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MEDIATION OF THE DISPUTE BETWEEN ONION COMPANY AND ONION

COOPERATIVE ON THE MATTER CONCERNING THE RIPPLE EFFECTS OF

COVID 19 THAT HAS YIELDED TO CONFLICTING INTERESTS AND ATTRACTED

DIFFERENT CONTRACTUAL INTERPRETATION

IBRAHIM ORWA - LEGAL COUNSEL, ONION COOPERATIVE

Opening statement

Good morning everyone, my name is Ibrahim Orwa, the legal counsel representing Onion
Cooperative. It is with much gratitude that I acknowledge the presence of both parties here as we

seek to find an amicable solution to the dispute at hand.

In the interest of time, I will quickly peg down to the substantive issues of this case. In this case,

my client seeks to request for a price adjustment, an extension of time in repaying and he seeks

to get into an individual arrangement with Onion Company to find a settlement that will be

mutually beneficial and also lead to the preservation of the working relationship that has existed

between Onion Company and Onion Cooperative even after the dispute is resolved.

In the unlikely circumstance that this event does not bear a fruitful outcome, I have strongly

advised my client that we have a very iron-clad contractual case to present before the court. The

gist and crux of our legal interests being; the frustration of the contract due to the supervening

event of the occurrence of Covid-19 that disrupted business transactions, increased taxes and cost

of living hence frustrating the ability of my client to keep to the letter of the contract through

inadequacy of funds. Frustration of the Contract would hence lead to a situation where the Onion

Company would suffer no compensation but we are against a win-loose situation. I have advised

my client on the importance of finding an amicable solution that ensures both parties are satisfied

with the outcome.

Two, my client is legally bound to stop performing if the contract is frustrated or rendered
impossible due to a supervening event not caused by the fault of any party.

Thirdly, if this claim is brought before the court, the costs incurred, time to settle the dispute that

will be affected through procedural technicalities and also the determinate time lag caused by

case backlogs would most definitely affect our economic situation as everyone felt the ripple

effects of Covid - 19.

However, this is not why we are assembled here today. Therefore, we hope to sit down and make

a concious mediated conflict resolution as that will be in the best interest of every party here

today. My client has not been succesful through majoring on conflicts, but through finding ways
to solve them. No man is an island, and my client understands the import of protecting his

reputation too and also preserving good working relationships. This is why, my client has set

aside all legal claims and defences in the spirit of uberrima fidei to ensure that we be able to find

the best possible settlement for the interest of both parties and still maintain our good working

relationship.

Lastly, if this mediation proceeds as planned, we would wish to seek that we continue having the

same working relationship as before and that no ones business reputation will be damaged from

the aftermath of this mediation.

(INVITE CLIENT, ONION COMPANY)

Setting our agenda, herein ( Legal Matters )

1. Frustration of the contract

Inability to perform the contract.


High cost of living, increase in local taxes

2. Bankruptcy

Alternatives to bankruptcy

Individual agreement

Extension of time

Price adjustment

Discussing the legal matters

1. Frustration of the Contract

According to the agreement, the contract was for a specific duration of time. However, there was

occurrence of a supervening event that made it impossible for my client to complete the contract

in time.

The occurence of Covid-19 was not a precedented event and it was not within the knowledge or

reasonable prediction of my client to have any know-how as to the effects that Covid-19 would

have on the letter of the performance of the contract.

This inturn lead to economic challenges for my client as he struggled to wade through the muddy

waters of increased taxes that inturn bolstered business expenses to also keeping up with the high

cost of living that came crashing down as pertaining to the effects of Covid-19.

Covid-19 was not the fault of my client. It therefore must be maintained at all times.

2. Bankruptcy
The aftermath of Covid-19 led to an increase in business expenses. The business is facing hard

financial times and it is still not willing to default in payment. This is in the spirit of good faith.

However, we still hope for the following agreements to be made.

Solution

Individual agreement

Prescribing a price adjustment that is lower than 3,000,000 shillings.

Expressly stipulating that there will be an extension of time in the repayment and also enslisting

favourable monthly instalments that do not jeopardize the ability of my client to run Onion

Cooperative.

JOY KANANU ( MR. KIPTUM ) CEO, ONION COOPERATIVE

Transitioning to Legal Counsel

It is within all of our knowledge now that this dispute arises out of the effects of Covid-19 and

interpretation of the contract as to whether it was breached or frustrated and that is why I was

accompanied by my client, Ibrahim Orwa, to advance the legal interests and therefore I will

invite him hereby to continue in his presentation.

Issues that have to be addressed

1. Price adjustment
2. Extension of time

Discussion

( KEEP ASSESING THE PROPOSALS AND GIVE ROOOM FOR THE RESPONDING

PARTY )

THINGS TO DO - JOY

1. Personal Information about yourself

2. Summary of events leading to the dispute

3. substantive issues

4. our interests

5. our needs

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