The first respondent also cross appealed to recover possession of the land which it
had leased. The facts appear sufficiently in the judgments of Cole CJ and Livesey-Luke JSC.
Mr George Gelaga-King for the appellant.
Mr Eugene Cotran for the first respondent and Mr Davies for the second respondents.
COLE CJ: My Lords, the portion of land in dispute in this appeal is situated at Bo in the Kakua
Chiefdom in what was in the old days the Protectorate, but now, the provinces of Sierra Leone. The
site was of great commercial value or at least had great potential commercial value. I shall hereafter
refer to it as “ the land”. Being situated in the Provinces the land was and is still subject to the
provisions of the Provinces Land Act (Cap 122) of our laws. I shall hereafter refer to it as “the Act”.
By s 2 thereof, the Act should be read and construed as one with the Provinces Act (Cap 60). I have
mentioned this because of the fact that both the appellant and the first respondent are non-natives.
The expression “non-native” is defined in s 3 of the Interpretation Act 1961 (No 46 of 1961, which
is the Act relevant to this appeal) to mean “any person other than a native”.
The same Interpretation Act by that same section defines “a native” as being:
“any person who is a member of a race, tribe or community settled in Sierra Leone (or the
territories adjacent thereto) other than a race, tribe or community—
(a) which is of European or Asiatic origin; or
(b) whose principal place of settlement is in the Western Area”.
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The Provinces Act (Cap 60) does not define the expression “non-native”, but it does define the
expression “native”. That definition which is contained in s 2(1) thereof states that—
“native” means any member of the aboriginal races or tribes of African ordinarily resident
within the Provinces or within the territories adjacent thereto outside Sierra Leone”.
Under the Act all land in the provinces is vested in the Tribal Authorities who hold such land
for and on behalf of the native communities concerned. “Tribal Authority” is defined to mean:
“the Paramount Chief, the Chiefs, the councillors, and men of note, or sub-chiefs and their
councillors, and men of note”.
The second respondents fall within this definition.
By s 3 of the Act a non-native cannot occupy land in the Provinces unless he first obtains the
consent of the Tribal Authority as well as the approval of the District Commissioner to his occupation
of such land. As a matter of law, no non-native can occupy land in the Provinces except under and
in accordance with the Act. Let me here and now state that it is my considered view that from the
whole tenor of the Act the legislature intended to confer just as great a benefit on non-natives who
wish to hold land in the Provinces as on the Tribal Authorities who, as I have already stated, hold
such lands on trust for the native communities. On a proper construction of the Act, I hold the view
that non-natives holding land of the Tribal Authorities under and by virtue of the Act are meant to
have their tenancies not only regulated but also made secure. At the same time the Act protects Tribal
Authorities against unlimited squatting.
By a lease dated 16 May 1962, the second respondents leased to the first respondent:
“All that piece or parcel of land situate at Bo in the Kakua Chiefdom of the Bo District of the
Protectorate of Sierra Leone the boundary whereof commencing at a Property Beacon marked
AA1 which beacon is 130 ft on a bearing of 150 degrees 45 minutes to Property Beacon marked
AA2; thence on a distance of 87.0 ft on a bearing 240 degrees 45 minutes is Property Beacon
marked AA3; thence on a distance of 130.0 ft on a bearing 328 degree 06 minutes to Property
Beacon marked AA4; thence on a distance of 93.0 ft with a bearing of 60 degrees 40 minutes
to Property Beacon marked AA1, which is the point of commencement thus enclosing the area
of 0.2685 acre of the same several dimensions little more or less as the same premises or more
particular delineated and shown edged RED on the Cadastral plan No. LS/471/58 attached,
which piece or parcel of land for great clearness and so as not to restrict or enlarge the
description hereinbefore contained is delineated on the plan attached here t o and thereon
coloured RED together with the buildings and other fixture and fittings now the room and
specified in the schedule hereto, TO HOLD the said premises hereby unto the format from the
16th of May 1962, for the term of the seventy five years yielding the paying therefore during
the said term the yearly rent of Le65.00 (Le130) in the manner hereinafter set forth”.
I shall hereafter refer to it as “the lease”. The lease is Exhibit B. No question arises here that the
lease was not obtained with the prior consent of the Tribal Authority and the prior approval of the
District Commissioner. Although the term demised is said to be seventy-five years, yet by virtue of
s 4 of the Act the first respondent’s tenancy could not exceed a term of fifty years. I do not think that
the term stated in the lease by exceeding the statutory term in any way affects the validity of the lease
and I so hold. In any case this point was never at any stage raised nor was it ever made on issue.
It was amongst other things mutually agreed between the parties to the lease that if the lease
was not registered within sixty days of its execution in the office of the Registrar-General in Freetown
then the lease was voidable at the option of either party.
Section 9 of the Act provides as follows:
“Every deed creating a tenancy of land shall be voidable by either party, unless it—
(a) is executed in the presence of two witnesses by the lessor before the District Commissioner of
the district in which the land is situated; and is executed in the presence of two witnesses by the
lessee or his attorney or his agent before a Magistrate; and
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(b) has endorsed upon it certificates of execution in their presence signed respectively by the
District Commissioner and the Magistrate before when it was executed; and
(c) provides that the lessee shall not sublet or assign him interest thereunder except with the consent
of the Tribal Authority with approval in writing of the District Commissioner, provided that
such consent shall not be unreasonable withheld; and
(d) contains stipulations with regard to all the matters set out in rule 3 of the Schedule to this Act;
and
(e) is registered within sixty days in the office of the Registrar-General”.
It should at once be noted that what both the Act and the lease confer is the right of avoidance
of the lease in certain specified circumstances. It is quite clear that the Act does not make a lease void
ab initio or invalid if the provisions of Section 9 of the Act are not complied with.
To go back to the facts. The lease, though executed on 16 May 1962, was due to some technical
reasons concerning the plan to be attached to the lease, not registered within sixty days as required
by s 9(e) of the Act nor did it comply with s 9(a). The lease was in fact registered on or about 27
November 1962. According to Exhibit J which is dated 28 December 1962, the District Officer
acknowledged receipt of a registered copy of the lease. At that date he must or ought to have been
aware that certain provisions of s 9 of the Act had not been complied with. It is my considered view
that knowledge of the District Officer (formerly District Commissioner) of any non-compliance with
the provisions of the Act was in the circumstance also knowledge of the second respondents. I am of
the opinion that the whole structure not only of the Act but also of the Provinces Act (Cap 60) (with
which, as I have already pointed out, it should be re ad as one) shows that the District Officer
(formerly District Commissioner) is legally the main pivot on which the whole of the administration
of the districts in the Provinces and all that went with them revolves.
With this knowledge of non -compliance by the first respondent not only did the second
respondents allow the first respondent to take possession of the land and to spend considerable sums
of money on its improvement but it also received rents in respect of the land in the years 1962 and
1963. I am satisfied on the evidence that the second respondents did receive the full rent stipulated
in the lease for the years 1962 and 1963 in spite of the fact that the commencement date of the lease
was 16 May 1962.
By Exhibit V2 dated 20 January 1964, the second respondents wrote to the first respondent as
follows:
“NOTICE OF RE-ENTRY
TO ABESS ALLIE Lebanese Trader and Ex Diamond Dealer of Bo Kakua Chiefdom Bo
District, South Western Province Sierra Leone
OR
His Attorney NAYEF ABESS of 22 Kissy Street, Freetown OR
Other interested persons.
