A financial lawyer, Jonathan Amable, says the Ghana Airports Company Limited (GACL) cannot be held liable for terminating its contract with Evatex Logistics Limited.
His comments come in the wake of threats by Evatex to sue GACL for $64.6 million over the termination. The company has issued a seven-day ultimatum to the GACL to withdraw the termination notice or face legal action.
Under the terms of the contract, Evatex was entitled to 15% of any revenue it uncovered through its auditing services. However, GACL maintains that the company has not generated any revenue in the four months since it began operations.
Evatex insists it has invested $64.6 million in the contract and is demanding that GACL reverse the termination notice or risk a court battle to enforce its rights.
Jonathan Amable, Managing Partner at LNF Legal Advisors, shared his legal perspective on the issue.
“I’ve seen the letter from the Evatex lawyers; I think it is instructive that they did not call any provision within the contract to back their claim for damages,” he stated.
“If you compare that to the conduct of the GACL, you could see that they relied on clause 7(A), and unless there’s any other provision which will detract from the ability of the GACL to rely on clause (7A).”
Amable further explained, “Clause 7(A) gives them a perfect legal window to terminate simply by providing notice, and there will not be any liabilities even if certain monies have been invested.”