John Okuna Ogango v Dolores N. Collins & another [2017] KEELC 1843 (KLR)
- Court
- Environment & Land Court
- Case number
- 1843
- Citation
- [2017] KEELC 1843 (KLR)
- Decided
- 18 September 2017
The Plaintiff is entitled to liquidated damages of 10% of the purchase price and the 2nd Defendant is directed to transfer the property to the Plaintiff by way of a long lease and furnish the completion documents within 30 days of the judgment.
Facts
The Plaintiff entered into a sale agreement with the 1st Defendant for the purchase of a townhouse. The 1st Defendant agreed to sell the property to the Plaintiff for Kshs. 52 Million. The Plaintiff paid a deposit of Kshs. 15,320,000 to the 2nd Defendant, who was the registered proprietor of the property. The 1st Defendant transferred the property to the 2nd Defendant for construction, and the 2nd Defendant gave an irrevocable undertaking to transfer the property to the Plaintiff. The Plaintiff paid further sums to the 2nd Defendant and received the Certificate of Practical Completion.
Issues
- Whether the Plaintiff was entitled to rescind the sale agreement
- Whether the Plaintiff was entitled to liquidated damages
- Whether the 2nd Defendant was in breach of its irrevocable undertaking
Reasoning
The Plaintiff was not entitled to rescind the sale agreement as she did not provide the completion documents as required by the agreement. The 2nd Defendant was in breach of its irrevocable undertaking.
Outcome
The Plaintiff wins the case and is awarded liquidated damages and the 2nd Defendant is ordered to transfer the property.
Orders
- The 2nd Defendant to transfer the property to the Plaintiff by way of a long lease and furnish the completion documents within 30 days of the judgment.
- The Plaintiff to pay the balance of the purchase price to the 1st Defendant within three days of receiving the lease and all the completion documents from the 2nd Defendant.
- The Plaintiff to bear the costs of the suit.
Remedies
- Liquidated damages of 10% of the purchase price
- Transfer of the property by way of a long lease and furnishing of completion documents
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