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ELCPartially AllowedNot stated in judgment (plaint dated 10th September 2020)· [2022] KEELC 2928 (KLR)

Mwambaji v Tujenge Homes Limited (Environment & Land Case E001 of 2020) [2022] KEELC 2928 (KLR)

Environment and Land Court
21 June 2022
1,476 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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A Kenyan court refused to force a land sale because there was no written, signed contract, but ordered the seller to refund the buyer's Kshs. 350,000 with interest.

What this practically means

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Executive summary

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The plaintiff sued by plaint dated 10th September 2019 (sic: 2020) seeking a declaration that he was the bona fide owner of Malindi Fahari Garden Plot 27 carved out of Title No. Kilifi/mbaraka Chembe/843, an order of specific performance compelling the defendant to subdivide and transfer the plot, an order for the Deputy Registrar to sign transfer documents, or in the alternative a refund of Kshs. 350,000/- paid as purchase price, with interest and costs. The defendant did not enter appearance or file a defence, and the suit proceeded by formal proof. The plaintiff testified that on 13th May 2019 he paid the full purchase price for the plot during a purported subdivision under the estate name Fahari Garden, but the defendant refused to execute a sale agreement, effect a transfer, or refund the price. The court held that under Section 3(3) of the Law of Contract Act, a contract for the disposition of an interest in land must be in writing, signed by all parties and attested; the oral arrangement evidenced only by email correspondence did not comply. Relying on the principle that uncontroverted evidence does not relieve a plaintiff of the burden of proof on a balance of probabilities, the court found that although payment of Kshs. 350,000/- was undisputed and there was intention to buy and sell, specific performance was unavailable both for want of a written contract and because an adequate alternative remedy existed. The claim for specific performance and the declaration of ownership were accordingly refused, but judgment was entered for the plaintiff for a refund of the purchase price with interest at court rates from the date of filing until payment in full, together with costs.

Key legal issues

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01

Whether a valid contract for the sale of land existed

Holding

There was only an oral agreement evidenced by email correspondence and payment, which does not satisfy Section 3(3) of the Law of Contract Act

Reasoning

The plaintiff testified that no written, signed agreement was executed despite efforts by himself and his lawyer; the email correspondence proved intention to buy and sell and proof of payment of Kshs. 350,000/-, but fell short of the statutory formalities for a disposition of an interest in land.

p. 3
02

Whether specific performance should be granted

Holding

Specific performance was refused because the contract was not in writing and an adequate alternative remedy of refund was available

Reasoning

Specific performance is discretionary and premised on a valid enforceable contract; absent compliance with statutory formalities the contract is defective, and even where valid, the court will not order specific performance where damages or another adequate remedy exists — here, a refund of the purchase price.

p. 4
03

Whether the plaintiff is entitled to a refund

Holding

Yes — the payment of Kshs. 350,000/- was undisputed and the plaintiff was entitled to a refund with interest and costs

Reasoning

The email correspondence and payment evidence, which were uncontroverted, established payment of the full purchase price. Since the sale could not be enforced for want of a written contract, the only available remedy was restitution of the purchase price with interest at court rates from filing and costs.

p. 4

Legal principles established

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  • A contract for the disposition of an interest in land must be in writing, signed by all parties and attested by a witness under Section 3(3) of the Law of Contract Act
  • Uncontroverted evidence does not shift the burden of proof; a plaintiff must still prove its case on a balance of probabilities
  • Specific performance is a discretionary equitable remedy based on the existence of a valid enforceable contract, and will not be granted where an adequate alternative remedy exists

Court orders

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  1. 1.Refund of the purchase price of Kshs. 350,000/- to the plaintiff
  2. 2.Interest on the purchase price at court rates from the date of filing the suit until payment in full
  3. 3.Costs of the suit to the plaintiff

Authorities

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Legislation

  • Law of Contract ActSection 3(3)
  • Civil Procedure RulesOrder 21 [1]

Cases cited (6)

  • Fidelity Commercial Bank Limited v Kenya Grange Vehicle Industries Limited
    [2017] eKLR
  • Storer v Manchester City Council
    [1974] 1 W.L.R 1403
  • Yaxley v Gotts & another
    [2000] ch 162
  • Loyds Bank PLC v Rosset
    [1991] 1 AC 107, 132
  • Kenya Power & Lighting Company Limited v Nathan Karanja Gachoka & Another
    [2016] eKLR
  • Reliable Electrical Engineers Ltd v Mantrac Kenya Limited
    (2006) eKLR
Jurisdiction invoked
Original civil jurisdiction over a claim for land sale specific performance and refund (plaint dated 10th September 2020)

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, "Mwambaji v Tujenge Homes Limited (Environment & Land Case E001 of 2020) [2022] KEELC 2928 (KLR)", Case Analysis (2022). Not stated in judgment (plaint dated 10th September 2020). Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2022/2928/eng@2022-06-21

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