GUVAVA
JA:
[1] This
is an appeal against the whole judgment of the High Court which was
handed down on 10 April 2019. The gripe of the appellant is that the
court a
quo
dismissed its claim and granted an order in favour of the
respondent's counter-claim.
BACKGROUND
FACTS
[2] The
facts of the matter which have a bearing on the dispute may be
summarised in the following manner.
The
appellant is a private limited company duly registered in accordance
with the laws of Zimbabwe. The respondent is a private individual and
resides at 12 Le Roux Drive, Hillside, Harare.
On
19 July 2017, the appellant issued summons against the respondent and
sought an order in the following terms:
“(a) Ejectment
forthwith of the defendant and all those claiming occupation through
him from the property at number 12 Le Roux Drive, Hillside, Harare.
(b)
Payment of damages in the sum of US$58,000.00 to plaintiff;
(c)
Payment of holding over damages in the amount of US$700.00 per month
calculated from the 01st
June 2017 to date of eviction;
(d)
Costs of suit on the higher scale of legal practitioner and client.”
[3] The
basis of the claim followed a purported breach of contract by the
respondent. In its declaration to the summons the appellant averred
that sometime in September 2009, the parties entered into a verbal
agreement for the sale and purchase of a portion of immovable
property known as number 12 Le Roux Drive, Harare ('the property').
The sale was facilitated by an estate agents' company known as
Property Plus Realtors (Private) Limited which was acting on behalf
of the appellant.
The
agreement of sale stipulated that the respondent would pay the
purchase price of US$75,000 by paying a deposit of US$15,000 upon
agreement. The balance of US$60,000 was to be paid at the rate of
US$5,000 per month for 12 consecutive months with interest on the
purchase price being calculated at the rate of 1 per cent per month.
The full purchase price was to be paid on or before 30 August 2010.
The parties further agreed that the respondent would take immediate
occupation of the property upon payment of the deposit.
[4] The
appellant alleged that the respondent failed to pay the full
instalments by the due date and as such breached the verbal agreement
of sale. It was appellant's evidence that the respondent failed to
pay the sum of US$39,100 which comprised the principal debt and
interest. The appellant further stated that the respondent
acknowledged in writing on 30 March 2017 that he had not paid the
full purchase price.
[5] On
17 May 2017 the appellant served the respondent with a notice to
rectify its breach within 30 days. Despite the notice the respondent
failed or neglected to comply. As a result of the respondent's
breach the appellant cancelled the agreement of sale on 23 June 2017
and demanded vacant possession of the property.
[6] Following
the issuance of summons the respondent entered an appearance to
defend. In his plea he averred that the agreed purchase price for the
property was US$68,000 and that he was to pay a deposit of US$15,000
and thereafter instalments of US$5,000 until the balance was paid in
full. The respondent further averred that he paid the deposit and a
further US$37,000 and that the remaining balance as at 1 May 2010 was
US$16,000.
[7] The
respondent averred that he failed to continue with the payments as
the appellant refused to come up with a written agreement of sale
which would enable him to obtain a mortgage loan to pay for the
outstanding balance for the property. The respondent further averred
that both parties, as a compromise to their verbal agreement, agreed
that upon payment of US$300 by the respondent the appellant would
draft the agreement of sale. The respondent paid the US$300 but no
agreement was drafted.
[8] The
respondent further stated that the appellant, without his knowledge
and consent, sought to subdivide the property. In reaction to the
subdivision, the respondent, through his legal practitioners, wrote a
letter on 30 of March 2017 to the appellant informing it to refrain
from the illegal subdivision and for it to provide a written
agreement of sale. The respondent stated that the appellant did not
comply with his notice. The appellant decided to give him notice to
rectify a non-existent breach of the verbal agreement. It was the
respondent's averment that the notice by the appellant was a legal
nullity and of no force and effect.
