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The Asokore Municipal Assembly (AMA) advertised for Suppliers to submit proposals for the supply of Conference Centre furniture in December 2020. Boakye Company Limited (BCL)
The Asokore Municipal Assembly (AMA) advertised for Suppliers to submit proposals for the supply of Conference Centre furniture in December 2020. Boakye Company Limited (BCL) one of the respondents has submitted a proposal for the tender at a total amount of seven hundred thousand Ghana cedis for delivery in nine weeks. The Entity Tender Committee of AMA had approved the award of the contract at a contract sum of GHc 700,000.00. The company has submitted claim for the supply of first set of furniture upon which AMA had authorized TDC to make payment in favour of BCL. TDC the paying agency of AMA has responded in March 2021 that the payment cannot be effected because the tender did not go through evaluation process and there is no evaluation report has been prepared for auditing purpose. TDC had also complained about the award of contract sum which is beyond the threshold of the Entity Tender Committee of AMA. After three months of no payment BCL has issued a writ against AMA and TDC for payment of work done and damages for breach of contract. You are the Project Manager for AMA and your Chief Executive has referred the correspondence to you for your comment and advice. a. Discuss whether or not contract has been breached b. Discuss the circumstance under which a valid contract could be vitiated
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