WE the undersigned chief and members of the Tribal Authority Kakua Chiefdom for and on
behalf of the Paramount Chief and Tribal authority for the said Kakua Chiefdom Bo District give
you notice as follows:
The lease dated the 16th day of May, 1962 registered as No 168 in value 50 at Page 5 in the Register
of Leases kept in the Registrar General’s office in Freetown and made between the Paramount Chief and
Tribal Authority of Kakua Chiefdom aforesaid of the one part and YOURSELF of the other part under
which you hold a piece plot or parcel of land situate lying and being at the angle of Bo Bye Pass and
Fanton Roads in Bo Town Kakua Chiefdom aforesaid contains a proviso as follows:
“Provided always that if this indenture is not registered within SIXTY days of its execution in
the office of the Registrar-General in Freetown then the said deed shall be voidable at the option of
either party to the same”.
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You have failed to register the said lease within sixty days of its execution and have so committed a
breach of the said Proviso or condition contained in the said lease.
You have also failed to execute the aforesaid lease.
In view of the matters stated above we the said lessor have decided to avoid and determine the said
lease and have therefore this day exercised our right to re-entry on the land in respect of which the said
lease was made and henceforth the said lease shall determine.
Dated the 20th day of January 1964.
(Sgd) Abu Baimba III Paramount Chief Kakua Chiefdom. (Sgd) Mr Mokuwa 1st Speaker
Kakua Chiefdom. (Sgd) Lahai Magao 2nd Speaker Kakua Chiefdom. Approved (Sgd) DK Jenkins
District Officer”.
Exhibit V2 was issued after the second respondent had received rents although the lease had
not been avoided and was therefore valid and subsisting. Mr Gelaga-King concedes that at least up
to 20 January 1964 (the date of Exhibit V2) the lease was still valid. I shall deal with what I consider
to be the legal effect of this at a later stage. Proceeding on with the facts, on that same date, i.e., 20
January 1964 the first respondent by letter bearing that date, Exhibit H, forwarded to the District
Commissioner, Bo, a cheque covering payment of rent for the land as well as three others. The cheque
was returned. No reason was given for its return.
In the meantime, the appellant had come into the picture because I find that by a letter dated 28
January 1964, Exhibit V1, the District Commissioner was forwarding to the appellant for information
and for record purposes a copy of Exhibit V2. Also, on 31 January 1964, the second respondents by
Exhibit W leased certain lands at Bo in the Kakua Chiefdom to the appellant. Those lands included
the area leased to the first respondent. From the evidence it is clear that the appellant had been
involved in the land long before January 1964. It is interesting to note that this lease to the
appellants, Exhibit W, contains a provision regarding registration similar to that contained in Exhibit
B. I find the District Commissioner on 30 June 1964 writing Exhibit T to the appellant in these terms:
“Dear Sir,
LEASE OF LAND TO AGIP (S.L.) LTD
I have to refer to the above subject and to forward herewith original and copy for lease duly
registered for your retention.
2. Please acknowledge receipt.”
It is reasonable to conclude that the District Commissioner registered or caused to be registered
the lease granted to the appellant. Why then did he not register or cause to be registered the lease to
the first respondent?
In pursuance of Exhibit W the appellant took possession of the area called for by Exhibit W
which, as I have said, included the land in question as well as all the improvements which the
appellants found thereon.
The first respondent then consulted a solicitor and on 13 July 1966 the first respondent
commenced legal proceedings in the High Court.
Although the lease Exhibit B which was the subject matter of the action and of the appeal was
granted to Abess Allie we find the writ of summons was issued in the name of “Abess Allie
Mohamed Edmask by his Attorney Adnan Nayef Abess Al Allie” as plaintiff. The relevant Power of
Attorney was put in evidence at the trial. It was Exhibit A and was made at Beirut on the 19 April
1966. On perusal thereof it would be seen that the person appointing Adnan Nayef Abess Al Allie as
his Attorney was not Abess Allie as described in Exhibit B as the lease but one Abess Allie Mohamed
Edmask. Learned counsel for the appellant tried to make the point before us that the Abess Allie
described in Exhibit B as the lessee could not be one and the same person as Abess Allie Mohamed
Edmask referred to in the Power of Attorney and in whose name the action was brought. In effect he
was saying that the first respondent had no locus standi in this matter. We stopped him from pursuing
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the point as we felt it was too belated. The action as well as the trial had proceeded on the footing
that Allie Abess and Abess Allie Mohamed Edmask were one and the same person. The position
appeared to have remained the same before the Court of Appeal. That disposes of the point.
By his amended statement of claim the first respondent claimed against the appellant’s and the
second respondents’ possession of the land. As against the appellant he claimed damages for trespass
to the land for inducing a breach of contract between the second respondents and himself. He also
claimed against the second respondents damages for breach of covenant for quiet enjoyment.
There was not at time any claim for special damages.
The learned trial judge after reviewing the evidence found:
(i) that the lease between the first and second respondents was a valid subsisting lease which
had not been avoided or terminated according to law;
(ii) that the failure to register the lease entitling the second respondents to claim that the lease
was voidable was waived by the second respondents’ receipt of rents due under and in
terms of the said lease.
The learned trial judge then proceeded to make the following awards:
(i) damages for breach of covenant for quiet enjoyment: Le2,500.00;
(ii) refund of expenses during negotiations, shake hand and refund of two years rent :
Le6,260.00;
(iii) damages for trespass: Le20,000.00;
(iv) damages for inducing a breach of contract: Le5,000.00;
(v) damages in lieu of recovery of possession: Le9,000.00.
Against this judgment the appellant appealed to the Court of Appeal. That court (Sir Samuel
Bankole Jones P, GF Dove-Edwin and JB Marcus-Jones JJA) held that the learned trial judge was
wrong in law in coming to the conclusion that the lease was a valid subsisting lease which had not
been avoided or terminated according to law. Accordingly, they held that the first respondent was
not entitled to possession or damages in lieu thereof. By a majority decision of two to one (Dove-
Edwin JA, as he then was, dissenting) that court agreed with the findings of fact by the learned trial
judge that the appellant induced a breach of contract between the first and second respondents “albeit
a voidable one”. The Court of Appeal awarded exemplary damages of Le30,000 thereby varying the
award under this head of the High Court. The Court of Appeal also awarded special damages of
Le15,390 which again was a variation of the damages awarded by the learned trial judge. Dove-
Edwin JA, naturally, in view of his opinion, awarded no damages but allowed the appeal. It is against
the judgment of the learned trial judge as well as that of the majority decision of the Court of Appeal
that this appeal arises.
There is also a cross -appeal by the first respondent as to recovery of possession. It is the
contention of the first respondent in this regard that if the proposition that the lease was not avoided
or terminated according to law as the learned trial j udge found, was right in law, then the first
respondent was entitled to an order for recovery of possession.
It is therefore of the essence of this appeal that one of the first questions that should be disposed
of is whether the lease, Exhibit B, was properly terminated or avoided according to law.
In this regard it should be remembered that s 9 of the Act confers a right that a lease can be
avoided at the option of either party in certain circumstances. It follows therefore that until a lease
made under the provisions of the Act is avoided in accordance with law, such a lease remains valid
and subsisting.
