Waghi Security Service Pty Ltd v John Tembon and Western Highlands Provincial Government In Suspension

• Jurisdiction: Papua New Guinea
• Judge: Woods J
• Judgment Date: 22 December 1994
• Citation: [1994] PNGLR 138
• Court: National Court
• Year: 1994
• Judgement Number: N1287

National Court: Woods J

Judgment Delivered: 22 December 1994

PAPUA NEW GUINEA

[NATIONAL COURT OF JUSTICE]

WAGHI SECURITY SERVICES PTY LTD

V

JOHN TEMBON AND

WESTERN HIGHLANDS PROVINCIAL GOVERNMENT (IN SUSPENSION)

Mount Hagen

Woods J

12 December 1994

22 December 1994

CONTRACT — Form of contract — Defects — Execution under seal by provincial government — Execution by company — Authorised signatories — Stamp Duties Act — Modern commercial agreements must comply with modern laws.

Facts

The plaintiff, a security service company sued for breach of contract to provide guard service, entered into by it and the provincial government. It was alleged that the contract was for three years, terminable by three months notice. No notice of termination was given, and damages were claimed for the three month period required for notice. The written agreement which the plaintiff purported to tender in court did not comply with the Stamp Duties Act, and the formal requirements for contracts between the provincial government and companies were not complied with.

Held

1. By s 19 of the Stamp Duties Act, the document tendered could not be admitted.

2. The defects in formalities, such as seals, signatures, and dates, invalidated the alleged contract.

Counsel

P Kunai, for the plaintiff.

No appearance for the defendants.

22 December 1994

WOODS J: The plaintiff is suing for breach of a contract entered into with the Western Highlands Provincial Government in December 1991 to hire the plaintiff's services for security at Kapal House.

The contract is alleged to have been for three years. However, it is alleged that the officers of the government and, in particular, the first defendant terminated the contract without giving the formal notice, as required under the contract, and in breach of a clause of the contract which provides for...