magreth minja vs shohama property developers ltd and another 2020 tzhccomd 2022 22 july 2020

magreth minja vs shohama property developers ltd and another 2020 tzhccomd 2022 22 july 2020

The 1st defendant breached the sale agreement with the plaintiff by failing to pay the full purchase price and also breached the letter of assurance to the 2nd defendant. However, specific performance cannot be ordered to compel the 1st defendant to pay the 2nd defendant, as there is no privity of contract between them. The appropriate remedy is reversion of ownership of the property to the plaintiff and award of general damages.

Citation
magreth minja vs shohama property developers ltd and another 2020 tzhccomd 2022 22 july 2020
Parties
Plaintiff: Magreth Minja; 1st Defendant: Shoham Property Developers Limited; 2nd Defendant: TIB Development Bank Ltd
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
22 July 2020
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the plaintiff in part; specific performance and permanent injunction denied; reversion of property and damages awarded.
Legal Topics
Breach of Contract, Specific Performance, Mortgage Enforcement, Damages, Sale of Land
Source Language
English
Contract Law Property Law Banking Law Breach of Contract Specific Performance Mortgage Enforcement Damages Sale of Land

Case Brief

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Parties

Magreth Minja

Plaintiff

Shoham Property Developers Limited

1st Defendant

TIB Development Bank Ltd

2nd Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether the 1st defendant breached the terms and conditions of the sale agreement executed with the plaintiff on 9th January 2017
  2. 2 Whether the 1st defendant breached the letter of assurance to the 2nd defendant dated 28th September 2017 regarding payment of Tshs. 105,000,000
  3. 3 What reliefs the parties are entitled to

Ratio Decidendi

The 1st defendant breached the sale agreement with the plaintiff by failing to pay the full purchase price and also breached the letter of assurance to the 2nd defendant. However, specific performance cannot be ordered to compel the 1st defendant to pay the 2nd defendant, as there is no privity of contract between them. The appropriate remedy is reversion of ownership of the property to the plaintiff and award of general damages.

Court Disposition

Judgment for the plaintiff in part; specific performance and permanent injunction denied; reversion of property and damages awarded.

Orders

  • Ownership of Plot No. 162 Block 'H' Title No. 18839, L.O No.254402, Nyamanoro area, Mwanza, shall revert to the plaintiff.
  • The 1st defendant shall hand over to the plaintiff Plot No. 162 Block 'H' Title No 18839, L.O. No. 254402, Nyamanoro Area, Mwanza.