Elements of Valid Contract
Elements of Valid Contract
JUDICIARY
IN THE HIGH COURT OF TANZANIA
(LABOUR DIVISION)
AT MBEYA
REVISION NO. 11 OF 2020
(Arising from the Award of the Commission for Mediation and Arbitration at
Mbeya in Labour Dispute No. CMA/MBY/89/2016)
VERSUS
JUDGMENT
KARAYEMAHA, J
The applicant Lilian Sifael filed the instant application seeking for
(a), (b) and 91 (2) (b), (c), 91 (4) (a) and (b), and 94 (1), (b), (i) of the
section 14 of Act No. 17 of 2010, Rule 24 (1), 24 (2) (a), (b), (c), (d),
(e) and (f), 24 (3) (a), (b), (c), (d) (herein the Act) and Rule 28 (1) (b),
i
(c), (d) and (e) of the Labour Court Rules G.N. No. 106 of 2007 (herein
the Rules).
sworn by Lilian Sifael, the applicant and on the other hand, the
back on 24th October, 2015 the respondent Manager through the Board
the second winner. The post was therefore offered to the first winner.
accepted the offer vide a letter dated 29th February, 2016 and stated
that she would start the job on 9th March, 2016. She obliged to her
promise and reported at work on that day only to be told to wait. After a
Coca Cola Kwanza Limited - Mbeya (herein CCK) the applicant's former
employer. The revocation of the offer did not bed well with the
applicant. She decided to refer the matter to CMA - Mbeya blaming the
respondent for breaching the contract between them. The trial Arbitrator
was not convinced by her claim and explanations, hence decided against
between her and the applicant. As such, that concrete base she was of
Dissatisfied with the CMA award, the applicant has filed the
current application seeking for this Court to set aside and quash the
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2. That the Arbitrator erred in law and fact in holding that there
failed to realize that the offer and acceptance was the valid
contract.
applicant at CMA.
respondent
applicant.
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3. Whether it was proper for the Arbitrator to award general
before him.
respondent.
employment.
summons.
the one hand the applicant was represented by Mr. Isaya Z. Mwanri,
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Let me start with the 1st issue which is whether there was a
Mwanri submitted to the effect that when the respondent made an offer
general reference to the labour law, law of the contract and case laws,
Mr. Mwanri stated that the applicant received an offer from the
(2) of the Act, sections 2 (1) (a) (b) and (h) and section 5 (1) of the Law
Mwalwisi who held the view that the offer and acceptance did not
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finalize the employment contract. Referring to exhibit N2 the learned
counsel stated that the applicant was required to accept the offer of
employment and indicate show the date to start the job in order to
the applicant in the acceptance letter. To her, the formalities which were
since those formalities were not fulfilled, there was no valid contract
concluded.
and acceptance are not the only elements of a valid contract as argued
Tanzania Limited and Hotel Tra ven tine Limited and two others
relationship and consideration. She held the view that if all these
elements exist the contract is valid and enforceable. She said that in the
current matter these elements did not exist because the meditated
relationship had not been done. To support her views, she called to her
aid and placed reliance on the decision of the High Court in the case of
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WARNERCCOM (T) Ltd v TATA Africa Holding (T) Ltd, Civil Case
the parties. She remarked that there was no any written employment
contract between parties. In respect of exhibit N2, she said that the
same did not provide whether the employment contract would be for
that the same should be looked at from the angle of the words used by
parties in their offer and acceptance. If the words used in the contract
Marrying that position to the current case, Mr. Mwanri submitted that
parties agreed and used terms which clearly meant that the respondent
employed the applicant and the applicant as well agreed to work for the
me that the applicant on one hand, harbours the feelings that, it was
wrong for CMA to declare that she had no contract of employment while
she was offered a job which she accepted. These events made her get
contract. On the other side of the coin, the respondent concedes that
there was an offer and acceptance but parties had not finalized the
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employment contract. The respondent was of the conviction that the
so, I found out that exhibit Nl concerns the minutes of 13/02/2016. This
document exhibits that the applicant was shortlisted and interviewed for
the post of Financial Manager. The interview results showed that she
took the second position. This document states further that, I quote:
The meeting resolution was that the applicant was highly qualified
to the financial post but was the second and therefore be employed as a
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you a different post of Senior Revenue Officer in the
quote:
as follows, I quote:
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you that, following the receipt of negative recommendations
am in agreement with Mr. Mwanri that the revocation decision was not a
the offer on 29/02/2016 and the offer was revoked on 14/04/2016 more
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them. However, they part ways on whether or not there was a valid
contract of employment.
our jurisprudence that generally, the Law of Contract Act Cap. 345 R.E.
Tanzania. But for specific types of contracts there are specific laws
governing the same, for instance, the Employment and Labour Relations
Act Cap. 366 R.E. 2019 (the Act) specifically provides for employment
and acceptance are not covered by the Act. It is, therefore, correct to
state that the employment contracts are governed by both the Law of
parties? On the basis of the testimonies of PW1, DW1 and DW2 along
matters:
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The letter went further to mention the salary scale the applicant was to
29/02/2016.
to confirm the date of starting the job so that the respondent would
following terms:
the job."
