CHITAKUNYE J: The
plaintiff's claim was for specific performance of an agreement of
sale, for the cession of personal rights and interests held jointly
by the first defendant and second defendant in a property known as
5706 Muroro Crescent, Glen Norah B, Harare.
The plaintiff asserted that he entered into the agreement with the
first and second defendants on the other hand through the agency of
PMA Real Estate Agency (Pvt) Ltd.
The first defendant denied that he ever entered into an agreement of
sale with plaintiff. He denied authorising PMA Real Estate Agency to
sell his rights and interests in house No. 5706 Muroro Crescent Glen
Norah B, Harare.
The first defendant Zondai Chimbwanda and the second defendant
Givemore Karimazondo are joint holders of certain personal rights and
interests in the property known as No. 5706 Muroro Crescent Glen
Norah B Harare in equal shares. As holders of equal shares in the
said property they agreed between themselves to dispose of their
rights and interests in the property. Pursuant to this understanding
second defendant approached PMA Real Estate and granted them a
mandate to sell the said rights and interests.
At the material time first respondent was out of the country in
Botswana.
In completing the mandate to sell form, second defendant endorsed
both first and second defendants names as holders of rights and
interests in the property. That form was however signed by second
defendant only.
PMA Real Estate Agency proceeded to advertise the property and
plaintiff expressed interest. On 16 August 2005 the plaintiff
executed an irrevocable offer and acceptance form in which he offered
a purchase price of $220 million. On 17 August 2005 second defendant
appended his signature to that form in acceptance of the offer as
seller.
Thereafter on 18 August 2005 an agreement of sale was drawn up by PMA
Real Estate Agency. The agreement of sale was executed by plaintiff
and second defendant.
The plaintiff paid a deposit of $214 million to PMA Real Estate and
the balance was to be paid in instalments.
The purchase price was subsequently revised upwards to Z$260 million.
The plaintiff paid the balance of the purchase price to PMA Real
Estate Agency. The agreement of sale was amended to reflect the new
purchase price of Z$260 million (see exb. 5).
It is common cause that when the parties entered into the agreement
of sale they knew that the agreement was conditional on first
defendant ratifying the agreement upon his return from Botswana.
The first and second defendants subsequently sold the same rights and
interests in the property in question to the third defendant in
September 2005 for the price of Z$350 million.
Third defendant duly paid the purchase price and has since taken
occupation of the property.
His effort at obtaining cession was stalled when PMA Real Estate
Agency advised fourth respondent that the same property had been sold
to plaintiff and so no cession should be effected.
The plaintiff therefore brought this suit against first and second
defendants seeking:-
(1) cession of Stand No.5706 Muroro Crescent, Glen Norah B Harare
into his name, alternatively;
(2) the sum of
Z$15 billion being the cost of a house similar to Stand 5706, as at
the date of the summons being 14 November 2007.
The first defendant denied that he had ever agreed to the purchase
price purportedly paid to PMA Real Estate by plaintiff and he also
contended that he never ratified the agreement of sale.
The second defendant in his plea conceded that he had entered into
that agreement conditional on first defendant ratifying it.
The issues for determination were essentially three namely:-
(1) Whether
there was a binding agreement of sale between plaintiff and first and
second defendants or not;
(2) If the
answer to the above is in the affirmative, whether third defendant
was himself an innocent third party purchaser.
(3) If so, who
between the two purchasers has dominant rights over the property in
dispute.
It is pertinent to note that a conditional sale can only be
valid/binding where the condition precedent has been fulfilled.
It is the fulfilment of the condition that gives life to such an
agreement.
In casu
the plaintiff and PMA Real Estate were made aware that whatever they
were entering into with second defendant was conditional upon second
defendant ratifying such agreement.
In this regard
it may be noted that ratification is the act of adopting a contract
or other transaction by a person who was not bound by it originally.
See Osborne's Concise Law Dictionary 6th
Edition by J. Burke.
The prerequisite of ratification maybe stated as follows:-
“1. The
contract must be professedly made on behalf of the principal.
2. There must
be a competent principal at the time of the contract.
3. The
contract must not be void.
See Cheshire,
Fifoot and Furmstan's Law of Contract 11th
Edition @ p 641.
Ratification maybe express or tacit. Ratification maybe implied from
an act or conduct showing an interest to adopt the contract.
