JUDGMENT OF THE COURT
This is a second appeal from the judgment of the High Court at Nairobi (Sergon, J.) dated 16th February 2018 by which the leaned judge upheld the decision of the Chief Magistrate’s Court at Nairobi, dismissing Carosa Investments Ltd’s (the appellant) claim against Kobil Petroleum Ltd (the respondent). A second appeal is limited to issues of law only. (See Kenya Breweries Ltd v. Godfrey Odoyo [2010] eKLR). However, that had not stopped the appellant from inviting us to delve into matters of fact. The memorandum of appeal asserts in all the grounds of appeal that “the learned judge erred in both fact and law”, which it ought not to do. Be that as it may, we shall confine ourselves to the issues of law only, as we are duty bound to do.
Before the trial court, the appellant pleaded that it entered into a petrol station dealership agreement with the respondent on 25th October 2004 pursuant to which it paid to the respondent a security deposit of Kshs 2 million, on the …