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Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings) to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed...

      

Simiyu Tito requested Wanyonyi Peter to lend him Shs. 5,000 (five thousand shillings)
to be repaid within a month. Wanyonyi Peter enquired what Simiyu Tito needed the
money for and Simiyu Tito replied that he needed Shs. 2,000 (two thousand shillings) to
buy food for his children and Shs. 3,000 (three thousand shillings) to bribe someone
who could fix for him a person who had been bothering him. Wanyonyi Peter lent
Simiyu Tito the money. A month later, when Wanyonyi Peter asked Simiyu Tito for
repayment of the Shs. 5,000 (five thousand shillings), Simiyu Tito refused to do so.

Explain the legal principles applicable in this case and advise Wanyonyi Peter.

  

Answers


Maurice
This problem is based on borrowing and illegality. The borrowing by Simiyu Tito is on the
face of it an ordinary contract between a lender and a borrower. However the contract is
tainted with illegality in that part of the money borrowed is being used to promote
corruption as well as facilitate the commission of a crime since Wanyonyi Peter is aware of
the illegality the borrowing is unenforceable. This is because illegality renders a contract
unenforceable and the operative principle in such a case is that gains and losses remain
where they have fallen. Though part of the loan was used for a lawful purpose the entire
contract is tainted with illegality.

My advise to Wanyonyi Peter is that he cannot recover the amount borrowed from Simiyu
Tito as he has no enforceable rights.
maurice.mutuku answered the question on May 1, 2018 at 05:59


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