The parties entered into a written agreement for the sale of immovable property for $700,000.00. The purchase was conditional upon the purchaser (respondent) obtaining a 100% bond from Stanbic Bank by 9 May 2001, with the purchaser undertaking to apply for the loan by 9 April 2001. The respondent successfully obtained the loan on 19 April 2001, nineteen days before the deadline. On 25 April 2001, she paid fees to the conveyancers, Messrs Kantor & Immerman, for registration of the bond. Despite demand, the appellant (seller) refused to sign the transfer papers without just cause. The respondent applied to the High Court to compel compliance with the agreement and succeeded. The appellant appealed, arguing the respondent failed to notify her of obtaining the loan and that the agreement should be cancelled.
The appeal was dismissed with costs. The order of the High Court compelling the appellant to do all things necessary to enable transfer of the property to the respondent was upheld.
Where parties enter into a written agreement of sale with clear and specific provisions to be followed in the event of breach, and the agreement constitutes the entire contract between them, no party can introduce additional or different conditions from those agreed, especially where such changes would prejudice the other party. When conveyancers are appointed under an agreement to act for the seller, communications to those conveyancers can be treated as communication to the seller. A valid cancellation of a sale agreement requires compliance with the cancellation provisions stipulated in the agreement itself, including any requirement for notice. Where there is no breach by the purchaser and no valid cancellation by the seller, the agreement remains valid and enforceable.
The Court distinguished the case from Marisa v Madondo 1992 (1) ZLR 276 (S), observing that in that case the conveyancers were acting for the purchaser/respondent in drawing up the deed of transfer, whereas in the present case the conveyancers were acting as agents for the seller. The Court also noted that in commercial transactions involving the sale of property whose value fluctuates on the market, there is a reciprocal duty to ensure transfer is effected within a reasonable time, though this was not determinative of the appeal.
This case is significant in Zimbabwean contract law as it establishes important principles regarding: (1) the binding nature of written agreements and the inability of parties to unilaterally introduce additional conditions beyond those agreed; (2) the law of agency in property transactions, particularly regarding the role and authority of conveyancers appointed under sale agreements; (3) the requirement for strict compliance with contractual cancellation provisions; and (4) the distinction between situations where conveyancers act for purchasers versus sellers in property transactions. The case reinforces the principle of pacta sunt servanda and the courts' willingness to enforce specific performance of property sale agreements where the purchaser has complied with all conditions.