ENFOCEABILITY OF UNWRITTEN CONTRACT IN TANZANIA

Unwritten (oral) contracts are generally enforceable in Tanzania under the Law of Contract Act, Cap 345 R.E. 2023, provided they satisfy essential elements: offer, acceptance, lawful consideration, capacity, and intention to create legal relations. unwritten contracts are harder to prove in court than written ones, Section 10 of the Law of Contract Act does not explicitly require contracts to be in writing. Oral agreements are binding and often formed through Verbal agreements.

Un written contract in Tanzania is enforceable just like other written contracts.in the case of Tanzania International Container Terminal Service Limited vs Petrolube (T) Limited civil Appeal No.54 of 2022.

In this case the court cited the case of Prisimo Universal Italiana S.R.I vs Temcotank (T) Limited [2008] T.L.R.403, and Singijo Rice Millers C.o. Ltd v. S.M Holdings Ltd [2006] T.L.R89, at page 10 paragraph 2 and page11 and states as follows;

β€˜β€™In this case this implied contract stated above was altered breached, by the appellant. Therefore, it will be heartless and quite un just and illegal to hold, that because there was no written agreement between the appellant and respondent then the respondent has no legal redress under the law. If we were to hold as such, we would not be effective and even responsible administrators of justice. To us on all occasion, justice must rule supreme and must be given way even in the face of the law itself.’’

Having saying this, the appeal was partly allowed on other grounds and not the ground of no contract between the parties simply because it was not written. And upon considering the nature and circumstances of the matter the court make no order as to cost.

Therefore unwritten contract is well recognized by the law and its enforceability is equal to written contract upon prove of its validity in the law. In this case it was discussed that the fact that there was no written agreement, does not led to injustice since the appellant denied on existence of contract as ground of appeal on the reason that it was not a written contract.

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