HOTEL OKAPI v. BPR

HOTEL OKAPI v. BPR

HOTEL OKAPI is bound by the loan agreement signed by Nkunda Laetitia due to apparent authority, as both Nkunda and Rumanyika operated the account and the funds benefited HOTEL OKAPI. Nkunda Laetitia, as guarantor, expressly undertook to pay without prior pursuit of HOTEL OKAPI, making her jointly liable. The bank...

Source-derived case information.

Citation
RCOMA 0032/12/CS
Parties
Applicant: HOTEL OKAPI; Guarantor: Nkunda Laetitia; Respondent: Banki y’Abaturage y’u Rwanda (BPR); Representative: Rumanyika Jean Marie Vianney
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
14 March 2014
Case Number
RCOMA 0032/12/CS
Procedural Posture
Commercial Appeal / Final Judgment
Outcome
Appeal dismissed in part; joint liability imposed.
Legal Topics
Apparent Authority, Guarantee Liability, Mandate, Solidary Obligation
Commercial Law Contract Law Apparent Authority Guarantee Liability Mandate Solidary Obligation

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Parties

HOTEL OKAPI

Applicant

Nkunda Laetitia

Guarantor

Banki y’Abaturage y’u Rwanda (BPR)

Respondent

Rumanyika Jean Marie Vianney

Representative

Procedural Posture

Commercial Appeal / Final Judgment

Legal Issues

  1. 1 Whether HOTEL OKAPI is bound by a loan agreement signed by Nkunda Laetitia.
  2. 2 Whether the bank acted negligently in granting the loan.
  3. 3 Whether Nkunda Laetitia, as guarantor, is liable to pay without prior pursuit of HOTEL OKAPI.

Ratio Decidendi

HOTEL OKAPI is bound by the loan agreement signed by Nkunda Laetitia due to apparent authority, as both Nkunda and Rumanyika operated the account and the funds benefited HOTEL OKAPI. Nkunda Laetitia, as guarantor, expressly undertook to pay without prior pursuit of HOTEL OKAPI, making her jointly liable. The bank was not negligent as it relied on the apparent authority and account operation by both parties.

Court Disposition

Appeal dismissed in part; joint liability imposed.

Orders

  • HOTEL OKAPI and Nkunda Laetitia are jointly ordered to pay BPR 40,670,040 Rwandan francs.
  • HOTEL OKAPI and Nkunda Laetitia are jointly ordered to pay case costs of 44,400 Rwandan francs.