serengeti district council vs monica alex 2020 tzhc 2463 24 august 2020

serengeti district council vs monica alex 2020 tzhc 2463 24 august 2020

The contract was void ab initio as its object (collection of hotel levy) was unlawful, being based on a repealed law. None of the statutory exceptions allowing recovery under a void contract were established, as both parties were presumed to know the law and no misrepresentation was proved. Therefore, no damages or compensation could be awarded except for restitution of the amount paid by Monica Alex to the Council.

Citation
serengeti district council vs monica alex 2020 tzhc 2463 24 august 2020
Parties
Appellant: Serengeti District Council; Respondent: Monica Alex
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
24 August 2020
Procedural Posture
Civil Appeal / Judgment on Consolidated Appeals
Outcome
Appeal by Serengeti District Council partly allowed; appeal by Monica Alex dismissed.
Legal Topics
Void Contracts, Illegality, Restitution, Misrepresentation, Damages, Local Government Powers
Source Language
English
Contract Law Public Law Void Contracts Illegality Restitution Misrepresentation Damages Local Government Powers

Case Brief

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Parties

Serengeti District Council

Appellant

Monica Alex

Respondent

Procedural Posture

Civil Appeal / Judgment on Consolidated Appeals

Legal Issues

  1. 1 Whether the contract between Monica Alex and Serengeti District Council was valid or void for illegality
  2. 2 Whether damages or compensation could be awarded under a void contract
  3. 3 Whether exceptions to the bar on recovery under a void contract applied

Ratio Decidendi

The contract was void ab initio as its object (collection of hotel levy) was unlawful, being based on a repealed law. None of the statutory exceptions allowing recovery under a void contract were established, as both parties were presumed to know the law and no misrepresentation was proved. Therefore, no damages or compensation could be awarded except for restitution of the amount paid by Monica Alex to the Council.

Court Disposition

Appeal by Serengeti District Council partly allowed; appeal by Monica Alex dismissed.

Orders

  • Serengeti District Council to return Tshs. 5,600,000 received from Monica Alex.
  • Each party to bear its own costs.