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The High Commercial Court held that ambiguity in tender specifications did not allow the contractor to supply machines unsuitable for cassava flour processing. The district’s appeal was allowed.
The Court of Appeal held that the 07/06/2016 agreement was a loan contract, not merely a guarantee, and upheld rescission for non-performance.
The buyer (Nyirahabimana Emertha) failed to pay the full purchase price by the agreed date but paid over 93% of the price. The court, exercising its discretion, grants a one-month grace period to pay the outstanding balance with interest. If not paid within this period, the contract will be terminated, the property returned to the seller, and the buyer must pay rent from the date the termination claim was filed. Damages are awarded only to the extent justified and proportionate to the breach.
Source excerpt
The Supreme Court held that defective machinery supplied under a commercial contract entitled the buyer to recover replacement costs, but not a full refund.
The Commercial High Court dismissed Agaba’s appeal, finding he admitted sending electronic evidence showing a different vehicle than the one delivered.
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