ZINGO INVESTMENTS LIMITED V. KENYA SYNTANS & CHEMICALS LIMITED

JUDGMENT OF THE COURT

A brief background of the events leading to this second appeal is that the parties herein had an oral agreement where the appellant would order chemicals via phone or through a Local Purchase Order from the respondent. The norm was that the appellant usually paid the respondent for the goods once they were delivered. As per the terms of their agreement, the invoices issued to the appellant contained a clause to the effect that in default of settling the debt within 30 days from the date of delivery, the appellant would incur an interest rate of 2% per month on the outstanding debt until payment in full. By 26th June 2008, it was the respondent’s claim that the outstanding debt owed to it by the appellant was Kshs. 2,148,293. The respondent filed suit on the basis that the appellant had breached their agreement and had failed and/or refused to settle the invoices for the goods supplied to it by the appellant.

It was brought to the attention of the court that the res…