COMMERCIAL & CORPORATE LAW

Validity of unsigned contracts in Zimbabwe

In Zimbabwe, a contract does not need to be in writing or signed to be valid. The exception to this appears to be in respect of agreements for the sale of land. Section 7 of the Contractual Penalties Act [Chapter 8:04] requires that every instalment sale of land in Zimbabwe be reduced to writing. Resultantly, in Zimbabwe a contractual document which has not been signed by one party to the contract does not necessarily imply that no contract was concluded. see Rainbow Tourism Group Ltd v Nyaruwata SC 87-24.

The validity of unsigned contracts in Zimbabwe was considered by the Supreme Court of Zimbabwe in Afritrade International Ltd v Zimbabwe Revenue Authority SC 3-21 at page 11 as follows:

“In principle, an unsigned agreement cannot ordinarily be relied upon as creating a valid and binding contract. However, the surrounding circumstances, including prior dealings between the parties concerned, may give rise to the prima facie presumption that the terms and conditions embodied in an unsigned agreement represent the true intention of the parties. The burden then shifts to the party disputing the authenticity of the agreement to show that it was not intended to be binding.”

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