simba motors ltd vs joh achelis sohne gmbh another 2022 tzca 311 24 may 2022

A binding contract existed based on correspondence and conduct; breach occurred due to non-delivery; special damages were lawful as penalty for delay but the 9.75% interest was not justified due to lack of evidence.

Citation: simba motors ltd vs joh achelis sohne gmbh another 2022 tzca 311 24 may 2022
Parties: Appellant: Simba Motors Limited; 1st Respondent: Joh Ache Lis & Sohne GmbH; 2nd Respondent: Niko Insurance (T) Limited
Court: TZCA
Jurisdiction: Tanzania
Judgment Date: 24 May 2022
Procedural Posture: Civil Appeal / Judgment
Outcome: Appeal dismissed with costs, except award of 9.75% interest in special damages set aside.
Legal Topics: Existence of Contract, Breach of Contract, Special Damages, Interest Rates
Source Language: English

Contract Law Commercial Law Existence of Contract Breach of Contract Special Damages Interest Rates

Case Brief

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Parties

Simba Motors Limited

Appellant

Joh Ache Lis & Sohne GmbH

1st Respondent

Niko Insurance (T) Limited

2nd Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

1 Whether a binding contract existed between the appellant and 1st respondent
2 Whether the appellant breached the contract
3 Whether special damages were properly awarded

Ratio Decidendi

Court Disposition

Appeal dismissed with costs, except award of 9.75% interest in special damages set aside.

Orders

Appellant and 2nd respondent to pay USD 120,150.00 to 1st respondent
Appellant to pay Euro 68,433.25 as liquidated damages to 1st respondent