JUDGMENT OF SHAH, J.A
Pentax Properties Limited (Pentax) were to put up 330 houses on plot L.R. No. 209/8525, off Mbagathi Road, Nairobi. the houses were put up on this parcel of land and the estate which arose out of it is known as Ngumo Estate – Phase 1.
The respondents, who were two brothers, carried on business of building contractors at the material time under the name of Sanghani Builders. I will refer to them hereafter as “Sanghanis”. The contract sum for building the said 330 houses was apparently quotes at K. Shs. 78,231,181.69 by the Sanghanis as per revised summary shown in the contract to be entered into between Pentax and Sanghanis. The tender by Sanghanis was accepted but Sanghanis were not prepared to sign the contract unless they had a guarantee for payment.
Mr. Devjibhai Bhimji Sanghani (P.W.1) told the superior court (Shields, J.) that Sanghanis went to the office of Mr. Nyammo, the chairman of Pentax (Mr. Nyammo) to discuss the guarantee for payment, on 5th July 1978. …