[2020] KEHC 5642 (KLR)

[2020] KEHC 5642 (KLR)

The court found that a valid contract existed between the parties, as evidenced by the signed agreement and the Defendant's actions, including attempted termination. The Defendant breached the contract by failing to issue the required one-month written notice before termination, as stipulated in the contract....

Source-derived case information.

Citation
[2020] KEHC 5642 (KLR)
Parties
Plaintiff: Micro-City Computers Limited; Defendant: National Social Security Fund Board of Trustees
Court
High Court
Court Station
High Court at Mombasa
Jurisdiction
Kenya
Case Number
Civil Suit 41 of 2017
Procedural Posture
Civil Suit / Judgment
Outcome
judgment for the plaintiff in part
Judges
CA Otieno
Legal Topics
Breach of Contract, Public Procurement, Damages Assessment, Contract Formation, Termination of Contract
Source Language
en
Commercial and Corporate Civil Procedure Breach of Contract Public Procurement Damages Assessment Contract Formation Termination of Contract

Source-derived case record

Summary, issues, holding and outcome

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Parties

Micro-City Computers Limited

Plaintiff

National Social Security Fund Board of Trustees

Defendant

Procedural Posture

Civil Suit / Judgment

  1. 1 Whether the parties entered into a binding contract.
  2. 2 Whether there was a breach of contract by the Defendant.
  3. 3 Whether the Plaintiff is entitled to the reliefs sought, including damages.

Ratio Decidendi

The court found that a valid contract existed between the parties, as evidenced by the signed agreement and the Defendant's actions, including attempted termination. The Defendant breached the contract by failing to issue the required one-month written notice before termination, as stipulated in the contract. Although the contract exceeded the Defendant's budgetary allocation and was thus illegal under procurement law, the Plaintiff was not implicated in the illegality and was unaware of the budget constraints. The court held that the Plaintiff, as an innocent party, was entitled to general damages for breach of contract but not to special or exemplary damages due to lack of strict proof....

Court Disposition

judgment for the plaintiff in part

Orders

  • Judgment entered for the Plaintiff against the Defendant in the sum of Kshs. 16,056,378.
  • Interest at court rates from the date of suit until payment in full.