jcr enterprises ltd vs tanganyika investment oil and transport co ltd another 2011 tzhccomd 2033 5 july 2011

jcr enterprises ltd vs tanganyika investment oil and transport co ltd another 2011 tzhccomd 2033 5 july 2011

TIOT breached the supply agreement by failing to deliver the contracted quantity of petroleum products within the agreed period. The defendants unlawfully invoked the guarantee as the contractual conditions for payment and invocation were not met, specifically the supply of 1,000,000 litres as a precondition for payment and demand. The plaintiff is entitled to recover losses suffered as a result of the unlawful invocation.

Citation
jcr enterprises ltd vs tanganyika investment oil and transport co ltd another 2011 tzhccomd 2033 5 july 2011
Parties
Plaintiff: JCR Enterprises Limited; 1st Defendant: Tanganyika Investment Oil & Transport Co. Ltd (TIOT); 2nd Defendant: ENOC Supply & Trading (LLC)
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
5 July 2011
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff; counterclaim dismissed with costs.
Legal Topics
Breach of Contract, Bank Guarantee, Supply Agreement, Jurisdiction Clause
Source Language
English
Contract Law Commercial Law Breach of Contract Bank Guarantee Supply Agreement Jurisdiction Clause

Case Brief

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Parties

JCR Enterprises Limited

Plaintiff

Tanganyika Investment Oil & Transport Co. Ltd (TIOT)

1st Defendant

ENOC Supply & Trading (LLC)

2nd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 What were the terms and conditions of the fuel supply contract?
  2. 2 Whether there was any breach of the said contract?
  3. 3 Whether the acts of the 1st and 2nd defendant in invoking the guarantee was lawful?

Ratio Decidendi

TIOT breached the supply agreement by failing to deliver the contracted quantity of petroleum products within the agreed period. The defendants unlawfully invoked the guarantee as the contractual conditions for payment and invocation were not met, specifically the supply of 1,000,000 litres as a precondition for payment and demand. The plaintiff is entitled to recover losses suffered as a result of the unlawful invocation.

Court Disposition

Judgment for the plaintiff; counterclaim dismissed with costs.

Orders

  • Defendants jointly and severally to pay the plaintiff USD 2,478,207.00.
  • Defendants to pay punitive interest at 36% per annum from date of filing to date of judgment.