Fungai Chaeruka v Minister of Lands & Rural Resettlement and Heather Guild

The applicant was offered Lot 5 of Lot 1 of Mazonwe, Mutare (Mapetu Farm), measuring 498 hectares, by the first respondent (Minister of Lands) via offer letter dated 20 March 2007. The farm was previously held by a company in which the second respondent was a director. The offer letter was withdrawn following a directive by the late Vice President Joseph Msika, who was then chairperson of the National Lands Committee. It was observed that the applicant was badly under-utilising the land, practicing horticulture on less than one hectare and leaving the rest of the 498-hectare farm idle. The second respondent was subsequently issued an offer letter dated 8 November 2010 for the same farm. The applicant was notified of the withdrawal intention in November 2007 when the Vice President's letter was read out to him at a meeting at the Governor's office, though the formal withdrawal letter was only delivered in November 2010. The applicant first sought political intervention from the Zanu PF chairman before approaching the court for relief.

• Whether an accepted offer letter under the Land Reform Programme creates a binding contract that cannot be unilaterally terminated
• Whether clause 7 of the offer letter gives the Minister unfettered power to withdraw the offer letter
• Whether the withdrawal of the offer letter violated the audi alteram partem rule and principles of administrative justice
• Whether the Administrative Justice Act applies to contractual relationships arising from land offer letters
• Whether adequate notice was given to the applicant before withdrawal of the offer letter
• Whether under-utilisation of allocated land constitutes a breach justifying withdrawal

The application was dismissed with costs on a legal practitioner and client scale (punitive costs).

When an offer letter under the Land Reform Programme is accepted, it creates a binding contract between the State and the beneficiary. The parties are bound by the terms of that contract, including clauses giving the Minister power to withdraw the offer. Where the contract gives the Minister unfettered authority to withdraw the offer letter if deemed necessary or in case of breach, such withdrawal is lawful. Administrative law principles, including the audi alteram partem rule and the Administrative Justice Act, do not apply to relationships governed by binding contracts - when the State concludes a contract, it is bound by contractual terms, not by administrative law rules which apply when exercising state power over subjects. Under-utilisation of allocated land in breach of development conditions justifies withdrawal of a land offer letter. A party cannot enforce a contract while simultaneously seeking to avoid its terms by importing external legal principles.

The court observed that government land reform policy is not recreational or designed to accord beneficiaries pastime - it is meant to benefit those willing and able to utilise land. One cannot hold large tracts of unused land simply to "baby sit an inflated ego". The court emphasized that Zimbabwe prides itself on strict adherence to the rule of law, and citizens who side-step due process in favour of extra-legal political solutions, bringing the administration of justice into disrepute, will be penalized with punitive costs. The court noted that government operates through various complementary offices and procedures, so notice need not come directly from the Minister personally nor be in writing - substance matters over form. The court expressed the view that worrying about whether notice was in writing rather than oral focuses on form rather than substance.

This case is significant in Zimbabwean land reform jurisprudence as it clarifies the legal nature of land offer letters and the relationship between contract law and administrative law in this context. It establishes that beneficiaries of land reform cannot hold onto land they are not productively using, and that the contractual terms of offer letters (particularly withdrawal clauses) will be enforced. The case also reinforces the principle that citizens must pursue legal remedies through the courts rather than seeking political solutions, and departs from earlier precedent (Masunda) that had applied administrative law principles to contractual land allocations. It emphasizes that under-utilisation of land allocated under land reform constitutes a material breach justifying withdrawal of the offer.