The Imperial Statutes (Law of Property) Adoption Act (Cap 18) of our Laws came into force
on 1 January 1933. It was an Act passed to adopt and apply to Sierra Leone certain statutes of the
British Parliament relating to real and personal property, and to make provisions for amending the
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law of real and personal property. This Act applied to the then Colony of Sierra Leone, amongst
others, certain sections of the Conveyancing and Law of Property Act 1881. One of the sections so
applied is s 14 which imposes restrictions on, and relief against, forfeiture of leases. The lease in
question was made in May 1962. It is clearly stated in s 11 of the Interpretation Act 1961 (No 46
of 1961) as follows:
“11. No Act passed before 1 July 1953 shall apply to the Provinces unless it is so provided by
the Act itself or is extended thereto by an Act”.
Since the Imperial Statutes (Law of Property) Adoption Act (Cap 18) at the material time did
not apply to the Provinces, the provisions of s 14 thereof cannot be relied upon. I do hope the
authorities will look into this matter within the near future because in the present constitutional set-
up such a situation would appear highly discriminatory.
The next point I think that should be considered is the question of waiver. Where a person
entitled to anything expressly and in terms gives it up, it is said to be express waiver. It is implied
when the person entitled to anything does acquiesce in something else which is inconsistent with that
to which he is so entitled. One of the main questions in this appeal therefore is whether there was
waiver in law. I hold the view that the second respondents’ acceptance of rent with knowledge of the
breaches complained of in exhibits V2 effected in law a waiver. I consider the propositions of law
set out with approval in this regard in the case of Central Estates (Belgravia) Ltd v Woolgar (No 2)
[1972] 1 WLR 1048 as sound and I would adopt and apply them. At pages 1051 and 1052 Lord
Denning MR, said, inter alia:
“The cases on waiver are collected in the notes to Dumper’s case (1603) 78 Eng Rep 1042 in
Smith’s Leading Cases, 13th Ed (1929), pp 39-44. Those notes show that the demand and
acceptance of rent has a very different effect according to how the question arises. If it is sought
to say there is a new tenancy by acceptance of rent, for instance, after a notice to quit has expired
the question always is, as Lord Mansfield said: “Quo animo the rent was received and what the
real intention of both parties was”. See Doe d Cheny v Batten (1775) 1 Cowp 243, 245 and
Clarke v Grant [1950] 1 KB 104. But if it is sought to say that an existing lease continues in
existence by waiver of forfeiture, then the intention of the parties does not matter. It is sufficient
if there is an unequivocal act done by the landlord which recognises the existence of the lease
after having knowledge of the ground of forfeiture. The law was well stated by Parker J in
Matthews v Smallwood [1910] 1 Ch 777, 786, which was accepted by this court in Oak Property
Co Ltd v Chapman [1947] 1 KB 886, 896:
‘It is also, I think reasonably clear upon the case that whether the act, coupled with the
knowledge, constitutes a waiver is a question which the law decided and therefore it is
not open to a lessor who has knowledge of the breach to say ‘I will treat the tenancy as
existing and I will receive the rent, or I will take advantage of my power as landlord to
distrain; but I tell you that all I shall do without prejudice to my right to re-enter, which I
intend to reserve’. That is a position which he is not entitled to take up. If, knowing of the
breach he does distrain or does receive the rent, then by law he waives the breach, and
nothing which he can say by way of protest against the law will avail him anything”.
I know that Harman J in Creery v Su mmersell and Flowerdew & Co Ltd (1949) 1 Ch 751,
said that in waiver of forfeiture ‘the question remains quo animo was the act done’. But that
statement was explained by Megaw J in Windmill Investments (London) Ltd v Milano
Restaurant Ltd (1962) 2 QB 373. He said at p 376, that it meant only that ‘It is a question of
fact whether the money tendered is tendered as, and accepted as rent … Once it is decided as a
fact that the money was tendered and accepted as rent, the question of its consequences as a
waiver is a matter of law’.
Similarly, Sachs J in Segal Securities Ltd v Thoseby (1963) 1 QB 887 said, at page 898: ‘It is
thus a matter of law that once rent is accepted a waiver results. The question of quo animo it is
accepted in forfeiture cases is irrelevant in relation to such acceptance’.
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So we have simply to ask: was this rent demanded and accepted by the landlord’s agents with
knowledge of the breach? It does not matter that they did not intend to waive. The very fact that
they accepted the rent with the knowledge constitutes the waiver’.”
Cairns LJ, at page 1056, puts it this way:
“I agree that the demand for and acceptance of rent by the landlords did effect a waiver of the
forfeiture. It is clear on the authorities that an unequivocal act is required to bring about a waiver.
When money is demanded as rent after the landlord knows of the facts giving rise to the
forfeiture and is paid as rent and accepted as rent, and then the law regards the demand and
acceptance as an unequivocal act. I regard this proposition as established by Matthews v
Smallwood [1910] 1 Ch 777, approved in this court in Oak Property Co Ltd v Chapman [1947]
1 KB 886 and I consider that if the decision of Harman J in Creery v Summersell and
Flowerdew & Co Ltd (1949) 1 Ch 751 can be supported, it must be on the basis suggested by
Megaw J in Windmill Investments (London) Ltd v Milano Restaurant Ltd (1962) 2 QB 373.
This being so, the state of mind of the landlord is irrelevant; and if he acts through an agent who
has actual or ostensible authority to demand and receive the rent, it does not seem to me that
the state of mind of the agent can be enquired into”.
That being the legal position, in my view, when the second respondents accepted rents, as is
clearly shown by Exhibits C1 and C2 and D, with knowledge of the breaches complained of, as
Exhibit J indicates, they waived any and all such breaches. Here the rents were paid and accepted
whilst there was in existence a valid subsisting lease.
The question of quo animo the rents were accepted does not therefore arise. The learned trial
judge in my view came to the correct conclusion in this regard. To hold otherwise would, in my view,
be repugnant to natural justice, equity and good conscience. Nor do I seriously think that such a
finding is incompatible either directly or by necessary implication with the Imperial Statutes (Law of
Property) Adoption Act to which I have already referred or any other Act applying to the Provinces.
It should not be forgotten that the Act more or less (with the emphasis on more) by s 9 imported,
without limitations as to the circumstances in which waiver can be exercised, certain English legal
and equitable notions into the land law of the Provinces. In construing the Act therefore this
indisputable fact has clearly to be borne in mine. I am satisfied that my construction does not run
contrary to the Act.
Before I deal with the consequences that flow from my finding in regard to the legal position I
would at this stage like to dispose of what I consider to be another very important issue in this appeal,
namely, whether there was inducement on the part of the appellant of the breach of contract contained
in Exhibit B. In this connection I am of the view that the propositions of law and practice laid down
in the case of Srimati Bibhabati Devi v Kumar Ramendra Narayan Roy [1946] AC 508 relating to
concurrent findings of fact contain good sense and I have no reason to depart from or modify or vary
them. These propositions, by way of reminder, are stated in these words:
“From a review of previous decisions of the Judicial Committee of the Privy Council the
following propositions are derived as to the present practice of the Board to decline to review
the evidence for a third time where there are concurrent judgments of two courts on a pure
question of fact, and as to the nature of the special circumstances which will justify a departure
from the practice:
(1) That the practice applies in the case of all the various judicatures whose final tribunal is
the Board.
