Mrs. Waters a 70 year old lady is approached by Mr. Dzingai to sell her house in Bulawayo to him 20 000 British pounds. Mr. Dzingai undertakes to pay the money to her by depositing it into a bank account held by Mrs. Waters in London. In order to disguise their transaction Mrs. Waters is to effect transaction Mrs. Waters is to effect transfer of property into the name of Mr. Dzingai by 28 February 2014, when he is to have paid the full purchase price, reflected therein as $30 000 united States dollars which they had agreed earlier would be the equivalent to the price in British pounds. Mr. Dzingai pays an amount of 17 000 British pounds into Mrs. Waters account with her bankers in London and furnishes her with deposit slips in respect of these payments. Mr. Dzingai, through his sister in Bulawayo, approaches Mrs. Waters late at night asking her to sign an undated document reflecting an altered exchange rate. His sister’s explanation to Mrs. Waters of the necessity for the altered agreement is that Mr. Dzingai requires this agreement for purposes of obtaining a loan in the United Kingdom to pay the balance of the purchase price. She then, through another lawyer, demands transfers of the property into her name, on the basis of this agreement, alleging that the purchase price has been paid in full. Advise Mrs. Waters fully as to the rights and remedies available to her, referring to decided cases. [25marks]

Contract of sale between Mrs Waters and Mr Dzingai

Agreement of Sale – Contract – (House)

Offerer Person  –  Mr. Dzingai

Offeree Person  –  Mrs. Waters

The law of contract states that “a Contract is a lawful agreement  made by two or more people within the limit of their contractual capacity, with serious intensions of creating a legal binding (create a legal obligation) communicating such intension, without vagueness, each to the other and being of the same mind as to subject matter to perform positive or negative acts possible of performance”. 

Problems found

Undue Influence, Duress, Breach of contract, Late Payment, Contract has been altered with, altered exchange rate, Misrepresentation of facts, Fraudulent

Lawful Agreement

The law of contract states that the agreement must be lawful:  therefore the contract between Mrs. Waters and Mr Dzingai is not at first lawful as the case states that “In order to disguise their transaction Mrs Waters is to effect transfer of property into the name of Mr. Dzingai by 28 February 2014”.  The clause “In order to disguise their transaction” shows some element of unlawfulness maybe in-order to avoid tax.  This contract could be on the word of mouth, a verbal contract because we are not told that Mr. Dzingai and Mrs Waters drafted any document down and signed to form a lawful contract nor did they present their agreement in front of a lawyer.  Therefore this contract sounds as not valid, it is void.

Undue Influence: It makes a contract voidable at the instance of the influenced party:

In the case of Mrs Waters a 70 year old  woman and Mr Dzingai who are  in consensus ad idem  has so many problems linked to one case as Mrs Waters is now 70 years of age Mr Dzingai could have unduly influenced her to sell him her house. Mrs Waters can revoke the contract on the bases that she is old and mentally weak and exhausted to make such big decisions.  Dzingai influenced her to sell him, he house with an Offer of £20 000.00 of which she agreed to do soon the based to obtain the whole amount as of 28 February 2014.  Dzingai’s sister approaches Mrs Waters at night to unduly influence her to sign a contract with her to her name instead of her brother Mr Dzingai.

Duress and Fraudulent

Dzingai sister is the third part, who approaches Mrs Waters at night which can be intimidating and she is now duping his brother Mr. Dzingai in-order to have the house named under her when she was not in contract with Mrs. Waters, while Mrs. Waters and Dzingai’s sister are not in consensus, the sister is the third part who is sent by the brother to stand in for him.  The sister asks Mrs. Water to sign an “undated document reflecting and altered exchange rate”.  “She then, through another lawyer, “demands’ transfer of  the property into her name, on the basis of this agreement”, “demands” has an action of threats and intimidating using her lawyer is duress

Breach of contract

Mr Dzingai pays not the full amount but paid £17000 British pounds instead of £20 000-00 British pounds they have agreed on which makes the contract voidable.  The balance due to Mrs. Waters is £3 000.00 pounds which was not paid on the specified time frame as a contract must be made within the limits of contractual parties capacity. “Time is essential.”

Misrepresentation: is an untrue statement or representation concerning an existing fact of state of affairs which is made by one party to another in order to induce the other party to concluding the contract.  If a contracting party is induced into a contract by false representation of an outsider, then arises a misstatement not misrepresentation.  Dzingai’s sister is inducing Mrs Waters into signing a second contract unknowingly to her and her brother Dzingai, “alleging that the purchase price has been paid in full.” this is untrue statement or representation.  Dzingai’s sister is in disguise which is violation of a valid contract.

RIGHTS AND REMEDIES

1. Mrs Waters has the right to revoke and cancel the contract on the grounds of third party and fraudulent activities of both the sister and the presentation of a transfer that has been altered.
2. Mrs Waters can revoke the contract and transfer back the £17 000.00 paid to her account by Mr. Dzingai on the bases that Mr. Dzingai did not pay the whole amount agreed upon on the 28 of February 2014. The amount reflecting on her account has a shortfall of £3000.00pounds of which they had agreed upon £20 000.00, so Mrs Water can revoke the contract based on this issue of unfulfilled contractual terms of settlement.
3. Dzingai’s sister is duping her brother Mr. Dzingai. There are flaws; a contract must be a legal binding.
4. Contract was between Mrs Waters and Mr. Dzingai not his sister.