[9] The
respondent thus denied the appellant's entire claim and
consequently filed a counter-claim against the appellant seeking the
following order:
“(a)
An interdict restraining the Plaintiff from subdividing the property
known as Stand 10830 Salisbury Township of Salisbury Township Lands
Held Under Deed of Transfer Number 11900/2005.
(b)
An order that the Plaintiff take all necessary steps to prepare an
agreement of sale within 10 days of the granting of judgment
reflecting the terms of the verbal agreement as set out in paragraphs
16 and 17 of this Declaration including the amount paid as of date
and the balance outstanding in the sum of US$16,000.00.
(c)
Costs of suit on a Legal Practitioner and client scale.”
[10] In
its plea to the counterclaim the appellant maintained that the
agreement between the parties was for the sale and purchase of a
portion of the property. The appellant further denied the payments
and outstanding balance which the respondent purportedly made to it.
The appellant also denied that it had an obligation to draw up an
agreement of sale. It was appellant's argument that the agreement
of sale did not have a term which provided that the balance of the
purchase price would be paid through a bank loan.
[11] Following
a Pre-Trial Conference before a Judge in chambers, the parties
entered into a joint pre-trial conference minute which read as
follows:
“ISSUES
1.
What were the initial and later compromise terms of the agreement?
2.
Whether or not the defendant breached any of the terms of the
agreement.
3.
Whether or not the plaintiff should not be interdicted from
subdividing the property?
ONUS
4.
On both parties in respect of issue number 1.
5.
On the plaintiff in respect of issue 2.
6.
On defendant in respect of issue 3.
ADMISSIONS
7.
Plaintiff admits to receiving US$300 for the purposes of drafting an
agreement of sale.
8.
Defendant is presently in possession of the property.”
EVIDENCE
BEFORE THE COURT A
QUO
[12] At
the trial, the appellant led evidence through a single witness, one
Brian Machengo (Machengo), a sales manager at Property Plus Realtors
(Private) Limited. Machengo testified that the advertisement of the
property was published through The Herald newspaper. It did not
indicate that only a portion of the property was being sold. It
simply made reference to 'one acre of panoramic views'.
He
further stated that he was given a mandate by the appellant to sell
the property for US$90,000 but published the advertisement with an
offer price of $70,000. His mandate was to sell land with a
residential property measuring plus or minus 1500 square meters. It
was part of the whole property that comprised 12 Le Roux Drive. The
respondent was one of the persons who responded to the advertisement
and made an offer to purchase the property for US$68,000. This offer
was rejected by the appellant.
[13] He
could however not explain how the purchase price changed from
US$90,000 to US$70,000 and subsequently to US$75,0000. It was his
evidence that as the agreement was verbal there was no paper trail
explaining what had taken place.
[14]
Machengo further accepted that at the time when the sale was
concluded there was no subdivision permit as the permit was only
granted on 10 February 2015. He further accepted that the respondent
paid about US$52,000 towards the purchase of the property and that he
paid US$300 for the drafting of an agreement of sale.
[15 He
confirmed that the respondent filled in an offer to purchase form. He
also highlighted that the form did not make any reference to the
respondent accessing mortgage finance to pay off the purchase price.
He denied that he was obliged to give the respondent a written
agreement. He further stated that the appellant was within his rights
to subdivide the property as he had only sold a portion of it to the
respondent.
[16] The
respondent testified on his own behalf and led evidence from two
other witnesses. The respondent testified that he saw an advert for
the property which had a purchase price of US$70,000. He made an
offer for US$68,000 on an Offer Form provided to him by Machengo.
He
indicated that it was never mentioned to him that only a portion of
the property was being sold and that from the description of the
property on the advertisement he believed he was purchasing the whole
property. He denied that the purchase price of the property was
agreed as US$75,000 as alleged by the appellant.
[17] The
respondent admitted that he had not paid the full purchase price for
the property. He attributed his failure to meet the terms of the
agreement to the fact that his company was facing economic hardships
and that he failed to acquire a bank loan as the appellant had
refused to give him a written agreement of sale. He explained that
since he failed to get a written agreement he was unable to obtain a
loan to offset the outstanding balance.
