[2012] KEHC 4229 (KLR)

[2012] KEHC 4229 (KLR)

The court found that while there was an offer and acceptance for the sale of the X-ray machine, there was no binding agreement for the defendant to finance the balance of the purchase price. The cheques remitted by the plaintiff were not banked and were eventually returned, meaning no consideration passed and thus...

Source-derived case information.

Citation
[2012] KEHC 4229 (KLR)
Parties
Plaintiff: Corner House X-Ray & Diagnostic Centre; Defendant: National Industrial Credit Bank Limited
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Case Number
Civil Case 859 of 2002
Procedural Posture
Civil Case / Judgment
Outcome
suit dismissed with costs to the defendant
Judges
GV Odunga
Legal Topics
Breach of Contract, Sale of Goods, Specific Performance, Damages Assessment, Contractual Consideration
Source Language
en
Commercial and Corporate Civil Procedure Breach of Contract Sale of Goods Specific Performance Damages Assessment Contractual Consideration

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 4 Authorities cited 6 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Corner House X-Ray & Diagnostic Centre

Plaintiff

National Industrial Credit Bank Limited

Defendant

Procedural Posture

Civil Case / Judgment

  1. 1 Did the defendant agree to finance the plaintiff in the sum of Kshs. 300,000/- to purchase the subject X-ray machine?
  2. 2 Upon what terms did the defendant accept from the plaintiff the cheques cited in paragraph 5 of the plaint?
  3. 3 Was the defendant bound to grant the loan to the plaintiff upon receipt of Loan Application Form from the Plaintiff?

Ratio Decidendi

The court found that while there was an offer and acceptance for the sale of the X-ray machine, there was no binding agreement for the defendant to finance the balance of the purchase price. The cheques remitted by the plaintiff were not banked and were eventually returned, meaning no consideration passed and thus no enforceable contract arose. The defendant's request for a fresh bid and imposition of new conditions after initial acceptance amounted to a repudiation, but since the contract was not fully constituted due to lack of consideration, there was no breach. The plaintiff failed to prove any actual loss or entitlement to damages, as the evidence did not establish that the plaintiff...

Court Disposition

suit dismissed with costs to the defendant

Orders

  • The plaintiff's suit is dismissed.
  • The plaintiff shall pay the costs of the suit to the defendant.