In Kenya, contract law is governed by the Contract Act (Cap 23) and various court decisions on contract-related issues. Contract law provides the legal framework for business transactions and relationships by establishing the enforceability and validity of agreements between parties.

Contract case law in Kenya plays a crucial role in shaping the legal landscape and ensuring fairness in business transactions. The following are some of the notable contract cases that have had a significant impact on contract law in Kenya:

1. The case of J.A. Atambo & Company v. Kenya Commercial Bank Limited (1985) eKLR

This case involved a dispute between a law firm and a bank over the validity of a cheque. The bank had failed to honour a cheque issued by the law firm, claiming that it was post-dated. The court held that the bank was in breach of contract and awarded damages to the law firm. The case has set a precedent for banks to honour cheques even if they are post-dated.

2. The case of Roko Construction Ltd v. Attorney General (2011) eKLR

This case involved a dispute between a construction company and the government over a contract for the construction of a road. The government had terminated the contract citing various breaches of the agreement by the construction company. The court held that the termination was unlawful and awarded damages to the construction company. The case has set a precedent for the proper termination of contracts by government entities.

3. The case of Kenya Commercial Bank Ltd v. Kenya Planters Co-Operative Union Ltd (1990) eKLR

This case involved a dispute between a bank and a co-operative union over the validity of a guarantee. The bank had granted a loan to a company based on a guarantee from the co-operative union. The company defaulted on the loan, and the bank sought to recover the debt from the union. The court held that the guarantee was invalid as it had not been properly executed. The case has set a precedent for the proper execution of guarantees.

In conclusion, contract case law in Kenya provides a framework for resolving disputes arising from business transactions and relationships. These cases have set precedents that have helped to ensure fairness, transparency, and enforceability in contract law. As such, it is crucial for businesses to understand and comply with the legal requirements of contracts to avoid legal disputes.