[18] The
respondent testified that in 2010 he met Mr Van Hoogstraten, whom he
believed to be the seller, for the first time who informed him that
he never signs written contracts in his business dealings. He then
formed the opinion that he was dealing with “crookey dodgy people”
and decided not to pay the balance of the purchase price.
[19] He
testified that he later received a report that there were people
subdividing the property. He wrote to the appellant protesting the
subdivision as he believed he had purchased the whole property. When
he did not get a response he made a report to the police. Following
the report to the police he then received a letter informing him that
he was in breach of the agreement. The respondent denied that he owed
the sum of US$58,000 as damages for rentals calculated at the rate of
US$700 per month.
[20] In
2014 he again met Mr Van Hoogstraten and this time he agreed to have
a written agreement of sale, provided the money for drafting such
agreement was paid. It was on this basis that he paid the $300 for
drafting the agreement of sale. However, in spite of paying the $300,
no agreement was drafted by the appellant.
[21] The
evidence of Patrick Mapfumo, the respondent's second witness was
admitted with the consent of both parties. Mapfumo's evidence as
stated in the respondent's summary of evidence confirmed that, in
2014, the witness and his wife had gone with the respondent to see
one Mr. Nicholas Van Hoogstraten along Mazowe Road. Their party also
included Machengo. It was Mapfumo's evidence that at the meeting
the parties agreed that an agreement of sale be drawn up upon payment
of US$300 (being made) by the respondent for drafting the agreement.
[22] The
respondent's third witness was Patrick Nyamugama, a registered
estate agent, who appeared to give expert evidence in support of the
respondent's case. Nyamugama testified that around the year 2009
the property in dispute would have been valued at about US$70,000 –
US$80,000. He also stated that if the property was to be subdivided
the value of the property would be about US$50,000.
[23] At
the conclusion of the trial, the court a
quo
found that the respondent purchased the entire property and not a
subdivision as alleged by the appellant.
The
court disbelieved the evidence of Machengo and found him to be an
evasive witness. The court also found that Machengo made a number of
concessions in favor of the respondent. The court a
quo
thus
found that the appellant had failed to prove its claim. It noted that
there were gaps in the evidence given by Machengo and that the
appellant ought to have called its directors. The court further noted
that as the subdivision of the property had already been granted it
could not make any order interdicting the operation of the
subdivision permit.
However,
the court found that the subdivision permit number SD/CR/15/14 dated
February 2015 was null and void as it had been granted six years
after the whole property had been sold to the respondent.
[24] In
the result the court made the following order:
“1.
The plaintiff's claim is dismissed.
2.
The defendant's counter-claim is granted.
3.
The plaintiff shall take all the necessary steps to prepare an
agreement of sale within ten (10) days of the handing down of this
judgment reflecting the terms of the verbal agreement entered into on
30 August 2009 including the following:
3.1
that plaintiff sold to the defendant certain piece of land situate in
the district of Salisbury called stand 10830 Salisbury Township of
Salisbury Township Lands measuring 3033 square metres held under Deed
of Transfer number 11900/2005 in favour of Divvyland Investments
(Private) Limited.
3.2
that the agreed purchase price for the immovable property was the sum
of US$68,000 (sixty eight thousand United States dollars).
3.3
that the defendant paid a deposit in the sum of US$15,000 (fifteen
thousand United States dollars) on 04 September 2009.
3.4
that the defendant has paid a total of US$56,900 (fifty six thousand
nine hundred United States dollars) to date towards liquidating the
purchase price inclusive of interest.
3.5
that the defendant shall pay the outstanding balance of $14,384-01
(fourteen thousand three hundred and eighty four United States
dollars and one cent) through a bank loan.
4.
The plaintiff shall pay the defendant's costs of suit in respect of
both the main claim and the counter-claim on the legal practitioner
and client scale.”
