Law of Contract Amendment Bill 2019 Kenya
The Law of Contract Amendment Bill 2019 Kenya is a proposed legal framework that seeks to amend the existing Law of Contract Act. The bill, which is currently in its early stages of the legislative process, aims to introduce new provisions in the Law of Contract Act that will fundamentally change the way contracts are created, enforced and interpreted in Kenya.
The proposed changes are aimed at improving the legal environment for businesses in Kenya by introducing more certainty, transparency and fairness in contractual relationships. The bill also seeks to broaden the scope of contracts that can be enforced in Kenya, including electronic contracts and contracts involving international parties.
Some of the key provisions of the Law of Contract Amendment Bill 2019 Kenya include:
1. Making electronic contracts legally binding – The bill proposes to extend the definition of a contract to include electronic contracts. This means that contracts that are exchanged through electronic means, such as email, will be recognized as legally binding.
2. Introduction of good faith obligations – The bill proposes to introduce a good faith obligation in contract negotiations and performance. This means that parties to a contract will be required to act with honesty, fairness and transparency in their dealings with each other.
3. Changes to the rules of interpretation – The bill proposes to change the rules of interpretation of contracts. This includes the introduction of the contra proferentem rule, which means that any ambiguity in a contract will be interpreted against the party that drafted the contract.
4. Changes to the rules of termination – The bill proposes to introduce new rules governing the termination of contracts, including the requirement to give notice and the right to claim compensation for breach of contract.
The Law of Contract Amendment Bill 2019 Kenya is expected to have a significant impact on businesses operating in Kenya. The bill is designed to improve the legal environment for businesses by introducing more certainty, transparency and fairness in contractual relationships. However, the bill is still in its early stages, and it remains to be seen how it will be received by the Kenyan business community.
In conclusion, the Law of Contract Amendment Bill 2019 Kenya represents a significant step forward in the development of contract law in Kenya. The bill seeks to modernize the legal framework for contracts by introducing new provisions that will improve the legal environment for businesses. If passed into law, the bill will have far-reaching implications for businesses operating in Kenya and will be a crucial step towards improving the country’s business environment.