acclaim construction suppliers ltd vs the arab contractors osman ahmed osman co ltd another 2023 tzhccomd 50 24 february 2023

acclaim construction suppliers ltd vs the arab contractors osman ahmed osman co ltd another 2023 tzhccomd 50 24 february 2023

The defendants breached the terms of the purchase orders by cancelling them without justifiable cause. The evidence did not support the defendants' claim of persistent quality issues, and the contractual provisions invoked by the defendants did not justify the cancellation. The plaintiff is entitled to general damages and return or payment for the containers, but not to specific damages or expected profits due to lack of strict proof.

Citation
acclaim construction suppliers ltd vs the arab contractors osman ahmed osman co ltd another 2023 tzhccomd 50 24 february 2023
Parties
Plaintiff: Acclaim Construction Supplies Limited; 1st Defendant: The Arab Contractors (Osman Ahmed Osman & Co.) Limited; 2nd Defendant: El Sewedy Electric Company AC-EE Joint Venture
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
24 February 2023
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff
Legal Topics
Breach of Contract, Damages, Purchase Orders, Supply of Goods
Source Language
English
Contract Law Commercial Law Breach of Contract Damages Purchase Orders Supply of Goods

Case Brief

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Parties

Acclaim Construction Supplies Limited

Plaintiff

The Arab Contractors (Osman Ahmed Osman & Co.) Limited

1st Defendant

El Sewedy Electric Company AC-EE Joint Venture

2nd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether there is breach of terms of purchase orders
  2. 2 What are reliefs to the parties

Ratio Decidendi

The defendants breached the terms of the purchase orders by cancelling them without justifiable cause. The evidence did not support the defendants' claim of persistent quality issues, and the contractual provisions invoked by the defendants did not justify the cancellation. The plaintiff is entitled to general damages and return or payment for the containers, but not to specific damages or expected profits due to lack of strict proof.

Court Disposition

Judgment for the plaintiff

Orders

  • Declaration that the defendants breached the terms of the purchase orders dated 2nd November, 2020, 28th January, 2021 and 11th May, 2021
  • Defendants to immediately return and/or pay for 140 intermediate bulk containers valued at USD 12,174