NYABWARI & SONS v NYARANGI NCHOGU [1986] KECA 56 (KLR)
The bottom line
#Kenya's High Court confirmed that an agent who sells your goods must account for the proceeds, and courts can reject inflated expense claims.
What this practically means
#Executive summary
#Key legal issues
#Agent's duty to account
The defendant, having collected and sold the consigned goods as the plaintiff's agent, was bound to account for the proceeds after allowable expenses and commission
The court treated the relationship as one of agency: the defendant collected and sold the plaintiff's goods and therefore owed a fiduciary duty of accounting. The only account rendered was an October 8, 1981 letter claiming the goods sold for Kshs 210,000 with costs of Kshs 218,613.80. The court assessed sale proceeds, allowed proven expenses of Kshs 53,374.40, deducted the goods' cost, allowed 10% commission, and gave judgment for the balance.
Evidentiary weight of an agent's uncorroborated account
Where the plaintiff produces no evidence of the actual sale prices, the court may accept the agent's sale figure even where it disbelieves other parts of his evidence
The judge found the defendant 'plainly a liar', yet in the absence of any evidence from the plaintiff as to the sale prices, accepted the defendant's figure of Kshs 210,000 for the TV sets. However, the court scrutinised and rejected the defendant's claimed expense figures, allowing only Kshs 53,374.40 of the Kshs 218,613.80 claimed.
Commission and interest on agency proceeds
The agent is entitled to 10% commission on net profits, and interest on the balance due runs from the date payment should have been made to the principal
From the accountable sum of Kshs 196,625.60 the court deducted the goods' cost of Kshs 78,074.85, producing net profits of Kshs 118,550.75, and allowed the defendant Kshs 11,855 as 10% commission. Judgment was entered for Kshs 106,695 with interest at court rates from October 1, 1981, the date the sum should have been paid.
Legal principles established
#- An agent who sells goods on behalf of a principal is under a duty to account to the principal for his stewardship
Court orders
#- 1.Judgment for the plaintiff in the sum of Kshs 106,695
- 2.Interest on that sum at court rates from October 1, 1981
- 3.Plaintiff awarded costs of the suit
- Jurisdiction invoked
- Original civil jurisdiction of the High Court (not stated by reference to a specific provision in the judgment)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "NYABWARI & SONS v NYARANGI NCHOGU [1986] KECA 56 (KLR)", Case Analysis (1986). Not stated in judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/1986/56/eng@1986-11-06
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.