Court Sets Rules on When Land Buyers Can Force Sellers to Complete Deals

Jukwaa

🇰🇪 Breaking It Down

The decision arose from a dispute in which a land buyer sought specific performance, an equitable remedy that allows a court to compel a party to fulfil the terms of a contract rather than simply award damages.

Having paid only part of the agreed purchase price, the purchaser later sought orders compelling completion of the land transaction.

The court also considered the purchaser's attempt to subdivide and sell portions of the property before acquiring title, finding that the conduct amounted to a breach of the agreement.

📌 What You Need to Know

The judges held that specific performance is not granted as a matter of right and that an applicant must demonstrate that they have performed, or are ready and willing to perform, the essential terms of the agreement.

The Court of Appeal further found that both parties breached their obligations, with the purchaser failing to pay the outstanding balance within the agreed period and the seller failing to provide certain completion documents.

In addition, the court held that where both sides have breached a contract, one party cannot simply demand that the other complete the transaction while ignoring its own failures.

The decision also addressed lis pendens , a legal principle that generally prevents parties from dealing with disputed property in a way that could undermine ongoing court proceedings.

In the ruling, the judges clarified that the protection offered by lis pendens depends on the outcome of the underlying dispute, meaning a party that ultimately loses its case cannot rely on the doctrine to invalidate dealings with the property during the litigation.

The court also emphasised that financial recovery is based on what is established through evidence rather than simply the amount stated in pleadings, with an admission by a witness capable of proving that a particular sum had been received.

📰 Source: Kenyans.co.ke

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