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Court of AppealDismissedCivil Appeal 203 of 2002· [2007] KECA 501 (KLR)

Ratilal Gova Sumaria & 1 other v Allied Industries Limited

Court of Appeal of Kenya
20 December 2007
2,651 words in judgment
View original judgmentRead on Kenya Law Watch case
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The bottom line

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Kenya's Court of Appeal confirmed that a verbal agreement to sell land is unenforceable unless it is written, signed, or the buyer has taken possession.

What this practically means

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Executive summary

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The appellants, unsuccessful plaintiffs before the High Court, appealed against the dismissal of their suit seeking specific performance of an alleged 1986 verbal agreement for the sale of land parcel L.R. No. 29/6/5 Baba Dogo Road, Ruaraka, for Kshs.1,200,000, on which they had paid a Kshs.120,000 deposit. The respondent denied that the discussions matured into an agreement, contending that a prepared written agreement was never accepted or signed. The Commissioner of Assize dismissed the suit on 5th June 2002, holding that no written agreement existed, the parties were not ad idem on the terms, and the appellants had not taken possession in part performance. The Law of Contract Act as amended by Act 21 of 1990 contains savings such that the pre-amendment writing requirement governed the dispute. This Court, sitting as a first appellate court, restated its duty to re-evaluate the evidence while deferring to the trial court's advantages, citing Peters v Sunday Post, Selle v Associated Motor Boat Co. and Ephantus Mwangi v Duncan Mwangi. The bench endorsed the old section of the Law of Contract Act requiring written, signed agreements for dispositions of land, subject to the part-performance proviso, and found that the appellants neither took possession nor paid the full price. Finding no merit in any of the eighteen grounds of appeal, the Court dismissed the appeal with costs to the respondent on 20th December 2007, thereby affirming the judgment and decree of the High Court.

Key legal issues

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01

Enforceability of an oral contract for the sale of land under the Law of Contract Act

Holding

An oral agreement for the disposition of an interest in land is unenforceable where there is no signed written agreement, memorandum or note, and the purchaser neither took possession in part performance nor did any other act in furtherance of the contract.

Reasoning

The court endorsed the old section of the Law of Contract Act as reproduced by the learned Commissioner. There was no dispute that no written agreement existed, the appellants did not take possession of the suit premises, and they did not pay the full purchase price. Possession was in fact a disputed precondition on which the parties were not ad idem, so the proviso on part performance could not assist the appellants.

p. 4
02

Approach of a first appellate court to findings of fact

Holding

A first appellate court must re-evaluate the evidence and draw its own conclusions, but will not normally interfere with a trial court's findings of fact unless they rest on no evidence, a misapprehension of the evidence, or a demonstrably wrong principle.

Reasoning

The court cited Peters v Sunday Post, Selle v Associated Motor Boat Co. and Ephantus Mwangi v Duncan Mwangi Wambugu, quoting Hancox JA. Applying that standard, the court independently assessed the evidence and was satisfied the Commissioner acted on correct principles, so the challenge to findings of fact failed on every ground.

p. 4

Legal principles established

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  • On a first appeal, the Court of Appeal must reconsider and re-evaluate the evidence and reach its own conclusions, while bearing in mind that it neither saw nor heard the witnesses, and will not interfere with findings of fact unless they are based on no evidence, a misapprehension of the evidence, or a wrong principle.
  • No suit may be brought on a contract for the disposition of an interest in land unless the agreement, or a memorandum or note of it, is in writing and signed by the party to be charged, save where the intending purchaser in part performance has taken or continued in possession and done some other act in furtherance of the contract.

Court orders

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  1. 1.The appeal is dismissed
  2. 2.Costs of the appeal awarded to the respondent
On appeal from
High Court of Kenya, Nairobi
H.C.C.C. No. 1182 of 1991
Jurisdiction invoked
First appeal to the Court of Appeal under the Appellate Jurisdiction Act (appeal from the judgment and decree of the High Court)

Key timeline

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Practical implications

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Frequently asked questions

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Later judgments citing this (7)

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Judgments in the corpus that rely on this one. Where the Court said how it treated the authority, that is shown.

Cite this brief

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Cite this brief

Caselaw, "Ratilal Gova Sumaria & 1 other v Allied Industries Limited", Case Analysis (2007). Civil Appeal 203 of 2002. Source: https://new.kenyalaw.org/akn/ke/judgment/keca/2007/501/eng@2007-12-20

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