Extra zero in contract price

I entered into a contract where the contract price was supposed to be TZS 11M but we entered the contract price with an additional zero in the local purchase order i.e. TZS 110M. We paid the supplier the TZS 11M, but they are now claiming in Court that we have underpaid him and is demanding the difference. I am informed that the Courts in Tanzania always favour such persons. What should we do?
2 April 2012

First and foremost, if you had intentionally left out the zero in the contract, and the goods are indeed worth TZS 110M, then the supplier might be successful and you should pay. However, if you purchased goods that very obviously have a market value of  TZS 11M and you can prove that they are worth this amount, and that it was a genuine mistake we believe that you will be successful in Court.

We suggest you check the contract again, and see if the amount has been written in words. Normally, in interpretation, the words prevail. That is, if the amount is written as

TZS 100M but the words read TZS 11M, then the Courts will likely hold the amount as  TZS 11M and not TZS 110M.
The above becomes trickier if the contract is for the supply of services, which can be very subjective to value. If that is the case, then you should trace back all your negotiations regarding the contract, and present them with evidence to show that the service was agreed at a value of TZS 11M, and not
TZS 110M.

Courts do not normally like to interfere in what parties agree on, unless the agreement is illegal. If your documentation is in order, then we do not see why the Courts will not rule in your favour. Your attorneys can guide you further.