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the applicant respectively, the trial Arbitrator faulted the respondent for
revoking the offer which had been accepted. She, however, concluded
exhibit Bl.
respondent did comply with the full knowledge of the respondent. The
affirmative.
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Both counsel had lengthy arguments on the issue of employment
finalized included signing of the contract. She argued adding that since
concluded. On his part, Mr. Mwanri observed that those formalities were
very clear and needs neither deep nor wide interpretation. It states at
paragraph 5:
formalities."
applicant had confirmed the date to commence working for her, the
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employment formalities on 29/02/2016 on 09/03/2016 when she
reported at work.
writing. (See section 14 (2) of the Act). The Act does not provide for a
hard rule in which the contract of employment should be. If that is the
case, the respondent signing on the written offer and applicant signing
Now agreeing that one cannot talk about the employment contract
exist.
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Section 10 defines Agreements to be Contracts. The same states:
registration of documents."
Further to that, section 11 (1) and (2) of the Act (Supra), provides
for the persons competent to contract and the remedy to the Agreement
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(2) A person who is usually o f unsound mind, but
is o f sound mind.
unsound mind.
Ms. Mwalwisi argued forcibly that the offer and acceptance in this
matter did not finalize the employment contract. She submitted that the
view that if all these elements exist, the contract is valid and
enforceable. She said that in the current matter these elements did not
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absolutely agree with him. The offer and acceptance, first of all, met the
conditions provided for under section 14 (2) of the Act. They also
complied with sections 10, 12 and 13 of the Law of Contract Act. Further
offering and accepting, the words used were calculated to create and
view, is a consideration.
To cum it all, Ms. Mwalwisi got it wrong and the learned Trial
accepted and the applicant had reported at work place was indeed a
violation of the law. However, the respondent was not curtailed from
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breaking the contract. While authorized by law to do so, she had to
addition the law did not allow the Managing Director to revoke the offer.
It was the Board of Directors with that mandate. He, therefore, acted
ultra vires. What does this mean, the revocation was voidab initio.
the issue, I am of the settled view that the applicant and the respondent
Let me now turn to issue Number three because issue number two
On this area, this court has already decided that the respondent
The position is that the Managing Director manages day to day affairs of
the Water Authority but that is subject to the directions of the Board.
This means that before executing any action or decision, must first take
directives of the Board of Directors. That is the law and no magic can
was/is the Board of Directors which has powers to employ and terminate
Arbitrator had no other option than passing orders that the applicant
the award which is weak in relation to the findings that there was no
191, he said that the trial Arbitrator had to award damages for breach of
contract of employment.
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Mr. Mwanri is contented with the awarded amount, but faults the
trial Arbitrator's decision not to grant relief for the breached contract of
whether she was right or wrong, it could not be easy for the trial
Arbitrator to grant the reliefs because she had concluded that there was
(1) of the Law of Contract Mr. Mwanri remarked that any person who
been terminated, it would be fair and just for this Court to order
Ayoub Jaku [1993] TLR 280 where by the court of Appeal observed
that the court can order specific performance when the other party
submitted that the respondent was not entitled to any reliefs because
there was no any legal relationship between the parties. She said that
reliefs are granted in terms of section 40 (1) (a) of the Act where it is
established that there was unfair termination. Moreover, she was very
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quick to observe that section 35 of the Act excludes employees with less
breach of contract and the contract was not revoked. To him what was
The question is whether that was one of the prayers fronted at CMA.
Contract will be applied in this matter. Applying it, it has been concluded
which obviously sinned against the labour laws and the clear provisions
of section 17 (4) of the Water Supply and Sanitation Act No. 5 of 2019
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The vexing question at this juncture is what reliefs should be
the Act are not applicable. The applicant forecasted the outcome of
These were claims which formed the base of the trial in CMA and
baking on them the Arbitrator came out with the impugned award.
new prayers, to wit, first, declaration that the respondent revoked the
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to respond to them and give evidence or encounter them during the
Bringing home the point, this court has already declared that the
employer employee relationship existed. It was also illegal for the Water
Board of Directors.
Trial Arbitrator's views that there is no wrong without remedy (ubijus ibi
Regarding the prayer of general damages, this was not one of the
prayers tabled before CMA. But in her findings, the Arbitrator considered
the laments of the applicant in her evidence that she was affected
given first priority in the interview, time wasted going to her working
place and later told to wait. All these made her to award Tshs.
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20,000,000/= as general damages. Apparently, the respondent has no
clear that she would start to work on Wednesday 9th March, 2016.
According to her evidence, she went to work but was told to wait. Later
she was served with a revocation letter. Well, we may invoke the
300 R.E. 2017] that the applicant needed to prove that fact. However,
the question that comes to the fore is whether or not, the applicant was
she gave on oath and disregard any contention that might be deceiving.
Since she had legitimate expectation and remained more than a month
2016 Tshs. 360,000/=. Airtime allowance was to be paid when she was
these two.
In view of the above, this Court settles for the following orders:
employment.
It is so ordered.
J. M. Karayemaha
JUDGE
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