Total Kenya was ordered to pay a contractor more than 600,000 shillings for work carried out at one of its service stations, which the oil company refused to pay, arguing that it had not sanctioned the work.
The Court of Appeal noted that even though the additional work was delivered orally, the oil company was aware of it and never raised any objections.
The appeals court judges added that Collins Kipkorir gave the instructions for the additional work of excavation, laying of pipe sleeves, storm water drainage, manholes, mild steel covers and bollards. forecourt, and had supervised the work on behalf of Total.
“We find that the absence of a local purchase order issued by the Appellant in no way nullified the oral contract between the Appellant and the Respondent,” Judges Mohammed Warsame, Jamila Mohammed and Asike said. Makhandia.
Pasacon General Construction and Electrical Services Limited took legal action in 2016, arguing that Total Kenya hired the company in July 2010 for its Jomo Kenyatta service station.
Total allegedly refused to settle the claim, arguing that there was no valid contract between the parties because a local purchase order (LPO) had to be issued.
Pasacon General Contractors argued that the additional work had been delivered orally by Total’s agent and therefore enforceable.
The case was dismissed by the trial judge, stating that since there was no valid LPO, no payment should be made. The contractor appealed and High Court Judge David Majanja overturned the decision, saying an agreement for such works is not required by law to be in writing.