• June 2nd, 2012
  • Posted by athanne

Contracts in Kenya

insp 2 300x250 Contracts in Kenya

Contracts in Kenya are the foundation of modern business. In the business, promises are made quite often and the law of contract lays down legal rules relating promises.

Contracts in Kenya can be defined as a legally binding agreement between two people or more parties by which rights are acquired by one or more to act or for balance of the others.

Therefore, the law of Contracts in Kenya imposes an obligation on every person to honor his/her legally enforceable process failure to which renders him to compensate the injured party. This is intended to promote commercial relationship.

 Contracts in KenyaEssential Elements of Contracts in Kenya

Offer and Acceptance

One essential element of Contracts in Kenya is that there must be an offer and acceptance

Both the offer and acceptance must be lawful. The terms of the offer must be definite and acceptance is must be absolute, unconditional, in the prescribed mode and it must be communicated to the offered.

There must be Intention to the Offered.

Another essential element of Contracts in Kenya is that there must be an intention among the parties that the agreement should be attached by legal considerations.

There must be Lawful Consideration

The third essential element of Contracts in Kenya is there must be a consideration being the price paid by the party for the promise of the other.

Capacity of the Parties

Another essential element of Contracts in Kenya is that the parties must be competent to contract. They should be of a majority age, should not be disqualified by law from contracting and should be of sound mind.

Free Consent

Free consent is another essential element of Contracts in Kenya. There should be an agreement of the some thing in the some sense. And by the free we mean there is no coercion, on undue influence, on misrepresentation, no found there is no mistake.

Object should be Lawful

The last but not least essential element of Contracts in Kenya is that the object should lawful. The object for which the agreement has been entered into should not be illegal, immoral, opposed to public policy or implying injury to the person or property of the other.

Possibility of Performance

The last essential element of Contracts in Kenya is possibility of performance. If an act is impossible in itself, physically or legally then it can not be enforced by law.

Types of Contracts in Kenya

The different types of Contracts in Kenya include;

  • Express/Implied Contracts,
  • Unilateral/Bilateral Contracts,
  • Valid, Void and Voidable Contracts,
  • Specialty/Simple Contracts,
  • Illegal Contracts
  • Ubeirimae Fidae
  • Contract of Record
  • Executed Contracts
  • Executory Contracts
  • Quasi Contracts


Express/Implied Contracts

Express Contracts in Kenya is whereby the parties specifically agree about the nature and term of their relationship.

Implied Contracts in Kenya is where there is no pacific agreement. The conduct of the party as well as surrounding circumstances must be taken in order to ascertain where or a contract exists.

Unilateral/Bilateral Contracts

These Contracts in Kenya differ in that unilateral contract is where only one party is bound while in bilateral contract both parties are bound.

Valid Void and Voidable Contracts

Valid Contracts in Kenya is an agreement enforceable by law. Void contracts are an agreement which is not binding or enforceable by law Voidable Contracts in Kenya are enforced by law at the option of one of the parties and this may be done where the consent of the contract was attained by coercion under influence, misinterpretation fraud or it involves a minor.

Specialty/Simple Contracts

Specialty Contracts in Kenya are also known as contracts under seal. It is an instrument that is written, signed, sealed and delivered by the party bound to it by the beneficiary e.g. bill of exchange.

Simple Contracts in Kenya is an agreement expressed or implied which given rise to legal obligation it may be written or oral or both.

Illegal Contracts

Illegal Contracts in Kenya are those that are prohibited by law and are not within the provisions of the law and contravene the provision of the law and are contrary to public policy. Illegal contracts are void thus can not be enforced.

Ubeirimae Fidae

These are Contracts in Kenya whereby only one of the parties has the knowledge of materials in which he/she is under duty to disclose e.g. sale of a cow.

Contract of Record

This constitute of a twist order, which may be in form of the judgment of the court or reconnaissance.

Executed Contracts

This is simply a contract where both parties to a contract have completely performed their share of obligation.

Executory Contracts

Executory Contracts in Kenya occur where both parties to a contract are yet to perfume their share of obligations or those remains something to be done under the on both sides.

Quasi Contracts

These Contracts in Kenya  do not arise by  agreement express or implied between the parties but are recognized by the law under certain circumstances e.g. social obligation that is recognizable by law e.g. once you find a stolen good you find the owner since in law once should not be found in possession of stolen goods.

Further information can be found in Business Training in Kenya

Conclusion on Contracts in Kenya

All the information provided above is sufficient to enable business people to understand about Contracts in Kenya

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Posted in : Law