The plaintiff acquired an Audi 200 motor vehicle in 1990 and had taken it to the defendant for servicing and repairs on six occasions. In November 2001, he delivered the vehicle to the defendant's workshop for servicing and repairs to the injector, bonnet and radiator. The defendant's job card contained a disclaimer clause in small print stating the defendant was not liable for loss or damage to the vehicle or its contents. The plaintiff signed the job card but stated he did not see or read the disclaimer clause. While at the defendant's workshop, the vehicle caught fire damaging the bonnet and wiring. Subsequently, the gear-box collapsed and the engine seized up. When inspected in February 2006, the vehicle was in a dismantled state with the engine and gear-box in pieces and various parts damaged or missing. The plaintiff claimed repair and delivery of the vehicle or alternatively payment of $900 million as damages for replacement value.
Judgment was entered for the plaintiff with costs. The defendant was ordered to repair the plaintiff's Audi 200 Turbo motor vehicle at its own cost and expense and deliver it to the plaintiff in sound working condition. The defendant was ordered to commence repairs within 5 days and deliver the vehicle within 3 months thereafter. The defendant was ordered to pay the costs of suit.
1. A party who signs a contractual document is generally bound by its terms even if not read, unless misled as to their meaning. 2. Under the Consumer Contracts Act, an exemption clause that excludes liability to an extent not reasonably necessary to protect the supplier's interests and is contrary to commonly accepted standards of fair dealing renders a consumer contract unfair under section 5(1)(d) and (e). 3. An exemption clause that purports to exclude liability for negligence constitutes a prohibited scheduled provision under section 4(1)(c) and paragraph 2 of the Schedule to the Consumer Contracts Act. 4. Such unfair or prohibited clauses may be cancelled and declared void by the court under section 4(1) of the Act. 5. In a contract for motor vehicle repairs, there is an implied warranty to return the vehicle in a condition not worse than when delivered, as this is essential to the contract, necessary for business efficacy, and implied by trade usage and the parties' common intention. 6. Courts cannot recognize or give effect to illegal parallel exchange rates in assessing damages.
The Court observed that in a hyperinflationary environment, it may be necessary to assess damages as at the time of trial rather than at the time of breach to achieve justice between parties, as replacement values vary substantially over time. The Court also noted that if the defendant fails for any practical reason to comply with the decree for specific performance, the plaintiff will be at liberty to institute a new action to recover damages. The Court commented that it would be "astounding and quite absurd" for a vehicle owner to hand over a vehicle for repairs with the expectation of receiving it back in worse condition than before repairs.
This case is significant in Zimbabwean consumer protection law as it demonstrates the application and scope of the Consumer Contracts Act [Chapter 8:03] in invalidating unfair exemption clauses in consumer contracts. The judgment establishes that broadly worded disclaimer clauses in motor vehicle repair contracts that exempt all liability are contrary to fair dealing standards and can be struck down as unfair contract terms or prohibited scheduled provisions. It also affirms the willingness of courts to imply warranties essential to the nature of repair contracts, particularly the warranty to return property in no worse condition than received. The case illustrates judicial intervention to protect consumers from oppressive contractual terms in situations of unequal bargaining power.