[25] Aggrieved
by the judgment of the court a
quo
the appellant noted the present appeal on the following grounds:
1.
The court
a
quo
erred
and misdirected itself in granting relief not sought by the parties
and in consequence by creating a non-existing contract for the
parties.
2.
The court a
quo
erred and misdirected itself in setting aside a valid subdivision
permit when no such relief had been sought before it.
3.
The court a
quo
erred and misdirected itself in failing to find that once respondent
was in willful default/breach for a period in excess of five years
and contrary to the agreement the appellant was entitled to
cancellation of the agreement and to the consequential relief of
eviction and holding over damages.
4.
Furthermore the court a
quo
erred in its failure to find that the absence of a written agreement
is no bar to payment of the purchase price and that respondent was
not absolved from performing his side of the agreement as he could
still tender into court or have made payment as he had previously
done.
5.
The court a
quo
further
erred and misdirected itself in failing to find that an advertisement
is an invitation to treat and does not create a binding contract.
Furthermore, it misdirected itself in failing to find per the
evidence led that the respondent's offer had not been accepted by
the appellant.
6.
The court a
quo
further
erred in imposing a contractual obligation of loan/mortgage financing
which did not form part of the agreement between the parties and
which did not exist at the time of contracting as per the evidence
led.
7.
The court a
quo
further erred and misdirected itself in failing to find that the
admissions made by respondent entitled appellant to succeed on its
case and have the counterclaim dismissed. These were:
(a)
The property is registered in the name of the appellant who still
possesses all rights of ownership in terms of the title deed.
(b)
Respondent had not paid the full purchase price, whether for the half
portion or for the full portion. It doesn't matter which portion he
has not paid and persists in breach beyond the contracted time period
(sic).
(c)
The appellant like any other party had a right to cancel the
agreement and claim eviction and holding over damages consequent to
cancellation.
8.
The court a
quo
further erred and misdirected itself in disregarding the
uncontroverted evidence that the land in issue was a half-acre
portion as opposed to a full acre regard being had to the mandate to
sell letter and to the advertisement placed by appellant.
9.
The court a
quo
further erred and misdirected itself in failing to find that the
agreement to sell a portion of land absent a subdivision permit was
in any event unlawful and could consequently not be enforced.
The
appellant's grounds of appeal in my view raise the following issues
for determination:
1.
Whether or not the court a
quo
granted
relief not sought by either of the parties.
2.
Whether or not the court a
quo
erred in dismissing the appellant's claim.
3.
Whether or not the court a
quo
erred in granting the respondent's counterclaim.
I
will proceed to deal with these issues seriatim.
APPELLANTS
SUBMISSIONS BEFORE THIS COURT
[26] Counsel
for the appellant, Mr.
Hashiti,
argued
that the court a
quo
fell into error when it granted relief which was not sought by either
of the parties. It was counsel's submission that the court a
quo's
finding that the subdivision permit was null and void was made in
error as the issue of its legal effect was never an issue for
determination before the court. Counsel argued that the court found
that it could not interdict the operation of the subdivision permit
as the permit had already been granted and yet the court a
quo
went on to grant the respondent's counterclaim including the part
which sought to interdict the appellant from subdividing the
property.
[27] It
was also counsel's submission that para 3 of the order granted by
the court a
quo
was made in error as the court enforced a non-existent agreement made
on 30 August 2009 when the verbal agreement was in September 2009.
[28] The
appellant submitted that the court a
quo
erred in granting a computation of figures which were to be included
in the agreement of sale. In support of the point counsel argued that
the court misdirected itself when it ordered that the respondent was
to pay US$14,384.01 through a bank loan when the respondent by his
own admission during trial maintained that he owed US$16,000.
[29]
In relation to the issue of whether or not the respondent proved his
counterclaim, counsel for the appellant argued that the respondent by
his own admission stated that in a period of over nine years he
failed to pay the full purchase price of the property. He thus had no
valid claim to the property which remained under the ownership and
title of the appellant.
