[2017] KEELC 902 (KLR)

[2017] KEELC 902 (KLR)

The court found that the sale agreement between the parties was validly entered into and contained a clear provision (Clause 9) that in the event of failure to complete the sale, the deposit paid would be refunded within 30 days, failing which it would attract interest at 30% per annum until settlement. The defendant failed to complete the transaction and did not refund the deposit within the stipulated period. The defendant only refunded the principal sum in December 2016, well after the breach occurred in November 2008. There was no evidence of coercion, misrepresentation, or fraud in the formation of the agreement. The court held that the plaintiff was entitled to interest at 30% per...

Citation
[2017] KEELC 902 (KLR)
Parties
Applicant: Ruth Njeri Kuria, suing through Samuel Kungu Kuria by virtue of Power of Attorney registered as IP/A 57190/1; Defendant: Njeri Cucu
Court
Environment and Land Court
Court Station
Environment and Land Court at Nairobi
Jurisdiction
Kenya
Judgment Date
1 November 2017
Case Number
Environment & Land Case 732 of 2012
Procedural Posture
Civil Suit / Judgment
Outcome
judgment for the plaintiff in part
Legal Topics
Specific Performance, Contract Breach, Refund of Deposit, Interest on Deposit
Source Language
English
Land and Property Civil Procedure Specific Performance Contract Breach Refund of Deposit Interest on Deposit

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Parties

Ruth Njeri Kuria, suing through Samuel Kungu Kuria by virtue of Power of Attorney registered as IP/A 57190/1

Applicant

Njeri Cucu

Defendant

Procedural Posture

Civil Suit / Judgment

Legal Issues

  1. 1 Whether the plaintiff is entitled to specific performance of the sale agreement or a refund of the deposit with interest at 30% per annum.
  2. 2 Whether the defendant breached the sale agreement by failing to complete the transaction and refund the deposit within the stipulated period.
  3. 3 Whether the plaintiff is entitled to costs and interest at court rates.

Ratio Decidendi

The court found that the sale agreement between the parties was validly entered into and contained a clear provision (Clause 9) that in the event of failure to complete the sale, the deposit paid would be refunded within 30 days, failing which it would attract interest at 30% per annum until settlement. The defendant failed to complete the transaction and did not refund the deposit within the stipulated period. The defendant only refunded the principal sum in December 2016, well after the breach occurred in November 2008. There was no evidence of coercion, misrepresentation, or fraud in the formation of the agreement. The court held that the plaintiff was entitled to interest at 30% per...

Court Disposition

judgment for the plaintiff in part

Orders

  • Judgment entered in favour of the plaintiff for interest at 30% per annum on Kshs.570,000 from 28th December 2008 until 14th December 2016.
  • Plaintiff awarded costs and interest at court rates.