KOBIL PETROLEUM RWANDA SARL v. GARAGE AUTO IMPERIAL SARL

KOBIL PETROLEUM RWANDA SARL v. GARAGE AUTO IMPERIAL SARL

The Supreme Court held that a binding sale contract existed between KOBIL PETROLEUM RWANDA SARL and GARAGE AUTO IMPERIAL SARL as the parties agreed on the object and price. The one-month period for mutation was not a resolutory condition annulling the contract, as there was no express stipulation to that effect....

Source-derived case information.

Citation
RCOM 0002/13/CS
Parties
Appellant: KOBIL PETROLEUM RWANDA SARL; Respondent: GARAGE AUTO IMPERIAL SARL; Intervener: MUKAREMERA Francine
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
23 October 2015
Case Number
RCOM 0002/13/CS
Procedural Posture
Commercial Contract Appeal / Supreme Court Appellate Judgment
Outcome
Appeal partially allowed; lower court decision modified.
Legal Topics
Sale of Immovable Property, Pre Emption Rights, Contractual Conditions, Double Sale, Damages for Breach of Contract
Contract Law Commercial Law Property Law Sale of Immovable Property Pre Emption Rights Contractual Conditions Double Sale Damages for Breach of Contract

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Parties

KOBIL PETROLEUM RWANDA SARL

Appellant

GARAGE AUTO IMPERIAL SARL

Respondent

MUKAREMERA Francine

Intervener

Procedural Posture

Commercial Contract Appeal / Supreme Court Appellate Judgment

  1. 1 Whether a binding sale contract existed between KOBIL PETROLEUM RWANDA SARL and GARAGE AUTO IMPERIAL SARL for the petrol station
  2. 2 Whether the lapse of the one-month period for mutation constituted a resolutory condition annulling the sale
  3. 3 Whether GARAGE AUTO IMPERIAL SARL could validly sell the petrol station to MUKAREMERA Francine

Ratio Decidendi

The Supreme Court held that a binding sale contract existed between KOBIL PETROLEUM RWANDA SARL and GARAGE AUTO IMPERIAL SARL as the parties agreed on the object and price. The one-month period for mutation was not a resolutory condition annulling the contract, as there was no express stipulation to that effect. However, since GARAGE AUTO IMPERIAL SARL sold the petrol station to MUKAREMERA Francine, who purchased in good faith and without knowledge of the prior sale, the contract could not be enforced in rem. KOBIL PETROLEUM RWANDA SARL was entitled to restitution of the advance paid plus interest, but not to specific performance or damages for breach. Damages previously awarded against...

Court Disposition

Appeal partially allowed; lower court decision modified.

Orders

  • MUKAREMERA Francine retains ownership of the petrol station.
  • GARAGE AUTO IMPERIAL SARL to pay KOBIL PETROLEUM RWANDA SARL 24,496,517 Frw (advance plus interest).