(2) That it applies to the concurrent findings of fact of two courts, and not to concurrent
findings of the judges who compose such courts. Therefore, a dissent by a member of the
appellant court does not obviate the practice.
(3) That a difference in the reasons which bring the judges to the same finding of fact will not
obviate the practice.
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(4) That, in order to obviate the practice, there must be some miscarriage of justice or violation
of some principle of law of procedure. That miscarriage of justice means such a departure
from the rules which permeate all judicial procedure as to make that which happened not
in the proper sense of the word judicial procedure at all. That the violation of some principle
of law or procedure must be such an erroneous proposition of law that if that proposition
be corrected the finding cannot stand; or it may be the neglect of some principle of law or
procedure, whose application will have the same effect. The question whether there is
evidence on which the courts could arrive at their finding is such a question of law.
(5) That the question of admissibility of evidence is a proposition of law, but it must be such
as to effect materially the finding. The question of the value of evidence is not a sufficient
reason for departure from the practice.
(6) That the practice is not a cast-iron one, and the foregoing statement as to reasons which
will justify departure is illustrative only, and there may occur cases of such an unusual
nature as will constrain the Board to depart from the practice.
(7) That the Board will always be reluctant to depart from the practice in cases which involve
question of manners, customs or sentiments peculiar to the country or locality from which
the case comes, whose significance is specially within the knowledge of the courts of that
country.
(8) That the practice relates to the findings of the courts below, which are generally stated in
the order of the court, but may be stated as findings on the issues before the court in the
judgments, provided that they are directly related to the final decision of the court”.
In the present appeal I find no special circumstances, namely, any miscarriage of justice or any
violation of some principle of law or procedure nor do I consider it a case of an unusual nature on
this particular question, to justify a departure from this well-established practice. There is evidence
in support of the concurrent findings of both the trial court and the Court of Appeal on the issue of
inducement. I would not disturb these concurrent findings. As regards the issue of damages I shall
give due consideration to it later.
Having stated these propositions of law I now come to the question of the remedies sought. I
shall deal with the first which is recovery of possession. It having been established that the lease was
and is still valid and subsisting the first respondent had and still has a legal estate in the land prior in
time to that created to the appellant. The appellant took subject to that legal estate. The first
respondent is in those circumstances entitled to possession of the land. The first respondent has
shown in law a better title to that of the appellant. Furthermore, because of the concurrent finding of
fact, supported by law, that the appellant induced a breach of contract, which finding, as I have stated,
I will not disturb, the appellant cannot invoke equity to its aid. He who comes to equity must come
with clean hands. The learned trial judge therefore erred in awarding damages in lieu of an order for
recovery of possession. The first respondent was entitled to possession of the strength of his title. I
would therefore award the first respondent his claim for recovery of possession of the land the area
of which I have already set out in the course of this judgment. I would vary the judgment accordingly
and set aside the damages awarded.
I now turn to the question of damages. In this connection it is my opinion that where an appellate
court finds that an award is either erroneous or excessive, or based on wrong principles of law, or
because of any other good and sufficient reasons such award ought to be varied or set aside, that court
should and must interfere. Ofcourse where an appellate court varies an award such a variation must
be based on its own estimate of a proper award.
With regard to special damages I hold the view that the Court of Appeal went astray in awarding
this item.
It was never pleaded as it should have been done and the fact that no objection was raised does
not in any view cure this defect. Furthermore, it was never an issue raised before the Court of Appeal.
In these circumstances I would disallow this item awarded by the Court of Appeal.
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As regards the award of Le30,000 in respect of inducement by the Court of Appeal, I do feel
that it is most excessive. The learned trial judge’s award of Le5,000 is in my view exemplary enough.
I would set aside the award of Le30,000 made by the Court of Appeal and restore the trial judge’s
award, in this regard, of Le5,000.
The learned trial judge awarded a return by the second respondents of the customary shake-
hand of Le6,000 as well as the two years rent of Le260. In view of the fact that I would order recovery
of possession of the land I would disallow those two items and the learned trial judge’s judgment is
hereby varied accordingly.
I now come to the award of the trial judge of Le20,000 as damages for trespass. He did not give
any reason why he awarded such an enormous amount. Maybe he was greatly influenced by the fact
that recovery of possession was not being ordered. Since I am of the view that the first respondent is
in law entitled to recovery of possession, this award needs some reconsideration.
I agree that the trespass here is a continuing trespass and that the first respondent has been now
kept away from the use of the land for over nine years. I also take into consideration the fact that
because of the provisions of the lease granted by the second respondents to the appellant, Exhibit W,
as well as the oral evidence before the learned trial judge, the character of the land has substantially
been changed. I am aware that in order to perform the covenants stipulated in the lease, Exhibit B,
the first respondent would, because of the order for possession, have to expe nd money in
reconstructing the land. I also take into consideration the point of law that the object of an award of
damages is to put the party who has been injured, or who has suffered, in the same position as he
would have been in if he had not sustained the wrong for which he is now getting his compensation
or reparation. I have also considered the proposition that the appellant’s conduct has been calculated
to make a profit for itself and that in such a case it is the object of the law to teach the appellant that
tort does not pay. This, in my view, is certainly not a case where this court can say to the first
respondent “you are technically right, but morally wrong ”. Taking all the circumstances into
consideration, however, I would reduce the award of Le20,000 to Le10,000. The learned trial judge’s
award in the regard is hereby varied accordingly.
With regard to the question of interest missed under s 4 of the Law Reform (Miscellaneous
Provisions) Act (Cap 19), it is my considered view that it is a matter which should have been raised
before the court of trial. I do not think we can at this stage properly interfere.
In my judgment the final results of this appeal should therefore be as follows:
The judgment of the Court of Appeal is hereby reversed and set aside. The cross appeal
succeeds.
The judgment of the High Court is upheld and affirmed subject to the following:
The order of the learned trial judge awarding the first respondent damages in lieu of an order
for recovery of possession is hereby set aside and an order for recovery of possession of the land in
favour of the first respondent against the appellant and the second respondents substituted therefore
for the residue of a term of fifty years from the 16 May 1962.
I would add that if the sum of Le9,000 awarded by the High Court has been paid it should be
refunded.
The order of the learned trial judge ordering the return by the second respondents to the first
respondent of the customary shake-hand of Le6,000 as well as the two years rent paid of Le260 is
hereby set aside and, if already paid, should be refunded.
The order of the learned trial Judge awarding Le20,000 for damages for trespass is hereby
varied to Le10,000. The difference, if already paid, should be refunded.
FORSTER JSC: My Lords, the facts of this case are set out in the judgment of my brother the
Honourable Chief Justice which I have had the advantage of reading and I need not repeat them. I
agree with him that the appeal should be allowed. I also agree with him that the cross-appeal
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succeeds, but wish to add something about one issue which, in my opinion, is of great interest and
importance in the case; that is the doctrine of waiver.
Lord Atkin, in United Australia Ltd v Barclays Bank Ltd [1941] AC 1 at 29 and 30, said:
“It is essential to bear in mind the distinction between choosing one of two alternative remedies
and choosing one of two inconsistent rights … if a man is entitled to one of two inconsistent
rights, it is fitting that when, with full knowledge, he has done an unequivocal act, showing that
he has chosen the one, he cannot afterwards pursue the other which, after the first choice, is by
reason of the inconsistency no longer his to choose”.
