Question
Kamau carries on the business of sugar distribution in Kenya.By an agreement made between him and So sweet sugar Factory, on 12th March 2017 ,
Kamau carries on the business of sugar
distribution in Kenya.By an agreement
made between him and
So sweet sugar Factory, on 12th March
2017 , he agreed to purchase from the
factory10,000,000 kgsof
sugar packed in 1000kgand 500 kg
bags at the price of Kshs. 319,000,000/=.
Kamau paid half of the
purchase price.In pursuance of the said
agreement So Sweet supplied Kamau with
a total of 2,103,000kgs
of sugar at the cost of Kshs. 67,967,750/=.
Subsequently and by a letter dated 13th
April 2017 So Sweet,
informed Kamau that the Minister of Agriculture had revised the price of Sugar
from state owned millers
upwards and therefore Kamau was
supposed to top up some amount to
meet the new price. Kamau
visited So Sweet warehouses severally
and sought to access the remaining
consignment but was denied
access to it. Two weeks letter So Sweet
repudiated the contract and refunded
balance of the price to
Kamau. As a result of this Kamau has
suffered loss in his business and has since
shut down his distribution
network. He has sued So Sweet for
breach of contract. The matter has come
to you to advice So Sweet Sugar Factory. During the meeting the
following facts are presented in court
1.That Kamau had been purchasing
Sugar from So Sweet for ten years.
2.That Kamau would pay half of the
purchase price at the time of making the
order and the final
payment would be done after collection
of the last consignment.
3.That once an order had been made So
Sweet would store the order amount in
a warehouse on
their premises andKamau would pay a
monthly charge for the warehouse until
he finished
collecting the sugar
well-reasoned Advisory
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started