From the case study below,advise Maxwell.

Maxwell and Abdirazak entered into a contract in which Maxwell was to sell a lorry to Abdirazak for sh.1500,000.
Unknown to the parties, the lorry which had been parked at Shah’s garage had been burnt down that morning following a fire outbreak at the garage.
Abdirazak had paid Maxwell sh.300,000 as deposit.
He now intends to sue Maxwell for breach of contract.

Answers

Held
The problem is based on frustration of contract.
Destruction of the lorry frustrated the contract between Maxwell and Abdirazak.
Neither of them was blameworthy.
However, the deposit of sh.300,000 paid by Abdirazak is recoverable.
No cause of action for there was no breach of contract.
My advice is based on the provisions of the Law Reforms(frustrated contracts) Act 1943.
Under the Act,when a contract is frustrated,any money paid is recoverable and money payable ceases to be payable.

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maurice.mutuku answered the question on December 30, 2016 at 14:55

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