Thus, a lessor who has brought ejectment proceedings by way of forfe iture for breach of
covenant cannot afterwards sue for rent: see Jones v Carter (1846) 15 M & WM 718. Anything,
therefore, which exhausts or extinguishes one of the causes of action, destroys the other also.
Counsel on both sides referred us to the case of Segal Securities Ltd v Thoseby (1963) 1 QB
887, on different points, but the relevance of this case in the appeal before us, in my opinion, is
confined to limiting the effect of the waiver to breaches occurring prior to the issuing of the Notice,
Exhibit V2, dated 20 January 1964, inter alia, that:
“the demand for rent, by letter dated 25 June 1962, although written ‘without prejudice’,
operated as a waiver of any right of forfeiture for the defendant’s breach of the covenant up to
the tine when the Notice of 8 June 1962 was issued, but did not operate as a waiver of the later
breach continuing between July 6, when the time set for the notice expired, and 7 August
1962, when the writ was issued …”.
The breaches complained of in Exhibit V2, took place before 28 November 1962, the day after
the Lease, Exhibit B, was registered. Rent for both 1962 and 1963 under the said lease was tendered
and received by the second respondents on 7 March 1963 as evidenced by Exhibits C1 and C2
respectively.
The case of Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048, not cited
or referred to by any counsel before us, has been considered and applied quite correctly, in the
judgment of my brother, the Honourable Chief Justice. I wish to mention another case, much older
and one which, I think, merits more than cursory reference here. It is the case of Davenport v The
Queen (1877-78) LR 3 App Cas 115. It went up on appeal from the Supreme Court of Queensland
to the Judicial Committee of the Privy Council in 1877. In that case, the appellant predecessor in title
became lessee of crown lands under the Agricultural Reserves Act 1863 and the Leasing Act 1866,
but failed to cultivate and improve his allotment as required by the former Act. Section 8 of the
Agricultural Reserves Act 1863 provided that:
“if any person selecting lands in Agricultural Reserve shall fail to occupy and improve the same,
as required by s 7 of this Act, then the right and interest of such selector to the land shall cease
and determine.”
Section 8 of the Leasing Act 1866 also states:
“Land in Agricultural Reserves, if taken up on lease, shall be subject to the same conditions
as to cultivation, etc. as if they were selected by purchase.”
After becoming aware of the non -improvement, the Government received rent for the
allotment, but a notice was issued to the effect that ‘Rent which may be received upon selections as
may have been forfeited by operation of law shall be deemed to have been received conditionally,
and without prejudice to the right of the Government to deal with the same according to the
provisions contained in the Agricultural Reserves Act 1863, on that behalf’. In an action brought to
recover the land, it was held, (reversing the judgment of the court below) that, notwithstanding the
notice, the receipt of rent operated as a waiver of the forfeiture. In disposing of the Davenport case,
the Judicial Committee considered and applied the case of Croft v Lumley (1858) 6 HL Cas 672,
cited to us, incidentally, by counsel for first respondent. In that case, the facts were much more
favourable to the contention that there was no waiver than in the Davenport case. The tenant there
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tendered and paid rent due on the lease after the landlord had declared that he would not receive it as
rent under the existing lease, but merely in compensation for the occupation of the land. The opinion
of all the judges except one, was that the receipt of the money under these circumstances operated as
a waiver. One of the learned judges, Williams J, gave his opinion thus:
“It was established as early as Pennant’s Case (1596) 3 Co Rep 64a, that if a lessor, after notice
of a forfeiture of the lease, accepts rent which accrues after, this is an act which amounts to the
affirmance of the lease, and a dispensation of the forfeiture. In the present case, the facts, I think,
amount to this: that the lessor accepted the rent, but accompanied the receipt with a protest that
he did not accept it as rent, and did not intend to waive any forfeiture. But I am of the opinion
the protest was altogether inoperative as he had no right at all to take the money unless he took
it as rent: he cannot, I think, be allowed to say that he wrongfully took it on some other account,
and if he took it as rent, the legal consequences of such an act must follow, however much he
may repudiate them”.
In the Davenport case, as already stated, the rent was received as rent, with, at most, a protest
that it was received conditionally, and without prejudice to the right to deal with the land as forfeited.
The Judicial Committee said that it was not necessary for it to invoke this opinion of Williams J to
its full extent in the case before them, but it was enough for them to say that where money was paid
and received as rent under a lease, a mere protest that it was accepted conditionally, and without
prejudice to the right to insist upon a prior forfeiture, cannot countervail the fact of such receipt.
I join the Honourable Chief Justice in his hopeful pleas for a more uniform system of land
ownership in our unified sovereign independent state of Sierra Leone, and finally, I am in agreement
with the order proposed by him. The first respondent’s legal title to the land was never extinguished
and the findings of the learned trial judge that the appellant both trespassed on that land and induced
the second respondents to terminate Exhibit B, for which finding, in my opinion, there was abundant
evidence, make it inequitable, to say the least, for any other than an order for recovery of possession
to be made in favour of the first respondent. It may be that the first respondent will find himself
saddled with a White Elephant or a Trojan Horse, but be what it may, quicquid plantatur solo, solo
cedit.
DAVIES JA: I have had the advantage of reading the judgment of His Lordship the Chief Justice
C.O.B. Cole, with whose reasoning and conclusions I agree. I, however, wish to add a few words of
my own.
Negotiations for the lease began as long ago as 1961. The lease (Ex B) was not executed until
16 May 1962. On 14 December the first respondent forwarded to the District Officer Bo, a copy of
the duly registered lease and this was acknowledged by the District Officer one DK Jenkins, by letter
dated 28 December 1962 (Ex J). Sometime in 1964, the second respondents sought to determine the
lease (Ex B) on the ground that it has not been registered within the prescribed period of 60 days.
The first respondent by his solicitor, Mr JER Candappa, wrote to the District Officer as follows (Ex
Z dated 13 February 1964):
“Dear Sir,
Your letter L/3/263 dated 25 January 1964, addressed to Mrs. Abess Allie c/o Abess Brothers
and Sons Limited, Freetown together with what has been called a notice of Re-entry addressed
among others, to Mr Naïf Abess has been handed to me for reply.
Perusing both the Notice of Re-entry and the lease, I find that the registration for the Lease
dated 16 May 1962, in face took place on 27 November 1962, technically in breach of section 9(e)
of the Provinces Land Act, Chapter 122 but under the following circumstances.
The plan attached to the Deed which the Tribal Authority signed and therefore is an intrinsic
and necessary part of the Deed itself, was a plan which does not bear the counter signature of the
Director of Surveys and Lands as is required by section 15 of Ordinance 14 of 1960 amending section
25(1) of the Registration of Instruments Ordinance Cap. 256. When this deed was presented for
registration, it was rejected on this score and the plans were sent to the Director of Surveys and
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Lands for the counter signature. This took time hence the delay in registration, due to an unforeseen
and supervening impossibility. You will agree that if the document had been prepared by a solicitor
instead of in the office of the Tribal Authority, this would not have arisen. The document having been
prepared by the Tribal Authority I do not see how they could complain on this score.
As for the failure of Abess Allie to sign the lease the Tribal Authority is no doubt aware that
although the Agreement for the lease had been entered into and payments including shake hand had
been received by the Tribal Authority it was physically impossible to get Mr Abess Allie to sign the
lease as at the time the lease became available for signature, Mr Abess Allie had been deported from
Sierra Leone, leaving Mr Naif Abess as His Attorney.
