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ELCPartially AllowedNot stated in judgment (Plaint dated 19th June 2015, filed 2nd July 2015)· [2021] KEELC 3938 (KLR)

Susan Wanjiku Muthama v Malindi Estates Limited [2021] KEELC 3938 (KLR)

Environment and Land Court
23 March 2021
3,011 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~12 min to read original · ~4 min brief

The bottom line

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A Kenyan court ordered a land seller to complete a 2007 sale after full payment, ruling that oral plot swaps cannot override a written agreement.

What this practically means

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Executive summary

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The Plaintiff sued for specific performance of a sale agreement dated 7th May 2007 under which the Defendant agreed to sell her a portion of LR No. 4883 (Original No. 1935/626) Malindi for Kshs 650,000/-. She alleged she paid the full price but the Defendant refused to execute an indenture she prepared and supplied the wrong Deed Plan, for Plot No. 4884. The Defendant denied full payment, asserting only Kshs 450,000/- was received, that the plots had been mutually swapped, and that the unpaid balance was forfeitable as liquidated damages. The court found the Defendant's payment contention not candid: the receipts for Kshs 450,000/- excluded the acknowledged Kshs 100,000/- deposit, some receipts bore unexplained alterations, and no demand for a balance was ever made, even when transfer documents were requested in 2013. The alleged oral variation of the plot number failed for want of written agreement, and the claim for an outstanding balance was held to be an afterthought. The court also held that by accepting late payments the Defendant waived the contractual completion date of 15th May 2008. Judgment was entered for the Plaintiff as prayed in paragraph (a) of the Plaint - an order compelling completion of the contract, with the Deputy Registrar empowered to execute documents in default. No damages were awarded as special damages were unproven and general damages have no basis in a breach of contract claim. The Plaintiff obtained the costs of the suit.

Key legal issues

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01

Payment of the purchase price

Holding

The court found the Defendant received the full purchase price of Kshs 650,000/- for Plot No. 4883

Reasoning

The Defendant's claim that only Kshs 450,000/- was paid was not candid: the receipts omitted the acknowledged Kshs 100,000/- deposit, two receipts had unexplained alterations (Kijabe Street crossed out), and no demand for the alleged Kshs 200,000/- balance was ever made even when transfer documents were requested in 2013.

p. 4
02

Attempted variation of the property sold

Holding

No valid variation substituting Plot No. 4884 for Plot No. 4883; the claim of a balance was an afterthought

Reasoning

The Defendant alleged a mutual oral agreement to swap plots but produced no written variation. The Plaintiff denied agreeing to take an alternative plot. The court held the purported variation could not stand orally and that the balance claim was aimed at frustrating the Plaintiff.

p. 4
03

Breach and entitlement to specific performance

Holding

The Defendant breached by refusing to execute the indenture and by failing to supply the correct Deed Plan for Plot No. 4883

Reasoning

Despite full payment, the Defendant declined to execute the transfer documents and insisted on providing a Deed Plan for Plot 4884, land the Plaintiff never purchased. The court accordingly ordered specific performance with the Deputy Registrar empowered to execute documents in default.

p. 4
04

Damages

Holding

No damages awarded

Reasoning

Though the delay caused loss and damage, special damages were not proved and general damages are not generally recoverable for breach of contract. Only the prayer for specific performance succeeded.

p. 4

Legal principles established

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  • An agreement in writing requiring variations cannot be varied by oral agreement absent written agreement
  • A vendor who accepts late part-payments without objection waives the contractual completion date

Court orders

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  1. 1.Judgment entered for the Plaintiff as prayed at paragraph 'a' of the Plaint - an order compelling the Defendant to perform and complete its part of the bargain under the contract executed on 7th May 2007, and in default of execution of registrable documents/transfer, the Deputy Registrar Malindi Law Courts to execute the same on behalf of the Defendant
  2. 2.Plaintiff awarded the costs of the suit
Jurisdiction invoked
Original civil jurisdiction over a claim for specific performance of a contract for sale of land

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, "Susan Wanjiku Muthama v Malindi Estates Limited [2021] KEELC 3938 (KLR)", Case Analysis (2021). Not stated in judgment (Plaint dated 19th June 2015, filed 2nd July 2015). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2021/3938/eng@2021-03-23

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