Catholic Diocese of Homabay Registered Trustees v Christine Nyanchama Oanda [2018] KEELC 3563 (KLR)
The bottom line
#A Kenyan land buyer lost her mansion dispute because she delayed paying the balance and couldn't prove she was ready and willing to complete the purchase.
What this practically means
#Executive summary
#Key legal issues
#Whether the Plaintiff was entitled to rescind the contract of sale
Yes; the Defendant failed to complete within the 42-day period under the Law Society Conditions of Sale and failed to pay the balance after the 21-day notice, so time was made of the essence and rescission was lawful
The agreement had no completion date, so the Law Society Conditions applied, fixing completion at 42 days. The Defendant took over eight months to forward the transfer and never paid the balance demanded. The 21-day notice made time of the essence; non-payment entitled the vendor to rescind.
Whether the Defendant was entitled to specific performance
No; she was not ready and willing to complete, having deposited only part of the balance
Specific performance requires the purchaser to prove continuous readiness and willingness. The Defendant deposited Kshs. 1,296,589, less than the outstanding balance of Kshs. 2,587,089, and did not challenge the demanded balance in her correspondence, demonstrating she was not ready and willing to conclude within a reasonable time.
Whether the Defendant paid Kshs. 1,250,000 to Patrick Osero for subdivision and title processing, reducing the balance
No; the claim was not proved since the subdivision work predated Osero's instructions
The subdivision scheme approvals dated 2005 and 2006 and payments made in 2007 showed the survey and subdivision work was concluded before Osero was instructed in 2008. The alleged payment appears in no correspondence and Osero, not a licensed surveyor, had no evidence of rendering the services invoiced.
The balance of the purchase price
Kshs. 2,587,089, not Kshs. 1,336,589 as the Defendant submitted
The court found the Defendant failed to prove the alleged additional payments reducing the balance; the deposit was Kshs. 412,911 as captured in the agreement.
Legal principles established
#- Where the completion date is not set in a sale agreement, the Law Society Conditions of Sale fix completion at 42 days from the date of the contract
- A purchaser who takes possession before completion occupies as licensee of the vendor and must keep the property in good repair
- Unreasonable delay in completing entitles a party to make time of the essence of the contract
- Mere expression of willingness to pay does not establish readiness and willingness to complete a sale
Court orders
#- 1.Prayers (a) to (g) of the Plaint dated 21/9/2010 granted
- 2.The Defendant's counterclaim dismissed with costs to the Plaintiff
- 3.Funds deposited in court by the Defendant to be released to the Defendant forthwith
- Jurisdiction invoked
- Original civil jurisdiction of the Environment and Land Court over the suit property (land dispute)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Catholic Diocese of Homabay Registered Trustees v Christine Nyanchama Oanda [2018] KEELC 3563 (KLR)", Case Analysis (2018). ELC. Case No. 440 of 2010. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2018/3563/eng@2018-04-04
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.