The Sunday News
Thulani Ndlovu Business News Correspondent
A BULAWAYO businessman is suing National Railways of Zimbabwe (NRZ) for breach of contract after the parastatal allegedly sold the same motor vehicle to two different bidders. Mr Thabani Khumalo, through court papers lodged at the Bulawayo High Court last week, alleges that on 24 May 2014 during an auction conducted by National Auctioneers he was declared to be the highest bidder of property Lot 74 that is Nissan UG780 registration number 471-614Y.
However, instead of NRZ selling the vehicle to Mr Khumalo according to terms and conditions of the auction, they breached the contract that was signed by the parties in the buyer’s commitment form.
“National Auctioneers as a real estate agent was mandated by NRZ to sell the property by auction. It was the terms of the parties agreement that upon the plaintiff being confirmed as the highest bidder, he shall deposit a sum of $2 500 and a balance of $1 150 thereafter,” read part of the summons.
Khumalo added that he was declared as the highest bidder but when he attempted to possess the vehicle, NRZ and National Auctioneers had sold the car to a third party for $2 875 which is less than his bid price of $3 650.
He adds: “NRZ and National Auctioneers then attempted to offer me Lot 32 containing a Nissan UG780 with registration number 470-983M.”
Khumalo said as a result of breach of contract, NRZ should pay him back $1 150.
He added that in spite of his demands, NRZ and National Auctioneers have failed, neglected or refused to pay him the amount.
“Plaintiff claims against NRZ an order for the payment of the sum of $1 150 being amount due to the plaintiff as the defendant has been unjustly enriched or alternatively damages to breach of contract.”
NRZ are yet to file a plea of defence.