[30 It
was appellant's further argument that the respondent's claim that
he was to obtain a bank loan to pay off the outstanding amount was
never agreed to as between the parties and therefore the court a
quo
should not have granted an order allowing the respondent to pay the
outstanding balance through a bank loan.
[31] Counsel
concluded by submitting that it was a basic principle of law that
where a person occupies another person's property he or she must
pay rent. Counsel thus argued that the respondent, having been in
occupation of the property for over nine years without being able to
satisfy the purchase price, was liable to pay the appellant damages
of US$58,000 and holding over damages of US$700 per month calculated
from 1 June 2017 to the date of eviction.
RESPONDENT'S
SUBMISSIONS BEFORE THIS COURT
[32] Per
contra,
counsel for the respondent, Mr. Musimbe,
submitted
that the court a
quo
did not misdirect itself in its findings as it dealt with all the
issues which were raised in the pre-trial conference minutes. Counsel
submitted that the court had to resolve whether there was a breach by
the respondent. Counsel further submitted that the events that led to
the appellant issuing summons only arose after the respondent wrote
to it informing it to stop the subdivision of the property as this
was a breach of the agreement of sale.
[33] It
was counsel's argument that the court correctly believed the
respondent's version of how the purchase price was paid. He also
submitted that the respondent made efforts to pay off the outstanding
balance by paying the US$300 for a written contract which would help
him secure a loan.
[34] The
appellant's witness, Machengo, made concessions during the trial
which destroyed the appellant's claim. Counsel thus argued that the
appellant's case was full of improbabilities and inconsistencies.
He therefore submitted that the judgment of the court a
quo
was
unassailable and prayed for the dismissal of the appeal.
APPLICATION
OF THE LAW
Whether
or not the court a
quo
granted relief not sought by either of the parties
[35] Before
the court a
quo,
the appellant sought an order for the eviction of the respondent and
all those claiming occupation through him, damages in the sum of
US$58,000, holding over damages at the rate of US$700 per month
calculated from 1 June 2017 to the date of eviction and costs of suit
on a higher scale. The respondent in his counterclaim sought an
interdict restraining the appellant from subdividing the property and
an order that the appellant take all necessary steps to prepare a
written agreement of sale which would reflect the terms of the verbal
contract and the outstanding balance of US$16,000.
[36] The
appellant's claim was dismissed by the court a
quo
and the respondent's counterclaim granted. The question of whether
or not the court granted competent relief sought by either of the
parties shall thus be determined with regard to the order granted in
favour of the respondent only.
[37] The
court a
quo
found that it could not grant an interdict against the subdivision
permit as the permit had already been issued. The court also found
that the subdivision permit was null and void. The court upon making
this finding thereafter proceeded to grant the respondent's
counterclaim in its entirety. In my view this was the first error
made by the court a
quo.
[38] As
if this was not enough the court went ahead and ordered that the
appellant to facilitate the writing of an agreement of sale between
the parties. The court a
quo
laid out the terms to be included in the agreement of sale. A close
reading of the judgment of the court shows a marked discrepancy
between what was prayed for by the respondent and what was eventually
granted.
[39] Firstly,
it should be noted that it is an accepted principle of our law that
it is not open to a court to rewrite terms of a contract for the
parties. A court cannot infer or imply terms of a contract between
parties but must simply interpret the terms of the contract in the
event that a dispute arises. In Magodora
& Ors v Care International Zimbabwe
2014 (1) ZLR 397 (S) at 403C-D it was reiterated by the Court that:
“In
principle, it is not open to the courts to re-write a contract
entered into between the parties or to excuse any of them from the
consequences of the contract that they have freely and voluntarily
accepted,…”
Further
in
Wells
v Southern African Alumenite Co.
