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ELCDismissedCivil Appeal (Nakuru) arising from Civil Suit No 386 of 2011, Memorandum of Appeal dated 3rd August, 2022· [2024] KEELC 721 (KLR)

Kahindi (As the Administratix of the Estate of Kahindi David Kuria) v Wanderi (Civil Appeal E028 of 2022) [2024] KEELC 721 (KLR)

Environment and Land Court of Kenya / High Court at Nakuru (first appellate court)
15 February 2024
6,618 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~26 min to read original · ~4 min brief

The bottom line

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A Kenyan court ruled that once a land sale contract is signed and completed, a seller cannot simply cancel it unilaterally and refund the money.

What this practically means

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Executive summary

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This is a first appeal against the judgment of Hon Ruth Kefa (PM) delivered on 6th July 2022 in Civil Suit No 386 of 2011, in which the Plaintiff's claim for injunction over plot No 85/3 was dismissed and the Defendant's counterclaim succeeded, with a mandatory injunction and an order compelling execution of transfer documents for 0.041HA of the plot. The Appellant, substituted as plaintiff after the death of the original seller, contended that the sale agreements of 8th and 22nd December 2010 were ambiguous, that the vacant parcel could not yield a registrable 1/8 acre, that the purported rescission and refund of Kshs 300,000 was valid, and that the orders would unjustly enrich the Respondent. L.A. Omollo J framed a single issue: whether the Trial Magistrate erred in finding the agreements valid and effective and the rescission invalid. The court found no ambiguity in the agreements, noting the buyer's immediate right of possession (clause 6) and the 'as is where is' clause (clause 7), and that the Respondent completed the contract and took possession without breach. On rescission, the court held that the advocate's letter of 18th February 2011 merely offered revocation as an alternative, was never accepted, and that unilateral revocation of a contract is impermissible; revocation must be communicated and accepted or judicially sought. The court endorsed the Magistrate's findings on validity and the inapplicability of the spousal consent requirement, which came into force on 2nd May 2012, after the agreement. The appeal was dismissed, with judgment entered for the Respondent on the counterclaim, but the court varied the orders by directing a joint survey within 30 days, costs shared, to establish the extent of the portion occupied before transfer documents are executed. The Respondent was awarded costs of the suit and of the appeal.

Key legal issues

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01

Validity of the sale agreements and effect of the 'as is where is' clause

Holding

The agreements dated 8th and 22nd December 2010 were valid, unambiguous and had taken effect; the buyer took possession and the seller could not revoke

Reasoning

The court examined the agreements and found no ambiguity: the seller described himself as beneficial owner of a quarter acre and agreed to sell an eighth to be excised for Kshs 420,000. Clause 6 entitled the buyer to immediate possession and clause 7 recorded the buyer's satisfaction with the parcel sold 'as is where is' after an official search. The Respondent completed the agreement, took possession and raised no complaint about size, so the contract took effect and the Trial Magistrate's finding was upheld.

p. 11
02

Whether the purported revocation of the sale agreement was effective

Holding

The revocation was invalid: the letter of 18th February 2011 only offered revocation as an alternative, was never accepted, and no suit for revocation was the proper route taken

Reasoning

The court identified the recognised grounds of rescission (breach, misrepresentation, fraud, mistake, coercion) and found none was invoked. The advocate's letter only offered revocation as an alternative to selling the land actually available; the Respondent did not accept it. Since revocation must be communicated and either consented to or judicially obtained, unilateral revocation backed by a refund cheque could not undo a completed contract, particularly where the buyer was not in breach.

p. 12
03

Whether the orders of the Trial Magistrate should stand given the absence of a survey report

Holding

The mandatory injunction and the order to execute transfer documents were correct in principle, but the size of the portion occupied needed to be established by survey rather than assumption

Reasoning

While endorsing the Trial Magistrate's findings, the court noted no survey report had been produced to establish the size/measurement of the portion in the Respondent's possession. It therefore sustained the substance of the counterclaim orders but directed a joint survey within 30 days, with costs shared, to determine the extent of the portion before transfer documents are executed in respect of it.