In law, this would not be a defect making the lease void or even voidable because the lease itself
was drawn up in pursuance of an agreement for which payment had been received.
That such an agreement was not only entered into but acted upon is clear from the fact that
throughout the material period since before and after execution of the lease and up to date and
including the whole of 1964, payments of rent due on the lease have been received by the Tribal
Authority via the appropriate receiving authority. In these circumstances, the Tribal Authority is
bound in equity by the covenant.
I trust this matter could be settled without re-course to law.
Yours faithfully
(Sgd.) J.E.R. Candappa.”
By this time, the second respondents had entered into negotiations with the appellant for the
lease of the said land. On 28 January 1964, the District Officer, Bo wrote to the appellant (Ex V1 II
dated 28 January 1964) in the manner following:
“Gentlemen,
I am requested by the Kakua Tribal Authority to forward to you for your information and for record
purposes the attached notice of the Tribal Authority of re-entry in respect of the piece of land held under
lease made to Abess Allie, now in Lebanon.
I am, Gentleman,
Your obedient servant
(Sgd.) D.K. Jenkins Ag. District Officer”
Three days after the District Officer’s letter to the, appellant, i.e. on 31 January 1964, the second
respondents demised the same piece or parcel of land with title over to the appellants.
There is no doubt, as Marcus-Jones JSC observed in his judgment, that the appellants are a
wealthy petrol company with large financial backing. Had they not intervened, the second
respondents would never have sought to avoid the lease (Ex B). I am beginning to wonder why it
became necessary to forward to the appellants for information or for record purposes a copy of the
“Notice of the Tribal Authority for re-entry in respect of the piece of land held under lease made to
Abess Allie, now in Lebanon.” The only reason which presents itself to me very forcibly is that it
was in pursuance of a pending deal between the appellant and the second respondents aided by the
District Officer. In his judgment already referred to, the learned Chief Justice said, “the District
Officer (formerly District Commissioner) is legally the main pivot on which the whole of th e
administration of the Provinces and all that went with it revolves.” I agree with the learned Chief
Justice absolutely. I should have though that what a prudent District Officer would have done after
the receipt of Mr Candappa’s letter (Ex Z) was to refer the matter to the Law Officers for legal advice.
This he never did. All he offered to be concerned about was to send a copy of the Notice of Re-
entry to the appellant as if to say “We have cleared the way. We may now complete the deal”. As I
have already stated, three days after the letter forwarding the notice of Re-entry, the land was demised
to the appellant.
The learned trial judge in his judgment found as follows:
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“I am satisfied that the plaintiff (i.e. the first respondent in this court) had adduced sufficient
evidence to support para 7 of the Statement of Claim:
(a) that the lease between the plaintiff and the second defendants was a valid subsisting lease
which had not been avoided according to law;
(b) that the alleged failure to register entitling the second defendants to claim that the lease was
voidable was waived by the second defendants by receipt of rent due under and in terms of the
lease.”
I agree with the findings of the learned trial judge. It has been established that the lease was and
is still valid and subsisting and that the first respondent had and still has a legal estate in the land prior
to that created in favour of the appellants. The appellants took subject to that prior legal estate. In the
circumstances, the first respondent is entitled to possession of the land.
LIVESEY LUKE JSC: By virtue of the Provinces Land Act (Cap 122) of the Laws of Sierra Leone,
Chiefdom Councils in the Provinces, may with the consent of the District Commissioner, grant leases
of land in their Chiefdoms to “ non-natives” for periods of up to 50 years under the terms and
conditions laid down in the Act.
On 16 May 1962, the Paramount Chief and the Chiefdom Councillors of Kakua Chiefdom, Bo
District, (the second respondents in this appeal) granted a lease of land situated at Bye Pass Road, Bo
to Abess Allie (the first respondent in this appeal for a period of 75 years (hereafter referred to as the
Abess lease). The Abess lease was by deed and was executed by the Paramount Chief and the
principal men of the Chiefdom. The consent of the District Commissioner was duly endorsed
thereon. But the lease was not executed. On 27 November 1962, the Abess lease was registered at
the office of the Registrar General, Freetown. By notice dated 20 January1964 and served on the
agents of Abess Allie, Kaku Chiefdom purported to avoid and determine the Abess lease in exercise
of powers under the proviso to clause 4 of the Abess lease, on the grounds that Abess Allie had failed
to execute the lease and had failed to register it within 60 days from the date of execution. Prior to
the service of the notice, the lessee executed some works on the land.
On 31 January 1964 the Paramount Chief and the Chiefdom Councillors of the said Chiefdom,
with the consent of the District Commissioner, granted a lease of the said land together with another
small piece of land to Agip (Sierra Leone) Limited (the appellant in the appeal) for the term of 21
years (hereafter referred to as the Agip lease). The Agip lease was by deed and was executed by the
Paramount Chief and Principal men of the Chiefdom and the consent of the District Commissioner
was endorsed thereon. The lease was registered in the office of the Registrar-General, Freetown on
19 February 1964.
The parties will be referred to hereafter as “Kakua Chiefdom”, “Abess” and “Agip.”
Thereafter Agip proceeded to construct a petrol filling station on the land. On 28 May 1965,
while the construction was in progress, the agent of Abess wrote Agip informing them that they were
trespassing on Abass land. But Agip continued with the construction. On 13 July 1966, Abess issued
a writ of summons against Agip and the Kakua Chiefdom claiming damages for trespass against
Agip and damages for breach of covenant for quiet enjoyment against Kakua Chiefdom. An order
for amendment of the writ was made on 6 May 1968. In the amended writ Abess claimed recovery
of possession of the land, damages for trespass to land and damages for inducing a breach of contract
against Agip and damages for breach of covenant for quiet enjoyment against Kakua Chiefdom.
The action was tried by Browne-Marke J. According to the pleadings, the main issues at the
trial were whether Kakua Chiefdom had properly and validly avoided the Abess lease; whether Kakua
Chiefdom had waived their right to avoid the Abess lease by acceptance of rent and whether Agip had
induced a breach by Kakua Chiefdom of the Abess lease.
Browne-Marke J reserved judgment on 1 May 1969 and after an inexplicable delay of some 14
months gave judgment on 16 June 1970 for Abess. On the issue of the avoidance of the lease,
Browne-Marke J held that the Abess lease was a valid lease and that it had not been avoided or
terminated.
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On the issue of waiver, he held that the right to avoid the Abess lease had been waived by Kakua
Chiefdom by the receipt of rent. On the issue of inducement of a breach of contract, he held that Agip
had induced a breach of the Abess lease by Kakua Chiefdom. The learned judge accordingly made
the following order: damages for breach of covenant for quiet enjoyment Le2500; refund of expenses
during negotiations and shake hand Le6,000; refund of two years rent Le.260; damages for trespass by
Agip Le20,000; damages for inducing breach of contact Le. 5,000; damages in lieu of recovery of
possession Le9,000.
Agip appealed to the Court of Appeal against the decision, complaining against the findings of
trespass and inducement and the measure of damages awarded. Kakua Chiefdom also appealed
complaining against the finding of breach of covenant for quiet enjoyment and the order for refund
of Le6,000 expense. Abess also cross-appealed, complaining against the failure of the judge to order
recovery of possession and the measure of damages awarded.
