grand alliance limited vs mr wilfred lucas tarimo and 4 others 2014 tzhccomd 2 22 august 2014

grand alliance limited vs mr wilfred lucas tarimo and 4 others 2014 tzhccomd 2 22 august 2014

The Plaintiff failed to pay the remaining instalment, which constituted a default, not a breach, under the Agreement. However, the Defendants' unilateral takeover of hotel management was in breach of the Agreement, which required them to transfer shares equivalent to the amount paid, not to resume management. There was no evidence of fraud or misrepresentation sufficient to void the contract. The appropriate remedy is rescission of the Agreement and refund of the amount paid, with interest and costs.

Citation
grand alliance limited vs mr wilfred lucas tarimo and 4 others 2014 tzhccomd 2 22 august 2014
Parties
Plaintiff: The Grand Alliance Limited; 1st Defendant: Mr. Wilfred Lucas Tarimo; 2nd Defendant: Mr. Derick Wilfred Tarimo; 3rd Defendant: Doreen Wilfred Tarimo; 4th Defendant: Mrs Irene Wilfred Tarimo; 5th Defendant: Snow Crest and Wildlife Safaris Ltd
Court
TZHCCOMD
Jurisdiction
Tanzania
Judgment Date
22 August 2014
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the Plaintiff in part; Share Acquisition Agreement rescinded; refund ordered.
Legal Topics
Share Acquisition, Breach of Contract, Specific Performance, Rescission, Fraud, Damages, Interest, Costs
Source Language
English
Contract Law Company Law Commercial Law Share Acquisition Breach of Contract Specific Performance Rescission Fraud +3 more

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Parties

The Grand Alliance Limited

Plaintiff

Mr. Wilfred Lucas Tarimo

1st Defendant

Mr. Derick Wilfred Tarimo

2nd Defendant

Doreen Wilfred Tarimo

3rd Defendant

Mrs Irene Wilfred Tarimo

4th Defendant

Snow Crest and Wildlife Safaris Ltd

5th Defendant

Procedural Posture

Commercial Case / Judgment

Legal Issues

  1. 1 Whether there was breach of the Share Acquisition Agreement
  2. 2 Whether the Share Acquisition Agreement was obtained through fraud
  3. 3 Whether the Defendants obtained the sum of USD 1,730,000.00 through fraud

Ratio Decidendi

The Plaintiff failed to pay the remaining instalment, which constituted a default, not a breach, under the Agreement. However, the Defendants' unilateral takeover of hotel management was in breach of the Agreement, which required them to transfer shares equivalent to the amount paid, not to resume management. There was no evidence of fraud or misrepresentation sufficient to void the contract. The appropriate remedy is rescission of the Agreement and refund of the amount paid, with interest and costs.

Court Disposition

Judgment for the Plaintiff in part; Share Acquisition Agreement rescinded; refund ordered.

Orders

  • The Share Acquisition Agreement dated 5th September 2011 is rescinded subject to the 1st to 4th Defendants refunding USD 1,730,000.00 to the Plaintiff.
  • The 1st to 4th Defendants shall pay the Plaintiff USD 1,730,000.00.