JUDGMENT OF THE COURT
B.A.T. Kenya Limited, (the appellant) wanted to buy certain fertilizer from MEA Limited (the respondent). The fertilizer the appellant wanted to purchase was N.P.K. 6:18:20 + 4MGO + 0.1% Boran. We will hereafter refer to the same simply as "the fertilizer". The appellant sought from the respondent a quotation for 2000 metric tonnes of the fertilizer. The respondent quoted the price in U.S. Dollars being 345 US.$ per tonne. Whilst so quoting the respondent said in its letter of 3rd July, 1992 to the appellant.
"As you will note we have quoted to you in U.S. Dollars although we shall expect you to pay us in Kenya shillings at the of ficial Central Bank Exchange rate that will be operating when settling the accounts. This has been necessitated by the current uncertain situation in foreign exchange rate fluctuations."
The appellant replied to the quotation of 3rd July, 1992 by its letter of 13th July, 1992. It said:
"We would like to discuss this further with you and yo…