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ELCPartially AllowedELC Case No. 1323 of 2013· [2021] KEELC 2690 (KLR)

Abdelhafid Tchoketch & another v Mercy Nyambura Kanyara [2021] KEELC 2690 (KLR)

Environment and Land Court
1 July 2021
8,024 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~32 min to read original · ~4 min brief

The bottom line

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A Nairobi court ordered a land seller to complete a Kshs.87 million sale after eight years, ruling she could not back out by claiming the contract had lapsed or been frustrated.

What this practically means

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Executive summary

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The plaintiffs sued for specific performance of a written agreement of sale dated 2nd April 2013 under which the defendant agreed to sell LR Nos 7380/23, 7380/24 and 7380/25 (original LR 7380/16) for Kshs.87,000,000, with a 10% deposit paid on 15th April 2013 and a 45-day completion period expiring 17th May 2013. The plaintiffs alleged the defendant breached the contract by failing to deliver completion documents despite notices to complete, while the defendant contended the contract lapsed on the completion date, was frustrated by delays at the Land Registry and National Land Commission and a boundary dispute on LR 7380/25, and was rescinded by her letter of 22nd August 2013. The court framed five issues: enforceability, frustration, entitlement to specific performance, other reliefs, and costs. It held that the parties extended the completion date by conduct through their correspondence and meetings, that the defendant was estopped from asserting rescission since she was still negotiating completion as at 30th September 2013, and that the alleged frustration was self-induced because the defendant took no demonstrable steps to procure the completion documents. The court found the agreement valid and enforceable, granted specific performance, a permanent injunction, and declarations of breach and ownership, directed the plaintiffs to pay the balance into court upon which registration would follow, with the Deputy Registrar empowered to execute the transfer on default. The claim for special damages of Kshs.11,275,000 and monthly loss-of-user was refused as unsupported by the contract; general damages of Kshs.300,000 were awarded instead. Costs went to the plaintiffs.

Key legal issues

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01

Whether a valid and enforceable contract existed despite expiry of the completion date

Holding

The sale agreement of 2nd April 2013 remained valid and enforceable because the parties extended the completion date by conduct through correspondence and meetings after 17th May 2013

Reasoning

Although clause 13.7 made time of the essence, the defendant's own witness statement admitted mutual extensions, and her letters of 9th July, 22nd August and 30th September 2013 showed continuing engagement on completion, including an agreed addendum. The 30th September 2013 letter post-dated the alleged rescission and demonstrated willingness to complete, estopping the defendant from asserting termination.

p. 8
02

Whether the contract was frustrated

Holding

Frustration was not established; the alleged frustration was self-induced because the defendant took no demonstrable steps to obtain completion documents

Reasoning

The defendant produced no correspondence with the Land Registry or National Land Commission, took no legal action against those bodies, and filed no suit over the alleged boundary encroachment on LR 7380/25. The claim of a missing title was unpleaded and unsubstantiated. Under Davis Contractors, frustration requires circumstances rendering performance radically different without the default of either party.

p. 9
03

Whether the plaintiffs were entitled to specific performance

Holding

Specific performance was granted; damages would be inadequate for a contract for sale of land and no equitable bar was shown

Reasoning

The contract was valid, the plaintiffs committed no breach, and the vendor was obligated to avail completion documents before the balance was deposited. Denying the relief would give the vendor unfair advantage after seven years of failure to procure completion documents. The court applied the principle that damages are ordinarily inadequate for breach of contracts for sale of land and exercised its discretion for the plaintiffs.

p. 9
04

Whether the plaintiffs were entitled to the special damages claimed

Holding

The special damages claim of Kshs.11,275,000 and monthly loss-of-user amounts was refused

Reasoning

The sale agreement made no provision for rent or loss of user, the pleadings did not state the intended use of the properties, and no building plans were produced to show an intention to develop. General damages of Kshs.300,000 were awarded instead as reasonable compensation for breach.