Thus, all the parties to the action were in one way or another dissatisfied with the decision of
Browne-Marke J. The appeal was heard by the Court of Appeal consisting of Sir Samuel Bankole
Jones P, Dove- Edwin JA and Marcus-Jones JA on 1 March 1971 and subsequent days. Judgment
was delivered on 30 July 1971 varying the order of Browne-Mark J. (Dove-Edwin JA dissenting). In
the majority judgment delivered by Marcus-Jones JA it was held that the Abess lease had been
properly avoided and terminated and that the right of Kakua Chiefdom to avoid the Abess lease had
not been waived by acceptance of rent. The majority of the Court of Appeal also held that Agip had
induced a breach of contract by Kakua Chiefdom. The Court ( majority) refused on order for
possession and varied the award of damages to the extent: damages for inducing a breach of contract:
Le30,000, Special Damages: Le15,390.
No damages were awarded for breach of contract or breach of covenant for quiet enjoyment.
This is not surprising in view of the finding of the majority that Kakua Chiefdom had not committed
a breach of contract by terminating the Abess lease.
Dove-Edwin JA agreed with the majority that the Abess lease had been properly avoided and
terminated and that Kakua Chiefdom had not waived their right to avoid the Abess lease. He however
disagreed with the majority on the question of inducing a breach of contract. He held that Agip had
not committed any inducement of breach of contract. He accordingly allowed the appeal, set aside
the judgment of Browne-Marke J and dismissed Abess’s claim.
The main issues in the appeal are:
(i) whether Kakua Chiefdom had lawfully avoided the Abess lease;
(ii) whether the right to avoid a lease conferred by s of Cap 122 can be waived;
(iii) if the right to avoid existed, whether in fact Kakua Chiefdom had waived their right to avoid
the Abess lease;
(iv) whether Agip had induced a breach by Kakua Chiefdom of the Abess lease;
(v) whether possession of the land should be granted to Abess;
(vi) whether the damages awarded were excessive or inadequate.
The right to avoid a lease is conferred by s 9 of Cap. 122. The section reads:
“9. Every deed creating a tenancy of land shall be voidable by either party, unless it—
(a) is executed in the presence of two witnesses by the lessor before the District Commissioner
of the district in which the land is situated; and is executed, in the presence of two witnesses,
by the lessee or his attorney or his agent before a Magistrate; and
(b) has endorsed upon it certificates of execution in their presence signed respectively by the
District Commissioner and the Magistrate before whom it was executed; and
(c) provides that the lessee shall not sublet or assign his interest thereunder except with the consent
of the Tribal Authority with the approval in writing of the District Commissioner, provided that
such consent shall not be unreasonably with-held; and
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(d) contains stipulations with regard to all the maters set out in rule 3 to the schedule to this
Ordinance; and
(e) is registered within 60 days in the office of the Registrar-General.”
The proviso to clause 4 of the Abess lease also conferred a right of avoidance in those terms:
“Provided always that if this indenture is not registered within sixty days of its execution in the
office of the Registrar General in Freetown then the said deed shall be avoidable at the option
of either party to the same.”
The question arises, how is the right to avoid thus conferred exercisable? The answer would
depend on, first whether or not s 9 of the Act or the proviso to clause 4 created a condition, secondly
whether or not the section or the proviso conferred a right of re -entry. The importance of the
distinction is this: breach of a covenant by a tenant does not entitle the lessor to resume possession
by re-entry upon the premises, unless an express stipulation to that effect is contained in the lease.
On the other hand, a stipulation which is framed, not as a mere covenant, but as a condition, carries
with it at common law a right of re-entry if the condition is broken.
A condition is defined at p 424 of Cheshire’s Modern Law of Real Property [11th Ed] as
follows:
“A clause which shows clear intention on the part of the landlord, not merely that the tenant
shall be personally liable if he fails in his contractual duties, but that the lease shall determine
in the event of such a failure.”
In my opinion, none of the sub-sections of s 9, nor the proviso to clause 4 of the lease make the
lease determinable on the failure of the lessee in his contractual duties. In my judgment therefore
neither s 9 nor the proviso to clause 4 create a condition.
Turning now to the right of re-entry, it is perfectly clear that what s 9 confers is a right to avoid
and not a right to re-enter. Also, it is quite clear that the proviso to clause 4 does not confer a right of
re-entry.
The position therefore is that neither s 9 of the Act nor the proviso to clause 4 constitutes a
condition or confers the right of re-entry. Consequently, Kakua Chiefdom did not have a right to re-
entry on the land.
In my opinion, since the proviso to clause 4 is not a condition and does not confer a right of re-
entry, its inclusion in the Abess lease does not in any way add to or subtract from the right of
avoidance conferred on both parties by s 9 of the Act. The parties would still have had the right to
avoid under s 9 of the Act for non-registration, within 60 days even if the proviso to clause 4 had
been omitted. In my judgment therefore the proviso to clause 4 is surplusage.
The question then arises, how is the right to avoid conferred by s 9 of the Act exercisable?
Kakua Chiefdom purported to exercise the right by service of a notice on Abess. The notice was
headed “Notice of Re-entry” and it stated inter alia:
“4. In view of the matters stated above, we the said lessors have decided to avoid and determine
the said lease and have therefore this day exercised our right of re-entry on the land in respect
of which the said lease was made and henceforth the said lease shall determine.”
It was contended on behalf of Abess that notice was not sufficient to avoid the lease. Mr Cotran
submitted that the proper mode of exercising the right of avoidance by a lessor was for the lessor to
give the lessee reasonable notice followed by an action of ejectment. He cited no authority for this
proposition. Mr Gelaga King submitted that all that a lessor must do to avoid a lease is to do some
act evidencing his intention to determine the lease and that the act must be a final and positive act
which cannot be retracted. Mr Davies submitted that a lessor could avoid the lease by re-entry or by
leasing to some other person. He relied on a passage in Cheshire’s Modern Law of Real Property
[11th Ed], p 425 which reads:
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“However clearly the proviso may state that the lease shall be void on breach of condition, it
has been held in a long series of decisions that its only effect is to render the lease voidable. It
is at the option of the landlord whether the tenancy shall be determined or not, and it is only if
he does some act which shows his intention to end it that the lease will be avoided. Thus, an
actual entry by the landlord or the grant of a lease to a now tenant works as forfeiture, but the
usual practice at the present day is to sue for the recovery of possession instead of making a re-
entry, etc.”
It seems to me that this statement of the law is applicable to cases where there is a proviso
conferring a right of re-entry, as clearly indicated in the opening words of the passage. It does not
apply where the lesser does not have the right of re-entry.
In my judgment the right to avoid a lease is exercised by the person having the right doing some
unequivocal act indicating the intention to avail himself of the option conferred on him to avoid the
lease. But the unequivocal act would depend on whether or not a right of re-entry exists.
The position with regard to leases where there is a right of re-entry was stated by Parke B. in
Jones v Carter (1846) 15 M&W 718. He said at p 724:
“In like manner, the lease would be rendered invalid by some unequivocal act, indicating the
intention of the lessor to avail himself of the option given to him, and notified to the lessee, after
which he could no longer consider himself bound to perform the other covenants in the lease;
and if once rendered void, it could not again be set up. An entry, or ejectment in which entry is
admitted, would be necessary in the case of a chattel interest, where the terms of the lease
provided that it should be avoided by re- entry.”
