A Harare woman will pay US$40 000 to a local construction company after she was hit with a lawsuit for terminating a contract when work had already started.
Martha Murayi was sued by Homezone Company (Pvt) Limited for breaching their agreement.
Homezone had demanded US$200 000 in total, S$40 000 being for the preliminary work done and US$200 000 being consequential damages.
Murayi denied the allegations arguing that there was never a contract but the High Court ruled that she was hiding behind a finger.
Murayi was in turn ordered to pay 50 % of the costs for the company.
"It is clear from the evidence of the parties that they agreed on two things.
"The first is that the plaintiff will do a development permit for the defendant which permit can only be obtained upon successful paperwork by the plaintiff.
"The parties are in agreement that the paperwork was done and the local authority issued a permit.
"It is also not in dispute that when the defendant canceled the agreement, unknown to the defendant, the plaintiff had fully performed its obligations under this first phase.
"The defendant denies liability on the basis that there was no agreement. Having found that there was an agreement, the defendant has no basis to deny liability.
"The plaintiff's claim for specific performance be and is hereby dismissed. The plaintiff's claim for payment of the sum of US$200 000 for consequential damages be and is hereby dismissed.
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The judge said the claim for the paperwork was justified and ordered Murayi to pay US$40 000.
Homezone's claim was based on a contract between the parties.
The company was given a sole mandate instruction to carry out the design and performance of all contractual works in relation to the development and upgrade of the defendant's property in Avondale.
Having accepted the mandate, the plaintiff commenced work in October 2020.
The instruction included feasibility studies, preliminary works, project costing budget, permit applications, roadworks designs, sewer drainage designs and construction of buildings.
Homezone applied for and obtained a development permit as part of the preliminary work for the construction of 8 garden flats.
On 6 July 2022, the company received a letter from the defendant canceling the mandate in breach of their contract which resulted in the present matter being filed at the High Court.
