COMMERCIAL & CORPORATE LAW

Whether a party in Zimbabwe can rely on a draft unsigned contract?

The question of whether a party in Zimbabwe can rely on a draft unsigned contract was answered by the Supreme Court in Zimbabwe in Afritrade International Ltd v Zimbabwe Revenue Authority SC 3-21 wherein the court held that, in principle an unsigned contract cannot be ordinarily relied upon as creating a valid and binding contract in Zimbabwe. However, in Zimbabwe the surrounding circumstances, including prior dealings between the parties to the contract concerned, may give rise to the prima facie presumption that the terms and conditions embodied in a draft unsigned contract represent the true intention of the parties. In Zimbabwe the burden of proof is on the party disputing the authenticity of the draft unsigned contract and to show that it was not intended to be binding on the parties. see Associated Printing and Packaging (Pvt) Ltd & Others v Lavin & Another 1996 (1) ZLR 82 (S) 87.

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