DC808

PAPUA NEW GUINEA
[DISTRICT COURT OF JUSTICE
SITTING IN ITS CIVIL JURISDICTION]

DCCi 05 of 2007

BETWEEN

KONTE AKO
Complainant

AND

FORO OMA
Defendant

Kainantu: I Kurei

2007: June 06, 08

Cases Cited

Nil

References

Nil

Counsel

For the Complainant – In Person 
For the Defendant – In Person

06 June 2007

EX-TEMPORE JUDGMENT

Facts

Defendant approached the Complainant on two (2) occasions to buy a Motor Vehicle Toyota Hilux (2L) which stood stationery for sometime at Complainant’s residence.

On the third approach Complainant agreed to sell it.

The agreement reached were all oral no written arrangements.

The understanding was for K 5, 000.00.

Up front payment was K 2, 000.00.

Sometime later at installments of K 500.00, K 100.00, and K 90.00 were paid.

Total amount paid is K 2, 690.00.

Amount remaining is K 2, 310.00.

Law

Law of Contract

1.	Offer and Acceptance

2.	Consideration

3.	Intention to create legal relationship

4.	Capacity, etc

Issue

Whether or not an enforceable contract in law, subsists?

What parties have done, is it enforceable in law?

Evidence

Defendant did make several approaches to the Complainant.

Complainant accepted the offer to sell the motor vehicle to the Defendant.

Defendant and Complainant agreed up front payment be made and later. 

Defendant to pay on installment till the agreed amount is fully settled.

The vehicle was not running.

The Defendant and Complainant reached understanding that vehicle was worked on and it was moving but not road worthy and Defendant took it away.

It is interesting Complainant bought the vehicle for K 5, 000.00.

It is noted vehicle was sold not roadworthy and not in a sound mechanical condition.

Consideration

1.	The depreciation of the value of the vehicle.

2.	Initial agreement between both parties for K 5, 000.00 part payment of K 2, 690.00.

3.	Both parties are adults in their right frame of mind.

4.	No proper valuation of the vehicle made.

5.	From evidence it is an old vehicle.

6.	Indeed parties knew exactly what they were doing.

7.	After the initial agreement, there was no other arrangement made to rescind the earlier understanding.

Finding

The original/initial agreement is the understanding of both matured and sane minds of the both parties.

Part payment was made vehicle taken out not in the best mechanical condition but it was mobile.

After lengthy period defendant failed to keep his part of the bargain.

As such his actions amount to breach of oral contract.

Assessment

1.	Agreement of the price - 	K 5, 000.00	
2.	Upfront payment -	K 2, 000.00	
	K 3, 000.00	
3.	Installments paid	K 690.00	
	K 2, 310.00	
4.	Depreciation of Value	K 1, 500.00	
	K 1, 110.00	
5.	Final amount awarded	K 1, 110.00	
6.	Costs	K 200.00	
7.	Total amount ordered 	K 1, 310.00	

For the Complainant – In Person
For the Defendant – In Person