Thus, if a party has a right of re-entry, he may exercise his right of avoidance by re-entry, by
granting a lease to a new tenant or by action for ejectment. But if a party does not have a right of re-
entry it would be unlawful for him to exercise his right of avoidance by re-entry or by granting a
lease to new tenant.
In my judgment the unequivocal act in a case where the party avoiding the lease does not have
a right of re-entry is the issue and service of a writ of summons for recovery of possession: see Canas
Property Co Ltd v K L Television Services Ltd [1970] 2 All ER 795; [1970] 2 QB 433; [1970] 2 WLR
1133.
In my judgment therefore the purported determination of the Abess lease by Kakua Chiefdom
was unlawful and constituted a breach of contract and of the covenant for quiet enjoyment.
The next question is whether Kakua Chiefdom still had the right to avoid the lease when they
purported to exercise it. The case of Abess is that Kakua Chiefdom had waived their right to avoid
the lease by acceptance of rent after knowledge of the cause of avoidance and whether such
acceptance of rent amounted to waiver in law.
The undisputed evidence is that on or before 28 December 1962 the District Commissioner Bo
had received the registered Abess lease. Indeed, he acknowledge receipt of it by letter dated 28
December 1962. It is also not disputed that the District Commissioner was the agent for Kakua
Chiefdom. So it must be accepted that Kakua Chiefdom received the registered Abess lease on or
before 28 December 1962. On that date they kn ew or out to have known of the defects in the
registered Abess Lease of which they later complained i.e., late registration and non-execution by the
lessee or his attorney. Yet with that knowledge Kakua Chiefdom, according to the evidence, took no
steps to avoid the lease for several months. In the meantime, on 7 March 1963, Abess paid rent for
two years to the Accountant General, Bo. Admittedly, according to clause 2(5) of the Abess lease the
rent should be paid “into the office of the District Commissioner.” But the payment of rent to the
Accountant General instead of “into the office of the District Commissioner” was not complained of
by Kakua Chiefdom, nor was it made an issue in this case. Indeed, payment of rent to the Accountant
General instead of “into the office of the District Commissioner” was not mentioned in the notice of
20 January 1964 as one of the grounds on which Kakua Chiefdom purported to determine the lease.
So nothing turns on the payment of rent of the Accountant General. According to the evidence, the
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District Commissioner made an entry of the receipt of the rent paid by Abess in the Kakua Chiefdom
lease decree book kept by him. In my opinion the entry in the decree book by the District
Commissioner clearly evidenced a receipt and acceptance by the District Commissioner, did it
constitute acceptance by the Kakua Chiefdom? The answer to this question is provided by clause
2(5) of the Abess lease which stipulates inter alia: “The receipt of the District Commissioner shall be
sufficient discharge for the payment of such rent.”
The District Commissioner was thus the agent for the receipt of rent for and on behalf of Kakua
Chiefdom, and it follows that acceptance of rent by him is equivalent to acceptance of rent by the
Kakua Chiefdom. I therefore hold that Kakua Chiefdom accepted rent from Abess in March 1963.
What then is the legal effect of the acceptance of rent by Kakua Chiefdom with knowledge of
the cause of avoidance?
In my opinion it is well-settled that acceptance by a landlord of rent accrued due after the cause
of forfeiture (or avoidance) with knowledge of the cause of forfeiture (or avoidance) constitutes a
waiver of the right of forfeiture (or avoidance). A comprehensive and what has been accepted as an
authoritative statement of the principles governing this field of law is to be found in the judgment of
Parker J in Matthews v Smallwood [1910] 1 Ch 777. He said at p786:
“Waiver of a right of re-entry can only arise where the lessor, with knowledge of the facts upon
which his right of re -entry arises, does some unequivocal act recognising the continued
existence of the lease. It is not enough that he should do the act which recognises or appears to
recognise the continued existence of the lease, unless at the time when the act was done, he had
knowledge of the facts under which, or from which, his right of entry arises. Therefore, though
an act of waiver operates with regard to all known breaches, it does not operate with regard to
breaches which were unknown to the lessor at the time when the act took place. It is also, I think
reasonably clear upon the cases that whether the act coupled with the knowledge constitutes a
waiver is a question which the law decides, and therefore it is not open to a lessor who has
knowledge of the breach to say: ‘I will treat the tenancy as existing, and I will receive the rent,
or I will take advantage of my power as landlord to distrain but I tell you all I shall do will be
without prejudice to my right to re-enter, which I intend to reserve.’ That is the position which
he is not entitled to take up. If knowing of the breach he does distrain, or does receive rent, then
by law he waives, and nothing he can say by way of protest against the law will avail him
anything.
Logically therefore, a person who relies upon waiver ought to show, first an act unequivocally
recognizing the subsistence of the lease, and secondly, the knowledge of the circumstances
from which the right of re-entry arises at the time that act is performed.”
I would not have considered it necessary to refer to any other authority on this point, but for a
submission made by Mr Gelaga King to the effect that the important question always is “quo animo
was the act done? In the case of payment of rent “Quo animo was the rent accepted.” The question
of quo animo has been considered by the English courts in a number of cases. The principle laid
down in these cases is that the intention or motive of the landlord in doing the act relied on a waver
is irrelevant. Thus in Segal Securities Ltd v Thoseby (1963) 1 QB 887 at p 898 Sachs J said:
“It is thus a matter of law that once rent is accepted a waiver results. The question of quo animo
it is accepted in forfeiture cases is irrelevant in relation to such acceptance.”
In the recent case of Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048
Lord Denning MR said at p 1052:
“So we have simply to ask: was this rent demanded and accepted by the landlord’s agent with
knowledge of the breach? It does not matter that they did not intend to waive. The very fact that
they accepted the rent with the knowledge constitutes the waiver.”
And he continued in the same page:
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“I know that the judge found that the agents had no intention to waive and finds also that the
tenant knew they had no intention to waive. That seems to make no difference. The law says
that if the agent stated in terms “we do not intend to waive”, it would not have availed them, if
an express statement does not avail a landlord, nor does an implied one.”
Buckley LJ also said at p1054:
“In my judgment, the effect of an act relied on as constituting a waiver of a right to forfeit a
lease must be considered objectively, without regard to the motive or intention of the landlord
or the understanding or belief of the tenant.”
Applying the above-stated principles, I hold that the intention or motive with which the District
Commissioner accepted the rent paid by Abess and the understanding or belief with which Abess
paid the rent are irrelevant. In my judgment, the rent having been accepted with knowledge of the
cause of evidence, the right of Kakua Chiefdom to avoid the lease was waived and the lease was
thereby confirmed and ratified. Therefore the right to avoid the lease under s 9 of Cap 122 was non-
existent on 20 January 1964 when Kakua Chiefdom purported to exercise it. In the circumstances, I
hold that the purported avoidance of the lease by Kakua Chiefdom was unlawful and consequently
constituted a breach of contract and of the covenant for quiet enjoyment.
It was in the forefront of Mr Gelaga King’s and Mr Davies’ arguments that the provisions of s
9 of Cap 122 are mandatory and for the public good and as such they cannot be waived. Reliance
was placed on the decision of the Privy Council in Edward Ramia Ltd v African Woods Ltd [1960]
1 All ER 627 where it was held that a concession of timber rights to land in Ashanti, Gold Coast
under the Gold Coast Concessions