Mundia v National Drug Company Limited (Appeal 106 of 1998) [1999] ZMSC 7 (15 March 1999)

SUPREME COURT

BWEUPE, D.C.J.

16^TH MARCH, 1999

APPEAL NO. 106 OF 1998

Law of Contract - Conveyance of property - breach of contract - specific performance.

Law of Contract - LAZ Conditions of Sale - whether proper procedure was adopted.

The Appellant instituted proceedings in the High Court for specific performance of the Contract of Sale for the property known as Plot No. 61 Jasmondine, Lusaka. In 1996 the Respondent and the appellant entered into a Contract of Sale wherein the Respondent is the Vendor and the Appellant is the Purchaser. It is a standard agreement of sale drawn on the Law Association of Zambia Contract and Conditions of Sale. Both the Appellant and Respondent instructed Messrs Lukona Chambers. Consideration was K40 million. Under special conditions, the property was sold subject to the Purchaser paying 25% of the purchase price. The balance was to be paid within sixty (60) days of the date of the Contract. The Purchaser paid K10 million representing the 25% of the purchase price. The Contract was executed in June 1996. On these grounds the Judge refused to grant specific performance and in addition ordered the appellant to forfeit to the Vendor K10 million deposit which was 25% as stipulated in the Contract of Sale. On appeal the Appellant argued that the Respondent should have given him 14 days notice as stipulated by special condition 21 (a) of the Law Association of Zambia Contract and Conditions of Sale.

Held:

The Appellant should have been given at least 14 days notice in writing by the Respondent. No Notice to Complete was given and there was no finding that time was of the essence to the Contract. Appeal allowed.

For the Appellant J. Sangwa of Messrs Simeza, Sangwa and Associates.

For the Respondent P.S. Kamanga of Mesrss P.S. Kamanga and Company.