A contract can be defined as an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. The existence of a contract requires an offer; an acceptance of that offer which results in a meeting of the minds; a promise to perform; a valuable consideration (which can be a promise or payment in some form); a time or event when performance must be made (meet commitments); terms and conditions for performance, including fulfilling promises and performance. The general principles of a contract include the transfer of contractual rights and obligations which uphold the conclusion of contracts, its performance and its objects must be lawful with particular emphasis on agreements in restraint of trade.
The Zimbabwean constitution Section 49: 3 states that “No person may be imprisoned merely on the ground of inability to fulfil a contractual obligation”. It is well known that a contract is terminated after being performed. Performance means that each party must perform its own obligations as envisaged by the contract. Performance should be made by the party upon whom the obligation is imposed and that performance must be rendered to the person recognised by the law as being competent to receive the performance.
(Hanornag SA (Pvt) Ltd v Otto 1940 CPD 437.).
In the event a contract is not performed the court must firstly establish the parties’ intention, taking into account the surrounding circumstances and everything which gives a due to that mutual intention. The court must seek to find, what the parties would have wished to had their minds had been directed, whether the performance was to be specific and equivalent. Secondly should there be no clues as to the parties to mutual intention, the presumption
References: FINAL DRAFT OF THE ZIMBAWEAN CONSTITUTION http://legal-dictionary.thefreedictionary.com/contract