20140822 TZHC Arusha

20140822 TZHC Arusha

The Defendants breached the Share Acquisition Agreement by unilaterally taking over management of the hotel instead of transferring shares equivalent to the amount paid by the Plaintiff, as required by the Agreement upon default. However, the Agreement was not obtained through fraud, and the Plaintiff is entitled to rescission and refund, not specific performance or damages.

Citation
20140822 TZHC Arusha
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
TZHC
Jurisdiction
Tanzania
Judgment Date
22 August 2014
Procedural Posture
Commercial Case / Judgment
Outcome
Judgment for the Plaintiff in part; Share Acquisition Agreement rescinded; refund and interest ordered; other reliefs denied.
Legal Topics
Share Acquisition Agreement, Breach of Contract, Specific Performance, Rescission, Fraud, Damages, Interest, Costs
Source Language
English
Contract Law Company Law Share Acquisition Agreement Breach of Contract Specific Performance Rescission Fraud Damages +2 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 Defendants breached the Share Acquisition Agreement by unilaterally taking over management of the hotel instead of transferring shares equivalent to the amount paid by the Plaintiff, as required by the Agreement upon default. However, the Agreement was not obtained through fraud, and the Plaintiff is entitled to rescission and refund, not specific performance or damages.

Court Disposition

Judgment for the Plaintiff in part; Share Acquisition Agreement rescinded; refund and interest ordered; other reliefs denied.

Orders

  • Share Acquisition Agreement rescinded subject to refund of USD 1,730,000.00 to Plaintiff by 1st to 4th Defendants.
  • 1st to 4th Defendants to pay Plaintiff USD 1,730,000.00.