JUDGMENT OF THE COURT
At the time of filing Civil Suit Number 286 of 2001, in Milimani Commercial Courts, Nairobi, a precursor to this appeal, Kamahuha Limited “the respondent”, was a beer distributor for Kenya Breweries Limited within Githurai and Ruiru areas, its designated distributorship zone. Uncle Sam’s Githurai limited “the 2nd appellant” then operated a bar at Githurai that stocked Kenya Breweries products supplied by the respondent as aforesaid. Samuel Mureithi Murioki “the 1st appellant” was a director and shareholder of the 2nd appellant. The relationship between the 2nd appellant and the respondent aforesaid had gone on for a while such that by the year 1995, the 2nd appellant owed the respondent a sum of Kshs. 1,000,000/- on account of Kenya Breweries Products sold and supplied to it but not paid for.
The 1st appellant as a director and shareholder of the 2nd appellant approached the respondent to negotiate the settlement of the aforesaid amount. He first proposed that land…