1927
AD 69 at 73 Innes J expressed that:
“If
there is one thing which more than another, public policy requires,
it is that men of full age and competent understanding shall have the
utmost liberty of contracting, and that their contracts, when entered
into freely and voluntarily, shall be held sacred and shall be
enforced by the courts.”
[40] Paragraph
3 of the order of the court a
quo
clearly shows that the court fell into error in failing to appreciate
the sacrosanct nature of the contract which existed between the
parties. Even if it was clear that the agreement between the parties
was marred by different versions of events, the court could not
dictate the terms of the agreement as the court was not party to the
agreement nor was it present when the verbal agreement was concluded.
[41]
To further compound the error on the order the court wrongly computed
the dates when the agreement was made. Both parties agreed that the
agreement was made in September 2009 and not 30 August 2009 as stated
by the court. The court went on to compute figures for the parties,
which figures were disputed by the appellant and which were equally
not clearly proved by the respondent.
[42] The
court a
quo
ordered that the agreement be written to reflect that the respondent
paid a deposit of US$15,000 on 4 September 2009, that he paid a total
of US$56,900 to date towards the purchase price plus interest and
that the outstanding balance to be paid by the respondent was
US$14,384.01 to be paid through a bank loan. The court however failed
to take cognizance of the fact that in making his counterclaim the
respondent stated the terms of the contract between the parties.
Under para 17 of his claim he averred that he paid a deposit of
US$15,000, paid instalments of US$37,000 for a period between 30
September 2009 to 1 May 2010 and that a balance of US$16,000
remained.
[43] The
court a
quo
could not draft a new contract for the parties and dictate new terms.
The terms in the order were not the terms admitted and set out by the
respondent in making the counterclaim. The court did not give
justification for arriving at the amount it stated as US$56,900
(being the purchase price and interest) as the respondent himself
never made reference to the amount of interest he paid in making the
purchase price.
The
court further arrived at the outstanding amount of US$14,384.01
without showing how such amount was calculated and yet the respondent
had made an admission that the outstanding balance was US$16,000. It
can thus be deduced that the court misdirected itself by purporting
to lay out terms of an agreement it was not a party to.
[44] Secondly,
the court a
quo
granted the respondent's counterclaim despite finding that it could
not grant the interdict sought because the subdivision permit had
already been granted. The court also went on to find that the
subdivision permit was null and void. A reading of the record shows
that neither of the parties sought a declaration on the legality of
the subdivision permit. Further the record shows that the respondent
did not motivate his claim by satisfying the requirements for an
interdict but the court still made a finding on the interdict sought.
[45] A
court must determine a matter based on the papers and evidence placed
before it by the parties. It cannot go on a frolic of its own. This
principle was stated in
Nzara
and Ors v Kashumba N.O. and Ors
SC18/18
at page 13 of the cyclostyled judgment wherein the Court held that:
“The
function of a court is to determine the dispute placed before it by
the parties through their pleadings, evidence and submissions. The
pleadings include the prayers of the parties through which they seek
specified orders from the court. This position has become settled in
our law. Each party places before the court a prayer he or she wants
the court to grant in its favour. The Rules of court require that
such an order be specified in the prayer and the draft order.
These
requirements of procedural law seek to ensure that the court is
merely determining issues placed before it by the parties and not
going on a frolic of its own. The court must always be seen to be
impartial and applying the law to facts presented to it by the
parties in determining the parties issues.”
[46] Also,
in Proton
Bakery (Pvt) Ltd v Takaendesa
2005
(1) ZLR 60 (S) at page 62E-F, Gwaunza JA (as she then was) noted the
following:
“The
appellant argues, in light of all this, that the action of the court
a
quo
in reaching a material decision on its own, amounted to gross
irregularity justifying interference by this court on the principles
that have now become trite.
I
am, for the reasons outlined below, persuaded by this argument…
The
misdirection on the part of the court a
quo
is left in no doubt. It is in my view, so serious as to leave this
Court with no option but to interfere with the determination of the
lower court.”
