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CAN A CONTRACT I SINGED STOP ME FROM ENTERING OTHER CONTRACTS?.

By Editor


Kipapa was approached by ‘Ka-Oil’ company to market their oil for all the motorcycles that 
were brought to his garage. They signed a contract giving Kipapa 5 million per year. A month later, ‘Ka-Oil’s rival Beta Oil also approached Kipapa and offered him 12 million per year to also use their oil in the motorcycles when he repairs motorcycles. Kipapa immediately signed this contract too and has been rubbing his hands eagerly wating for the money to be sent to his Sente Account. However, Ka-Oil has found out about it and wants Kipapa to cancel that contract. Kipapa wants to know if they have any business deciding which contracts to sign or not.


CAN KA-OIL COMPANY STOP KIPAPA FROM SIGNING ANOTHER CONTRACT WITH BETA OIL?.

Yes, the ‘Ka-Oil’ can stop (bar) Kipapa from entering contracts with other oil companies.
This is because the original contract has obligations and interests for Ka-Oil that may be compromised or lost if a similar contract is signed with someone else. In law, this is called estoppel. It means that legally someone can stop you from doing anything that is harm their 
interests that you have already undertaken to serve.
So Kipapa would be serving two opposing masters and therefore the original master can stop him serving anyone else who has similar interests while the contract is still running


#BarefootLaw

#osutayusuf

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