The dispute between the Appellant and the Respondent is centred on a contract relating to a boat. The Respondent hired a fishing boat to the Appellant but the Appellant neither paid the agreed fee nor returned the boat to the Respondent. The Appellant disputed the existence of a contract between the parties since it never authorised one, Omar Paul, to enter into the agreement on behalf of the company (the Appellant). Both the trial District Court of Mwanza and the High Court ruled in the Respondent’s favour. Dissatisfied, the Appellant Company preferred the second appeal to the Court of Appeal of Tanzania.