p. 12
04

Spousal consent and retrospective application of the law on matrimonial property

Holding

The agreement, executed in December 2010, predated the statutory requirement of spousal consent which came into force on 2nd May 2012, so its absence could not invalidate the sale

Reasoning

The Learned Magistrate observed that the law requiring a vendor to obtain a spouse's consent came into force on 2nd May 2012, after the agreement of December 2010, and laws do not apply retrospectively. The appellate court adopted this as a correct observation. The Respondent had also urged that the matrimonial property claim was never pleaded, a submission the record shows went unchallenged in the court's analysis.

p. 11

Legal principles established

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  • Courts cannot rewrite contracts between parties; parties are bound by the terms of their contract, though courts may refuse to enforce unconscionable, unfair or oppressive contracts
  • Contracts may be rescinded only on recognised grounds (breach, misrepresentation, fraud, mistake, coercion); unilateral revocation must be communicated and accepted, or else litigated — self-help revocation cannot succeed
  • A court's function is to construe contracts, not to make them

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Judgment entered in favour of the Respondent: permanent injunction restraining the Plaintiff/Appellant by himself, legal representatives, agents and/or servants from trespassing, entering, developing, interfering with and/or dealing with that portion of plot No 85/3 in occupation and use by the Defendant/Respondent
  3. 3.The Plaintiff/Appellant and the Defendant/Respondent shall within 30 days carry out a joint survey to determine the extent of the portion of plot No 85/3 in occupation and use by the Respondent, the cost to be shared between both parties
  4. 4.The Plaintiff/Appellant shall execute and surrender to the Defendant/Respondent all necessary transfer documents in respect of the portion of plot No 85/3 determined by the survey to be in occupation and use by the Respondent
  5. 5.The Defendant/Respondent shall have costs of the suit
  6. 6.The Defendant/Respondent shall have costs of the appeal

Authorities

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Legislation

  • Law of Contract Act (Cap 23)Section 3(3)
  • Auctioneers Act(Cap 526)
  • Law Society of Kenya Conditions of Sale

Cases cited (11)

  • Selle & Another vs Associated Motor Boat Company Ltd & others
    [1968] EA 123
  • Eric v J. Makokha & 4 others v Lawrence Sagini & 2 others
    [1994] eKLR
  • Ngere Tea Factory Company Ltd v Alice Wambui Ndome
    [2018] eKLR
  • Shah vs Guilders International Bank Ltd
    [2003] KLR
  • Anne Murambi v John Munyao Nyamu & another
    [2018] eKLR
  • Kinangop Farmers Self Help Group v Nicholas Wachira Mutungi & 4 others
    [2020] eKLR
  • Rose Chepkirui Mibei v Jared Mokua Nyariki & 2 others
    [2015] eKLR
  • Mamta Peeush Mahajan [Suing on behalf of the estate of the late Peeush Premlal Mahajan] v Yashwant Kumari Mahajan [Sued personally and as Executrix of the estate and beneficiary of the estate of the late Krishan Lal Mahajan]
    [2017] eKLR
  • Margaret Njeri Muiruri v Bank of Baroda (Kenya) Limited
    [2014] eKLR
  • National Bank of Kenya Ltd vs Pipeplastic Sankolit (K) Ltd
    Civil Appeal No. 95 of 1999
  • Kanyango vs KCB Ltd & another
    (2004) 1 KLR 126
On appeal from
Principal Magistrate's Court
Civil Suit No 386 of 2011
Jurisdiction invoked
First appellate jurisdiction over the subordinate court's judgment (appeal by way of written submissions)

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, "Kahindi (As the Administratix of the Estate of Kahindi David Kuria) v Wanderi (Civil Appeal E028 of 2022) [2024] KEELC 721 (KLR)", Case Analysis (2024). Civil Appeal (Nakuru) arising from Civil Suit No 386 of 2011, Memorandum of Appeal dated 3rd August, 2022. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/721/eng@2024-02-15

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