FB Attorneys, 30th June 2010 @ 12:00, Total Comments: 0, Hits: 4228
How do I prove child mine?
I was involved with a certain woman for several years before we parted last year. Few months ago she contacted me and informed me that she gave birth to a child and claimed I was the biological father. I had a look at the child and there is no ways in the world that he resembles me. She is insisting that I pay maintenance for the child and has since sent me a notice from a law firm to provide funds for the upkeep of the child and mother. In principle had the child been mine, I would not have written this question to you. Please advice.
MG, Dar
It is good you wrote to us as we do not entirely agree with what you have said. To begin with, the most reliable test of whether a child is yours or not, is not by merely looking at the child and seeing if he resembles you. That was an unreliable test they used in the Victorian days and has no scientific relevance in today’s era.
The most accurate way is to conduct a DNA test and Tanzania has now the facility and a law in place to support such tests. As per the DNA act, there are only a number of people and institutions who can initiate DNA testing which include the police for investigation purposes, the Court, a certified medical doctor or an advocate if there is no conflict between the parties.
In your case if the said lady does not contest a DNA test then you can request your doctor or your advocate to write to the government chemist and request the test to be conducted. In the event she refuses, you may make an application in Court and based on the grounds you state in your application, the Court may or may not grant orders as to the said testing. And for now don’t be blinded by the resemblance of the child- it is not conclusive.
Contractor, sub contractor relation
I have been awarded a multi billion contract for construction of a project in Dodoma. I will have to sub contract a large portion of the job but do not have the cashflow to finance sub contracting and will be fully reliant on cash flow from the client to support the sub contractor. What are the important things I should take note of?
GG, Dodoma
The contract between you and your sub contractor will have to contain similar terms as the contract between you and your client. The completion time, scope of work, quality of material etc must match.
One clause that you must include in your contract is the ‘pay if paid clause’. This is a provision that makes the main contractors payment to the sub contractor for work performed contingent on whether the client pays the main contractor for the work done. In such a clause the sub contractor must assume the risk of nonpayment if the client fails to pay the main contractor.
If your construction company is a small player we are unsure if the sub contractors’, who are probably much bigger in size, will agree to such a condition. Alternatively the sub contractors may ask for a bank guarantee which will be costly and difficult to obtain without any asset cover.
Life insurance claim rejected
For the past seven years, my husband had a life insurance policy with a private insurer. He died in September last year when he jumped out of a moving car. The insurance company initially paid for the funeral and gave all indications that they would pay under the policy within 90 days. I have been informed that they will not pay. What should I do? Can I sue the insurance company?
BB, Dar
You have not given the reasons for repudiation of the claim but there is something we have spotted in your question. Why did your husband jump out of a moving car? What caused such action? If it was suicide, the claim will not be paid.
There is a very clear suicide clause in all life insurance policies that exclude suicide as a covered risk or limits the insurer’s liability, in the event of a suicide, to the total premiums paid.
The fact that the insurer paid for the funeral expenses cannot be held against the insurer as an admission of a claim. We suggest you meet your attorney who can guide you step by step before you blindly institute a law suit.
Personal guarantee in bank loan
I am a director in a family run business but have no shareholding. My remuneration is limited to yearly director’s fees. We have been heavily borrowing from some very large banks in Tanzania. Over the years our turnover has been declining and we are losing market share resulting in heavy liquidity problems for the company. In most of the bank documentation, I have been signing personal guarantees as part of the loan documentation. What is the effect of such guarantees in case the bank makes any moves? Ours is a limited liability company. Does that make a difference?
BV, Dar
Simply put, a personal guarantee is a guarantee that you, as the guarantor, will assume personal responsibility for repayment of the loan, should the company not honour its obligations.
Our experience in the market is that the personal guarantee agreements are very widely drafted to secure the bank. When you signed the personal guarantee, which is a one or two page ‘innocent looking’ document, you gave up your personal protection against liability, which is provided for by registering a limited liability company.
In principle if the company defaults, and the banks move in, should the banks not be able to realize what they lent to the company from the assets pledged by the company to the bank, the bank may then, subject to the personal guarantee agreement, come after your personal assets.
You will need to plan out how you will manage your personal affairs in case that happens. You need to see a good company law specialist.
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