[2020] KEHC 6751 (KLR)

[2020] KEHC 6751 (KLR)

The High Court found that while the respondent did not strictly comply with the payment timelines under the sale agreement, the appellant's acceptance of late payments and ongoing communications demonstrated a mutual variation of the contract terms. The appellant failed to disclose at the outset that the vehicle was...

Source-derived case information.

Citation
[2020] KEHC 6751 (KLR)
Parties
Appellant: Rauf Ochieng Okal; Respondent: Adalla Crispus Sala
Court
High Court
Court Station
High Court at Kisumu
Jurisdiction
Kenya
Case Number
Civil Appeal 124 of 2018
Procedural Posture
Civil Appeal / Judgment
Outcome
appeal dismissed
Legal Topics
Contract Rescission, Sale of Goods, Failure of Consideration, Variation of Contract, Counterclaim Dismissal
Source Language
en
Commercial and Corporate Civil Procedure Contract Rescission Sale of Goods Failure of Consideration Variation of Contract Counterclaim Dismissal

Source-derived case record

Summary, issues, holding and outcome

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Parties

Rauf Ochieng Okal

Appellant

Adalla Crispus Sala

Respondent

Procedural Posture

Civil Appeal / Judgment

Legal Issues

  1. 1 Whether the appellant made full disclosure regarding the encumbrance on the vehicle at the time of contract formation.
  2. 2 Whether the respondent breached the contract by failing to pay the balance of the purchase price on time.
  3. 3 Whether the conduct of the parties amounted to a variation of the original contract terms.

Ratio Decidendi

The High Court found that while the respondent did not strictly comply with the payment timelines under the sale agreement, the appellant's acceptance of late payments and ongoing communications demonstrated a mutual variation of the contract terms. The appellant failed to disclose at the outset that the vehicle was encumbered by a loan with Bridges Credit Limited, only revealing this after the agreement was executed. When the vehicle was repossessed and sold by the creditor, it became impossible for the appellant to complete the sale, resulting in a total failure of consideration. The appellant's subsequent assurances to refund the respondent further evidenced acknowledgment of this...

Court Disposition

appeal dismissed

Orders

  • The appeal is dismissed in its entirety.
  • The appellant shall refund to the respondent the full amount paid under the contract.