JUDGMENT OF THE COURT
The respondent who was the plaintiff in the suit before the High Court, sued the appellant as disclosed in its Further Amended Plaint for special damages and general damages arising out of the fraudulent act on the part of the appellant, and for general damages for breach of contract by the appellant.
The background to the suit is as follows.
The respondent on 27th June, 1982, borrowed from the appellant Kshs.1,275,000/= to build five maisonettes, upon the undertaking given by the Kenya National Assurance Co. Ltd (KNA) of 28th May, 1982, that it would repay the loan to the appellant on demand by it and after the completion of the building of the maisonettes. In consideration of this undertaking, the respondent, inter alia, mortgaged the maisonettes to KNA. The offer of advance by the appellant of the money involved which is dated 27th June, 1982, and which was produced at the hearing was not signed by the respondent.
On 13th September, 1983, the respondent mortgaged …