Industrial Finance Limited vs M. Careem – CA 895/95 F -2011

In the case between Industrial Finance Limited (Plaintiff) and M. Careem, A.C.N. Mohamed, and A.R.S. Hameed (Defendants), the court addressed the enforceability of an Agreement dated 13-5-1986 (“A”), focusing on whether liability to pay could arise despite the absence of an expressly stated interest rate in that document. It was held that a valid, enforceable contract existed, as the parties’ conduct and a related document (P3), which specified the interest rate, evidenced mutual agreement on essential terms. The principle was reaffirmed that contractual obligations must be assessed according to the intentions and conduct of the parties, not merely the written terms where conduct clarifies intent. Established precedents and the parties’ payment practices underpinned the decision, emphasizi