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ELCDismissedNot stated in the judgment as provided· [2021] KEELC 787 (KLR)

Simon George Obosi v Sophie Kabon Langat [2021] KEELC 787 (KLR)

Environment and Land Court
8 November 2021
4,326 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan court dismissed a buyer's lawsuit, ruling the property sale failed through no one's fault and the seller owed nothing.

What this practically means

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Executive summary

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The plaintiff sued the defendant for breach of an agreement for sale dated 2011 over Unit 06 on L.R No. 140/479 (subsequently renumbered L.R No. 140/482/06), purchased at Kshs. 5,500,000/=. The plaintiff paid a deposit of Kshs. 1,500,000/= (Kshs. 1,050,908/= directly to N.S.S.F to redeem the property and Kshs. 449,092/= to the defendant) and arranged a mortgage from Standard Chartered Bank for the balance. The defendant furnished completion documents including a transfer executed by N.S.S.F directly to the plaintiff and N.S.S.F's consent, but registration failed because N.S.S.F had not registered a Sectional Plan under the Sectional Properties Act, 1987, so the financier could not register the charge or release the balance. The defendant later declared the transaction frustrated and refunded the deposit after 47 months. The plaintiff sought mandatory injunctions, accounts of rent, alternative pro-rata valuation refund, special damages of Kshs. 798,960/= and general damages. The court framed four issues and held that the defendant did not breach the agreement, as the failure to register the transfer rested on N.S.S.F's omission to register the Sectional Plan, which the defendant could not cure. The contract was frustrated through no fault of either party. The plaintiff, being a mere purchaser, had no beneficial interest entitling him to rent; special damages were neither pleaded nor proved; and general damages are not awardable for breach of contract. The suit was dismissed with each party bearing its own costs.

Key legal issues

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01

Whether the defendant breached the agreement for sale

Holding

No breach; the defendant furnished all available completion documents and the failure to register the transfer was due to N.S.S.F's failure to register the Sectional Plan

Reasoning

The plaintiff knew the property remained registered in N.S.S.F's name under the Sectional Properties Act, 1987. The defendant released the completion documents to the financier's advocates, and N.S.S.F itself executed a transfer and consent in the plaintiff's favour. The transfer failed only because the Sectional Plan for L.R No. 140/482 had not been registered at the lands office, a duty resting solely on N.S.S.F and beyond the defendant's capacity.

p. 4
02

Whether the agreement was frustrated

Holding

Yes; the contract was frustrated, neither party being at fault

Reasoning

Both parties were ready and willing to perform: the plaintiff paid the deposit and secured a mortgage facility, while the defendant provided the available completion documents. The sole impediment was the absence of a registered Sectional Plan, for which neither party was responsible. Performance was therefore impossible without fault on either side, satisfying frustration.

p. 5
03

Whether the plaintiff contributed to the purchase price and was entitled to rent as co-owner

Holding

No; the relationship was vendor and purchaser, and the deposit was not part payment of the N.S.S.F purchase price

Reasoning

The Kshs. 1,500,000/= paid was a deposit under the vendor-purchaser agreement with the defendant, part of which (Kshs. 1,050,908/=) was channelled to N.S.S.F to redeem the property. The plaintiff was a stranger to the defendant's tenant-purchase agreement with N.S.S.F, so no trust or beneficial co-ownership arose and he could not claim a share of rent.

p. 5
04

Entitlement to the reliefs sought

Holding

All reliefs refused; the suit was dismissed

Reasoning

Since no breach was proved, the reliefs anchored on breach failed. Specific performance was additionally not maintainable because the deposit had been refunded and a duly executed transfer already existed. Special damages were not pleaded or proved, general damages are not awarded for breach of contract, and no material was laid for assessing loss of bargain.

p. 5

Legal principles established

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  • Where a contract cannot be performed as a result of no fault of either party, it is frustrated and neither party is liable for breach.
  • A party cannot be held liable for the failure of a third party (here N.S.S.F) to perform a statutory/contractual obligation that party alone could perform.
  • General damages are not payable for breach of contract; the remedy is loss of bargain which must be established by material evidence.
  • Special damages must be specifically pleaded and proved, not merely claimed.

Court orders

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  1. 1.The plaintiff's suit is dismissed with each party bearing its own costs.

Authorities

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Legislation

  • Sectional Properties Act1987

Cases cited (1)

  • Willy Kimutai Kitilit v. Michael Kibet
    [2018] eKLR
Jurisdiction invoked
Original civil jurisdiction over a dispute relating to land (sale of a sectional unit), the court being seized of the plaint filed 29th January 2015

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Simon George Obosi v Sophie Kabon Langat [2021] KEELC 787 (KLR)", Case Analysis (2021). Not stated in the judgment as provided. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/787/eng@2021-11-08

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.