Lobo v East African Agency and Another
Lobo v East African Agency and Another (Civil Case No. 113 of 1951) [1952] EACA 276 (1 January 1952)
The court found that the memoranda required by section 11 of the Money-lenders Ordinance were signed after the promissory notes were endorsed and handed over as security, which contravenes section 11 (1). Furthermore, the memoranda failed to include the agreed term that interest was to be paid in advance, a material term, thereby breaching section 11 (2). These non-compliances rendered both the contracts and the promissory notes unenforceable against the defendants. The authority cited by the plaintiff, Simmons v. Russell Financiers, Ltd., was distinguished on the facts, as the omitted term i…
Source excerpt
- Money Lending Contracts
- Memorandum Requirements
- Unenforceability Of Contracts
- Promissory Notes Liability