Contracts (Amendment) Act, 2023 Act 1114

CONTRACTS (AMENDMENT) ACT, 2023 Act 1114
ARRANGEMENT OF SECTION
Section
Section 17 of Act 25 amended
\

Act 1114
REPUBLIC OF GHANA
The One Thousand one hundred and fourteenth
ACT
OF THE PARLIAMENT OF THE REPUBLIC OF GHANA
ENTITLED
CONTRACTS (AMENDMENT) ACT, 2023
AN ACT to amend the Contracts Act, 1960 (Act 25) to provide for the
type of interest to be paid on a sum of money due to a party to a
contract or transaction entered into on behalf of the Republic.
DATE OF ASSENT: 1st March, 2024.
PASSED by Parliament and assented to by the President
Section 17 of Act 25 amended
The Contracts Act, 1960 (Act 25) is amended by the substitution for section
17, of
2

ent and assented to by the President
Section 17 of Act 25 amended
The Contracts Act, 1960 (Act 25) is amended by the substitution for section
17, of
2

(ontiitr/ (/linrihlDU'ni) Ail, 20)2 / Act HJ4
( ‘ontractn of (hr
17. (I) ‘T‘hu Aet applies in a cimltiid oi d 1antaetjon
enterei inl on behall of tlie Republe an il applie lo an eahrr
c’ontiact oi tecnnaction. (2) ‘l’hie following persenn are authorived to cnli:f into
a coniact or tankaction on behalf of the Repuhlic:
(u) a Minister responsible for a zuhjec1 or
department on a mailer falling within the
portfolio of the Minister;
(h) a person authorised by the Minister; or
(c) any other person authorised by law. (3) Where a person specified under subsection (2) enters
into a contract or transaction on behalf of the Republic, the
payment of interest on any sum of money due under the contract
or transaction shall be calculated at simple interest. (4) A person shall not enter into a contract or a
transaction on behalf of the Republic in which the payment of
interest on a sum of money due to a party to the contract or
transaction is calculated at compound interest. (5) A contract entered into contrary to subsection (4) is
null and void.

to a party to the contract or
transaction is calculated at compound interest. (5) A contract entered into contrary to subsection (4) is
null and void.

(6) A person who wilfully enters into a contract contrary
to this section commits an offence and is liable on summary
conviction to a fine of not less than five thousand penalty units
and not more than ten thousand penalty units or to a term of
imprisonment of not less than ten years and not more than fifteen
years or to both.”. 3

Act 1114 Con tracts (Aniendment) Act, 2023
Date of Gazette notification: 1st March, 2024.
PRINTED BY GHANA PUBLISHING COMPANY LTD. ASSEMBLY PRESS, ACCRA. GPCL/A140/450/3/2024
Website:www.ghanapublishing.com Email:[email protected] Tel:+233 302-664338/9