Ndarry Construction versus Ilala Municipal Council

Ndarry Construction versus Ilala Municipal Council; Commercial Case No 31 of 2015: High Court of Tanzania (Commercial Division) at Dar es Salaam (Unreported).

• Contract

• Frustration of contract – owner of project failed to continue with project because DAWASCO and TANESCO (water and electricity authorities) ordered that construction should stop as the area was restricted for water and electricity infrastructure- whether amounted to frustration of contract.
• Frustration of contract- what are the consequences of frustration of contract?

Held:-

(i) When unforeseeable events occur at the site of construction and specifically prohibition by water and electricity authorities the contract is said to have been frustrated.

(ii) When frustration in the legal sense occurs, it does not merely provide one party with a defence in an action brought by the other.  It kills the contract itself and discharges both parties automatically.  The ultimate aim is to render the contract void.