[47] The
court a
quo
thus
erred and misdirected itself by mero
motu
granting relief which had not been sought by the respondent in his
counterclaim. Such misdirection warrants interference by this Court
as the court clearly went on a frolic of its own.
Whether
or not the court a
quo
erred in dismissing the appellant's claim
[48] The
court a
quo
dismissed the appellant's claim on the basis that its case:
“… was
riddled with inadequacies of evidence, manifestly illogical, pregnant
with concessions favourable to the defendant, diametrically opposed
to the documentary evidence, against the probabilities, wanting in
credibility in respect of the sole witness called by the plaintiff
and quite simply hopeless. In a nutshell, this trial was a sheer
waste of the court's time.”
[49] The
court found that the appellant failed to prove the claim for eviction
of the respondent from the property as well as the claim for damages
and holding over damages. It is imperative to note that the appellant
as well as the respondent in making their respective claims had to
prove their cases on a balance of probabilities
(see Zimbabwe
Electricity
Supply Authority v Dera
1998
(1) ZLR 500 (SC)).
[50] In
its claim the appellant was obliged to prove, firstly, that it had
title over the property and had a right to seek the eviction of the
respondent from the property. The court a
quo
in assessing the appellant's evidence was of the view that its
witness was not truthful. It believed the respondent and came to the
conclusion that the cancellation of the agreement by the appellant
was null and void and of no effect. The court further concluded that
by subdividing the property the appellant wanted to resell the
property behind the respondent's back and to prevent the respondent
from enjoying his rights to the property.
[51] The
court a
quo,
however, failed to appreciate one important fact. It was not in
dispute that the respondent was in breach of the verbal agreement of
sale. As at the time when the matter was heard a
quo
and to date, the respondent is in continued breach of the agreement
of sale as he has not paid the full purchase price for the property.
In my view, questions around whether or not the property was sold in
its entirety, whether or not the property was sold for US$68,000 or
US$75,000 and whether or not the subdivision permit is legal and
affects the rights of the respondent on the property could only be
answered after the respondent had remedied his breach.
[52] It
was an agreed term between the parties that the full purchase price
would be paid by the respondent on or before 30 August 2010. It is
not in dispute that the respondent failed to pay the outstanding
balance to the appellant for a period of over nine years. The
appellant gave notice of the breach and cancelled the agreement of
sale. At the trial the respondent testified that he failed to pay the
outstanding balance due to the failure by the appellant to draft a
written agreement which he could use to obtain a mortgage from the
bank. Under cross examination the respondent changed positions and
admitted that he did not pay the outstanding balance because he saw
that he was dealing with: “crookey dodgy people who just wanted me
to finish pay off then they say they did not sell…”
[53] The
respondent further admitted during cross examination that the
appellant had a right to terminate the agreement in the event of a
breach. For the sake of completeness I will quote the relevant
evidence before the court a
quo:
“Q.
Now I want you to look at the undertaking you made under the method
of payment, you wrote 'I undertake to pay the full amount not later
than 30 August 2020;' do you see that?
A.
Correct.
Q.
'Failing which the seller may proceed to terminate the agreement of
sale;' do you see that?
A.
Correct.
Q.
Did you make full payment of any amount by 30 August 2010?
A.
I did not.”
[54] Having
been admitted and established that the respondent failed to pay the
full purchase price by the agreed date, the court a
quo
ought to have been alive to the fact that the appellant remained with
a valid title over the property and had the right to cancel the
agreement when there was a breach. The court a
quo
fell into error by clouding issues and failed to determine the issue
that was squarely before it. The issue of the appellant failing to
provide a written agreement after the respondent paid the drafting
fee so as to enable him to obtain a mortgage loan was never a term of
the original agreement.
[55] It
is a fundamental principle of every contract that both parties will
duly carry out their respective obligations (see Blumo
Trading (Private) Limited v Nelmah Mining Company (Private) and
Another
HH39/11). In the event that a party fails to carry out its obligation
this will amount to a breach of the contract or agreement. In R. H.