p. 10

Legal principles established

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  • Parties may extend a completion date by conduct notwithstanding a time-is-of-the-essence clause, as evidenced by continuing correspondence and engagement after the contractual completion date
  • A party alleging frustration of contract bears the burden of demonstrating that it took all reasonable steps to procure performance, failing which the frustration will be treated as self-induced
  • A vendor who continues negotiating completion after an alleged rescission is estopped from asserting that the contract was terminated

Court orders

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  1. 1.Permanent injunction restraining the defendant from occupying, constructing, using, interfering with, selling or dealing with LR Nos 7380/23, 7380/24 and 7380/25 (original LR 7380/16) otherwise than as provided in the agreement of sale dated 2nd April 2013
  2. 2.Declaration that the defendant is in breach of her obligations under the contract dated 2nd April 2013
  3. 3.Declaration that the plaintiffs are the true/bonafide owners of LR Nos 7380/23, 7380/24 and 7380/25 (original LR 7380/16)
  4. 4.Plaintiffs directed to pay the balance of the purchase price into court, upon which the Registrar of Title Karen Area, Nairobi is ordered to register Parcels 7380/23, 7380/24 and 7380/25 in favour of the plaintiffs
  5. 5.Order of specific performance compelling the defendant within 30 days to receive the balance purchase price and execute/deliver all completion documents for transfer; in default, the Deputy Registrar to execute the transfer upon payment of the balance into court
  6. 6.General damages for breach of contract of Kshs.300,000/-
  7. 7.Costs of the suit awarded to the plaintiffs

Authorities

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Legislation

  • Law of Contract Act, Cap 23 Laws of KenyaSection 3(3)
  • Law Society of Kenya Conditions of Sale 1989Condition 4(7)

Cases cited (20)

  • Jeremiah Mucheru Ndibui vs David Gichure Ngugi
    [2019] eKLR
  • National Bank of Kenya Ltd vs Pipeplastic Samkolit (K) Ltd & Another
    [2001] eKLR
  • Benard Ng'ang'a Ndirangu vs Samuel Wainaina Tiras
    [2019] eKLR
  • Thrift Homes Limited vs Kenya Investments Limited
    [2015] eKLR
  • Steadman vs Steadman
    (1976) AC 536
  • In the Matter of the National Land Commission
    [2015] eKLR
  • Lucy Njeri Njoroge vs Kaiyahe Njoroge
    [2015] eKLR
  • John Kung'u Kiarie vs Dyer & Blair Investment Bank Ltd & Another
    [2016] eKLR
  • Jacob Muriungi Murea vs Salome Njoki Njuguna
    [2018] eKLR
  • P. N. Gichoho Ngugi vs County Government of Laikipia & Another
    [2017] eKLR
  • Henry Mwangi Gatai & Another vs Margaret Godwin & 3 Others
    [2018] eKLR
  • J. T. M Construction & Equipment Ltd vs Circle B Farms Ltd
  • Housing Company of East Africa Ltd vs Board of Trustees National Social Society Fund & 2 Others
    [2018] eKLR
  • Emo Investment Ltd vs Stephanus Petrus Krugen
    [2010] eKLR
  • Anne Murambi vs John Munyao Nyamu & Another
    [2018] eKLR
  • Gardev Singh Birdi & Another vs Singh Ghatora & Another
    Civ Appeal No 165 of 1996
  • Thrift Homes Ltd vs Kays Investment Ltd
    [2015] eKLR
  • Orion East Africa Ltd vs Ite Farmers Corporation Society Ltd
  • Manzour vs Baram
    [2003] 2EA 580
  • Davis Contractors Ltd vs Fareham U.D.C
    [1956] AC 696
Jurisdiction invoked
Original jurisdiction of the Environment and Land Court under Article 162(2)(b) of the Constitution (as established by the Environment and Land Court Act); the judgment itself does not expressly cite the provision

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, "Abdelhafid Tchoketch & another v Mercy Nyambura Kanyara [2021] KEELC 2690 (KLR)", Case Analysis (2021). ELC Case No. 1323 of 2013. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/2690/eng@2021-07-01

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