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1 Jan 1952

Commercial And Corporate [1952] EACA 276

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)

Court: East African Court of Appeal
Case number: Civil Case No. 113 of 1951
Judge: Windham J

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

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1 Jan 1938

Commercial And Corporate [1938] EACA 183

Amin v Joanes and Another

Amin v Joanes and Another (Civil Case No. 159 of 1938) [1938] EACA 183 (1 January 1938)

Court: East African Court of Appeal
Case number: Civil Case No. 159 of 1938
Judge: Thacker J

The court held that the contract was unenforceable because it failed to state the date of the loan and did not express the interest rate as a rate per centum per annum, both being material requirements under section 10 of the Moneylenders Ordinance, 1932. The omission of the date was a material defect, and the contract could not be supplemented by external documents such as the acknowledgment letter. The acknowledgment letter of 15th September, 1937, while confirming the debt, only contained a conditional undertaking to repay ('we will try our best to liquidate the loan'), which did not satis…