In casu
the plaintiff alleged that the first defendant ratified the agreement
of sale that had been entered on his behalf as joint-holder of rights
and interest by second defendant.
In support of his case, plaintiff gave evidence and called two
witnesses from PMA Real Estate Agency namely Simon Mukondo and Jerry
Ndemera.
First defendant gave evidence. Second defendant did not avail himself
for trial though he had participated in the proceedings upto the
pre-trial conference stage.
In his evidence the plaintiff alluded to the fact that he himself
never came into contact with first defendant. His assertion that
first defendant ratified the agreement of sale was based on reports
he received from PMA Real Estate Agency. He thus could not vouch for
certainty that first defendant either by word of mouth or in writing
ratified the agreement. All the documentary exhibits he tendered in
support of his case did not have first defendant's signature.
The conduct that he could only refer to was again based on reports he
received from PMA Real Estate that first defendant had given his
consent to the agreement of sale subject to an upward increase in the
purchase price.
He had no direct evidence of first defendant ratifying the agreement
of sale.
Mr Simon Mukondo gave evidence next. He is a co-shareholder in PMA
Real Estate Agency. He is also the Principal Registered Agent of PMA
Real Estate Agency.
His evidence was to the effect that PMA Real Estate Agency was given
mandate to sell by second defendant. Second defendant had made it
clear the rights and interests were jointly held. That mandate to
sell was signed by second defendant as seller. The co-holder of
rights and interests first defendant did not sign the mandate to sell
and did not in his own right, give such mandate.
Second defendant did not provide a power of Attorney or some other
written authority from first defendant for him to dispose first
defendant's rights and interests in the property in question.
Despite this omission PMA Real Estate Agency proceeded to advertise
and sell the rights and interests as instructed by second defendant.
This PMA Real Estate did on second defendant's word that he had
such mandate and that first defendant would ratify the agreement of
sale upon his return from Botswana.
The agreement of sale was executed on 18 August 2005.
It was Mr Mukondo's evidence that on the next day after execution,
Mr Jerry Ndemera and second defendant approached him in his office.
They advised him that the two of them had been in touch with first
defendant on the phone who was still in Botswana. They advised that
first defendant had dictated terms for them to re-do the agreement.
They had the dictated terms on a piece of paper. That piece of paper
was tendered into evidence as part of plaintiff's bundle of
documents. The document in question is on page 7 of the said bundle.
The terms on the document were that:
1. that the
selling price should be increased to Z$260 million;
2. that the
payment would be strictly cash of Z$220 million and balance of Z$40
million would be paid in two instalments in the months of September
and October; and
3. that the
seller who was present tenant would vacate when schools calendar for
3rd
term 2005 ended;
4. the last
point was that once the last payment was done in October the seller
would become a tenant paying rent.
As at that stage when these terms were brought to his attention, Mr
Mukondo had not seen or spoken to first defendant.
Mr Mukondo
said that he saw the first defendant for the 1st
time when first defendant came with second defendant in the company
of a woman he thought/believed was first defendant's wife.
When this trio came, first defendant demanded to be paid the purchase
price. They refused to release the money to him contending that they
could not do so before cession. First defendant had then offered that
cession be done that same day but this was not done. The first
defendant had then said that if he was not paid on that day then the
purchase price would go up.
The first defendant was not made to sign the agreement of sale or any
other document relating to the agreement of sale of his rights and
interests in the property in question.
The next witness was Mr Jerry Ndemera. At the material time he was
employed by PMA Real Estate Agency as Sales Manager.
In his evidence Mr Ndemera confirmed that PMA Real Estate Agency
dealt with second defendant upon second defendant's word that he
had the mandate to sell from the co-holder of rights and interests in
the property.
There was no request or insistence on second defendant furnishing the
requisite power of Attorney or and other written authority from first
defendant.
PMA Real Estate Agency were spured to act simply on second
defendant's assurance.
It was not till after the agreement of sale had been concluded that
he saw first defendant.
On his 1st
meeting with first defendant first defendant did not agree with what
had been entered into. According to Mr Ndemera, first defendant came
to see him on the day page 7 of the plaintiff's bundle of document
was written.
Mr Ndemera contradicted Mr Mukondo's evidence on how this document
came to be.
His evidence was to the effect that this document was written by
first defendant on the day first defendant came to their offices. He
is the one who infact provided first defendant with the piece of
paper to write on when first defendant indicated there were some
terms to be changed.