Christie, Business Law in Zimbabwe (Juta & Co. Ltd) at page 119
the learned author states that:
“Breach
may take a number of forms other than mora,
and whether a breach has been committed will be decided by comparing
what the debtor has done or not done with what he ought to have done
on a proper interpretation of the contract… Once it is decided that
a breach has been committed it is necessary to decide whether the
creditor is entitled to the most drastic remedy of cancellation or
whether he must be content with one or more of the other available
remedies.”
[56] The
admission by the respondent that he failed to pay the full purchase
price amounted to a breach of the agreement of sale which gave the
respondent the right to cancel the agreement between the parties. As
such, the respondent cannot continue to have occupation of the
property while he is in breach of the agreement of sale. The
ownership rights of the appellant must be protected. In the case of
Alspite
Investment (Pvt) Ltd v Westerhoff 2009
(2) ZLR 236 it was stated that there are no equities in an
application for a rei
vindicatio
as it is a principle of our law that an owner as a general rule
cannot be deprived of his property against his will.
[57] With
respect to the appellant's claim for damages in the sum of
US$58,800 calculated at the rate of US$700 per month as reasonable
rental income from the date of occupation to date of summons and the
claim for holding over damages in the sum of US$700 calculated from 1
August 2017 to the date of eviction, it is our view that these claims
were not substantiated or proved at trial.
Whether
or not the court a
quo
erred in granting the respondent's counterclaim
[58] As
discussed above, the respondent did not motivate or satisfy the
requirements of an interdict. The court in turn found that it could
not grant the interdict sought although it went on to make a contrary
finding that the permit was null and void.
[59] The
respondent was equally in breach of the agreement of sale and as such
could not be granted the relief he sought for the appellant to
provide a written agreement of sale, as the appellant had already
exercised its right to cancel the agreement of sale. There was
therefore no basis upon which the court could grant the respondent's
claim as it did.
[60] The
court made factual findings in arriving at the decision to allow the
respondent's claim. It
is a settled principle that this Court will not easily interfere with
factual findings made by a lower court unless the findings are
grossly unreasonable. (See ZINWA
v Mwoyounotsva
2015 (1) ZLR 935 (S); Hama
v NRZ
1996
(1) ZLR 664 (S); Reserve
Bank of Zimbabwe v Corrine Granger and Another
SC34/01). I find that the findings of the court a
quo
in granting the respondent's claim when he was in breach of the
agreement of sale were so unreasonable as to warrant interference by
this Court.
DISPOSITION
[61] The
court a
quo
misdirected itself in granting the respondent's claim in
reconvention when he was in breach of the agreement of sale. The
court also misdirected itself when it failed to realize that as the
respondent had failed to fulfil the obligations under the agreement
of sale the appellant remained the title holder of the property and
could exercise its right to cancel the contract on the basis of the
breach and recover possession of the said property. The appeal will
thus partially succeed in this regard. The court, however, correctly
found that the appellant failed to prove its claim for damages and
holding over damages as the respondent was not a tenant and was
therefore not expected to pay rentals.
[62] With
regard to costs the appellant has been partially successful and costs
must follow the cause.
[63] In
the result, it is ordered as follows:
1.
The appeal be and is hereby partially allowed with costs.
2.
The judgment of the court a
quo
is
hereby set aside and substituted with the following:
“1.The
plaintiff's claim for eviction of the respondent and all those
claiming occupation through him from number 12 Le Roux Drive,
Hillside, Harare is granted.
2.
The plaintiff's claim for damages in the sum of US$58,800 and
holding over damages be and is hereby dismissed.
3.
The defendant's counterclaim is hereby dismissed.
4.
There shall be no order as to costs.”
PATEL
JA: I
agree
BHUNU
JA: I
agree
Mushoriwa
Pasi Corporate Attorneys,
appellant's legal practitioners
IEG
Musimbe and Partners, respondent's legal practitioners