Contractual Penalties Act
- Commenced on 23 October 1992
- [This is the version of this document at 31 December 2016 and includes any amendments published up to 31 December 2017.]
- [Note: This version of the Act was revised and consolidated by the Law Development Commission of Zimbabwe]
Part I – Preliminary
1. Short titleThis Act may be cited as the Contractual Penalties Act [Chapter 8:04].
2. InterpretationIn this Act—“creditor” means a person who is entitled or may become entitled to any money, right, benefit or thing under a penalty stipulation;“debtor” means a person who is or may become liable to pay any money, to do or perform anything or to forfeit any money, right, benefit or thing under a penalty stipulation;“instalment sale of land” means a contract for the sale of land whereby payment is required to be made—(a)in three or more instalments; or(b)by way of a deposit and two or more instalments;and ownership of the land is not transferred until payment is completed;“land” includes—(a)any improvements on land; and(b)an undivided share in any land which is coupled with an exclusive right of occupation such as is referred to in section 27 of the Deeds Registries Act [Chapter 20:05];“Minister” means the Minister of Justice, Legal and Parliamentary Affairs or any other Minister to whom the President may, from time to time, assign the administration of this Act;“penalty” means—(a)any money which a person is liable to pay; or(b)anything which a person is liable to do or perform; or(c)any money, right, benefit or thing which a person is liable to forfeit;under a penalty stipulation;“penalty stipulation” means a contract or provision in a contract under which a person is liable—(a)to pay any money; or(b)to do or perform anything; or(c)to forfeit any money, right, benefit or thing; as a result or in respect of—(i)an act or omission in conflict with a contractual obligation; or(ii)the withdrawal of any person from a contract;whether the liability is expressed to be by way of penalty, liquidated damages or otherwise.
3. Application of Act
Part II – Penalty stipulations
4. Penalty stipulations enforceable
5. Restriction on entitlement to damagesA creditor shall not be entitled, under a penalty stipulation, to both the penalty and damages or, except where the contract expressly so provides, to damages in lieu of the penalty.
6. Restriction on entitlement to penalty for defects or delayA person who accepts or is obliged to accept defective or delayed performance under a contract shall not be entitled to a penalty in respect of that defect or delay, unless the penalty was expressly provided for in respect of that defect or delay.
Part III – Instalment sales of land
7. Instalment sales of land to be in writingEvery instalment sale of land shall be reduced to writing:Provided that, where any such contract or any term or condition thereof has not been reduced to writing, the onus of proving the existence of that contract, term or condition, as the case may be, shall rest on the person alleging its existence.
8. Restriction of sellers’ rights
9. Court may grant relief
10. This Part not to derogate from Part IIThis Part shall not limit the application of Part II to any instalment sale of land.
Part IV – General
11. Waiver of rights under Act invalidNo waiver of any right or benefit conferred by this Act shall be of any force or effect.
History of this document
23 October 1992