Falyn Investments (Pvt) Limited v Adolph Thema and Winnie Thema

HH 273-23

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Case Details

Court

Harare High Court

Date

4 May 2023

Citation

HH 273-23

Neutral Citation

[2023] ZWHH 273

Outcome

unknown

Case Type

Application

Bench

Presiding

Ndlovu J

Full Bench

Ndlovu J

Areas of Law

Contract LawProperty Law

Keywords

instalment salecontract breachcancellationdeclaratur

Key Issues

{"issue_text":"Whether the cancellation of the agreement by respondents was lawful given Clause 4's provision for alternative remedy","issue_type":"mixed","dispositive":"yes","related_facts":"Applicant's default, Clause 4 remedy, statutory cancellation procedure"}
{"issue_text":"Whether Clause 4 excluded the common law right of cancellation","issue_type":"law","dispositive":"yes","related_facts":"Contract interpretation, absence of cancellation clause"}
{"issue_text":"Whether the Contractual Penalties Act automatically applies to instalment sales","issue_type":"law","dispositive":"no","related_facts":"Agreement dated after 9 November 1973"}

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background

Facts of the Case

Background

The parties entered into an instalment sale agreement for land in Gwelo for US$1.5 million. The applicant paid a US$800,000 deposit in 2018 and agreed to pay the US$700,000 balance in instalments. The applicant defaulted from 31 January 2021. Respondents cancelled the agreement in August 2022 and sold the property to a third party. Applicant sought a declaration that the cancellation was null and void as it violated Clause 4 of the agreement.

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