Harare – The High Court has dismissed a claim by Clement Kangamwiro Chimuti seeking to cancel a 20-year Build-Operate-Transfer lease agreement with Meizon Petroleum (Pvt) Ltd, ruling there was no evidence of a common mistake or contractual breach as alleged.
Justice Manzunzu, sitting in the Commercial Division of the Harare High Court, ruled in favor of Meizon Petroleum after Chimuti sought to evict the company from Stand 2030 of Stand 61, Machipisa Complex in Zvishavane, citing breach of contract and a mistaken understanding of the agreement signed in January 2020.
Under the agreement, Chimuti provided land for the development of a service station, which Meizon built and began operating. The contract allowed the petroleum firm to recoup its estimated US$120,000 investment over ten years rent-free, after which ownership of the infrastructure would revert to Chimuti, and rent for the remaining 10 years would be negotiated.
However, in 2022 and 2023, Chimuti wrote letters attempting to cancel the deal, alleging Meizon had breached the terms and claiming he signed the contract under a mistaken understanding. He also demanded damages amounting to US$19,450.
Meizon defended the claim, arguing that Chimuti was fully aware of the terms and only attempted to alter them after two years by making unreasonable demands, including trying to run the fuel station himself.
Justice Manzunzu agreed with Meizon, stating that Chimuti failed to prove a common mistake or any material breach. “What comes out clearly from the evidence and conduct of the plaintiff is a revision of what he had agreed to,” the judge ruled.
The court found that Chimuti and his daughter, both experienced in business, knowingly entered into the agreement and were not under pressure or misled. The judge emphasized that “a party to an agreement who raises mistake to escape liability must prove not only that the mistake is material but also that it is reasonable.”
Chimuti’s case was dismissed with costs.
