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(1992) JELR 98365 (CA)

Court of Appeal  •  Civil Appeal 69 of 1991  •  10 Jul 1992  •  Kenya

Richard Otieno Kwach, Joseph Raymond Otieno Masime, John Mwangi Gachuhi



Kwach JA. Esso Kenya Limited (the appellant) is the registered owner of a petrol station on Plot LR Nos 15 and 16, Kakamega in Western Province. Under an arrangement dated 4th January 1989 entered into between the appellant and Mark Makwata Okiya (the respondent), the appellant granted the respondent an exclusive license to sell the appellant’s products at the service station and for that purpose only. The agreement was for a term of six months renewable. The respondent paid the appellant an operator’s fee of Kshs 2000/- per month and an additional fee calculated at the rate of 2 cents per litre of motor fuels and kerosene purchased by the respondent for sale at the service station. The respondent was to purchase exclusively from the appellant at the current listed or applicable prices all supplies of petroleum products, which might be required for the purpose of the agreement.

Among matters agreed to between the parties to the agreement was that the agreement could be terminat…

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