The Court of Appeal has warned parties in contract disputes against taking conflicting positions in court, saying a person cannot deny that an agreement exists and later rely on the same contract to accuse the other party of breaching it.

🇰🇪 Breaking It Down

This ruling could affect Kenyans involved in vehicle purchases, asset financing, business deals and other transactions where written agreements determine the responsibilities of each party.

The decision arose from a dispute over the purchase of a lorry valued at Ksh4 million. The buyer had paid Ksh2.1 million when the vehicle developed serious mechanical problems shortly after the purchase.

According to the court case obtained by Kenyans.co.ke , the buyer informed the seller about the defects through text messages and sought repairs. However, the vehicle remained unusable for years, while instalment payments fell into default.

📌 What You Need to Know

The seller later argued that the buyer had breached the agreement, including by dealing with the vehicle contrary to its terms. However, the seller had earlier taken the position that there was no agreement between the two parties.

The Court of Appeal found that the seller could not first deny the existence of the agreement and later rely on the same document to claim that the buyer had breached one of its clauses.

Additionally, the court upheld findings by the lower courts that the buyer had informed the seller about the mechanical defects and that the seller had failed to prove the alleged breach.

Further, the court rejected an attempt to challenge cellphone evidence at the second appeal stage because the evidence had not been disputed when it was introduced during the trial.

The decision offers a practical lesson for ordinary Kenyans involved in major transactions. Contracts, receipts, bank and mobile-money records, messages, emails and inspection reports can become important evidence when a dispute arises.

It also highlights the importance of carefully reading agreements before signing them. Whether buying a vehicle, taking asset financing or entering a business deal, the terms can later determine the obligations of each party.

📰 Source: Kenyans.co.ke