20060718 TZHC Dar es Salaam

20060718 TZHC Dar es Salaam

There was no provision in the loan agreement for payment of interest in the event of default, nor was there evidence of loss or damage to warrant compensation beyond the agreed sum. The award of Shs. 30,000/= per month as interest was not supported by the contract or law. The respondent is entitled only to the principal and agreed consideration, with court interest at 7% per annum from the date of judgment.

Citation
20060718 TZHC Dar es Salaam
Parties
Appellant: John Mushi; Respondent: Epaphra G. Kessy
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
18 July 2006
Procedural Posture
Civil Appeal / Second Appeal
Outcome
appeal allowed in part
Legal Topics
Loan Agreement, Interest on Loan, Breach of Contract, Damages, Specific Performance
Source Language
English
Contract Law Loan Agreement Interest on Loan Breach of Contract Damages Specific Performance

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Parties

John Mushi

Appellant

Epaphra G. Kessy

Respondent

Procedural Posture

Civil Appeal / Second Appeal

Legal Issues

  1. 1 Whether the respondent is entitled to interest of Shs. 30,000/= per month until payment of the principal is made under the loan agreement
  2. 2 Whether the respondent is entitled to damages for breach of contract

Ratio Decidendi

There was no provision in the loan agreement for payment of interest in the event of default, nor was there evidence of loss or damage to warrant compensation beyond the agreed sum. The award of Shs. 30,000/= per month as interest was not supported by the contract or law. The respondent is entitled only to the principal and agreed consideration, with court interest at 7% per annum from the date of judgment.

Court Disposition

appeal allowed in part

Orders

  • Order to pay interest of Shs. 30,000/= per month set aside
  • Appellant to pay Shs. 160,000/= (principal plus agreed consideration)