The contradiction was in that Mr Mukondo had said Mr Ndemera had
indicated to him that first defendant had dictated those terms on the
phone from Botswana and not that first defendant had come to their
offices.
Despite Mr Ndemera's contention that this document was written by
first defendant, he was unable to explain why first defendant did not
append his signature thereto. Instead the signature thereon is that
of Mr Ndemera, just as he had signed for second seller in exh. 1, the
agreement of sale.
If indeed first defendant had on this occasion ratified the agreement
of sale albeit with an increased purchase price and additional terms,
he would at least have signed on this document to signify his
approval of the transaction, if those terms were accepted by the
plaintiff.
It was Mr Ndemera's evidence that first defendant must have come to
their offices on 2 or 3 times. Somehow he was not made to sign the
agreement of sale which the plaintiff says he had ratified.
It may also be noted that both Mr Mukondo and Mr Ndemera indicated
that when first defendant came to PMA Real Estate Offices he demanded
payment. When asked to sign the agreement of sale first defendant
said he wanted to be paid before he could sign.
This in my view is inconsistent with a party who had ratified the
agreement and had assumed his obligations as contained in the
agreement of sale.
Further, both Mr Mukondo and Mr Ndemera admitted that when first
defendant came in the company of his wife, this was after a PMA Real
Estate employee had been to first defendant's residence with an
armed police officer. At that residence, they had forced first
defendant's mother to append her signature to a document tendered
in as exh. 8. That document invited first and second defendants to
come and activate the process of transfer.
The visit by first defendant and his wife was therefore to complain
about that visit by PMA Real Estate employee and the armed police
officer. This is the visit Mr Mukondo apparently recalled.
It is clear to me that though first defendant visited PMA Real Estate
Agency offices he never signed the agreement of sale or any document
showing that he consented to the sale of his rights and interests in
the property in question.
He never ratified the agreement of sale in writing.
The tacit ratification that Mr Mukondo and Mr Ndemera alluded to
needed to be proved. The conflict in the evidence of Mr Mukondo and
Mr Ndemera, as key witnesses to the issue of ratification on such
aspects as who authored the document on page 7 of plaintiff's
bundle of documents, the number of visits made by first defendant to
PMA Real Agency and the fact of a PMA Real Estate Agency employee
visiting the first defendant's residence in the company of an armed
police officer to force matters, creates doubt on the credibility of
their testimony.
They did not impress me as reliable witnesses.
They may have had cause to believe second defendant when he told them
that he had first defendant's mandate to sell and that first
defendant would ratify the agreement of sale but that was not
adequate. They ought to have obtained consent or mandate from first
defendant himself to proceed with the sale.
They could easily have demanded that second defendant furnishes them
with a Power of Attorney for them to action second defendant's
mandate to sell.
Equally when first defendant availed himself at their offices they
ought to have clarified the issue by ensuring that he ratified the
agreement in an unequivocal manner. To seek to rely on tacit
ratification or consent to the agreement was always going to be
difficult.
The onus is on the plaintiff to prove on a balance of probabilities
that the first defendant ratified the agreement of sale for it to be
binding on him.
A careful analysis of the evidence adduced in court on this issue
does not show that plaintiff discharged such onus.
The evidence showed that when second defendant entered into the
agreement of sale he made it clear that he was also doing so for and
on behalf of his co-holder of rights and title and that the co-holder
would have to come and ratify the agreement. First defendant was a
competent co-holder to ratify the agreement had he wanted to. The
agreement of sale was not void. It was capable of ratification.
The failure is on the fact that the plaintiff has not proved on a
balance of probabilities that first defendant adopted the agreement
of sale.
As the agreement of sale was conditional upon first defendant's
ratification, it follows that there was no valid agreement of sale to
bind first defendant.
In the circumstances, the first defendant was free to enter into a
sale agreement with anyone that the joint holders of rights and
interests in the property preferred.
In this case they sold their rights and interests to third defendant.
There was no legal impediment to such a transaction.
The plaintiff's remedy if at all he felt hard done is against those
who led him to part with his money when the agreement had not been
ratified.
Accordingly
the plaintiff's claim is hereby dismissed with costs.
Uriri Attorneys-At-Law,
plaintiff's legal practitioners
Machuwaire & Associates,
3rd
defendant's legal practitioners