Understanding the different types of legal agreements helps you protect your money and avoid disputes.
This guide explains the main types of legal agreements in Kenya in simple terms so you know what is enforceable and what is not.
A legal agreement is an arrangement between two or more people or companies where they agree to do something, provide something, transfer something, or stop doing something.
It can create rights and duties that the law may enforce.
Agreements in Kenya can be made orally, by handshake or conduct, in writing, electronically, or through a formal deed.
An agreement is not automatically useless just because it is not written down.
Enforceability depends on:
- The subject matter
- Whether the parties intended to create legal obligations
- Whether the main terms are clear
- Whether something of value was exchanged
- Whether the law requires a specific form.
One important exception applies to land. Agreements for the sale or transfer of an interest in land are subject to strict statutory rules.
This is one of the most common areas where people get into trouble.
If you own land or plan to invest, pay special attention to the sections on written requirements and title deeds.
At Chepchieng and Company Advocates, we regularly help clients understand these rules. As trusted lawyers in Kenya, we see many cases where clear advice early on would have prevented loss.
What Is a Legal Agreement in Kenya?
A legal agreement is a mutual understanding where parties agree on specific actions. Examples include selling goods, paying rent, paying a salary, repaying a loan, or selling land.
There is a difference between an agreement and a contract. An agreement is a mutual understanding.
A contract is an agreement that the law recognizes as enforceable. Not every promise becomes a contract.
The terms must usually be clear enough, and the legal requirements for that type of deal must be met.
Kenya recognizes several types of legal agreements. Knowing the differences helps landowners, investors, and ordinary people make better decisions.
1. Verbal Agreements in Kenya
A verbal agreement (also called an oral agreement) is made through spoken words. There is no signed paper.
Examples of verbal agreements include:
- Agreeing to pay someone for casual work
- Buying goods from a supplier at an agreed price
- Fixing the price of a service
- Promising to repay a personal loan
- Renting movable equipment for a short period.
Are verbal agreements legally binding?
In many cases, yes. A verbal contract in Kenya can create legal obligations if the parties intended to be bound and the basic elements of a contract are present.
These elements are offer, acceptance, consideration (something of value exchanged), intention to create legal relations, capacity of the parties, a lawful purpose, and certainty of terms.
Courts in Kenya have confirmed that oral contracts can be enforceable when the following elements are present.
The real problem is proof. People often remember different prices, deadlines, or quality standards.
You can prove a verbal agreement with:
- Text messages
- WhatsApp chats
- Emails
- Payment records
- Invoices
- Receipts
- Witness statements
- Delivery notes
- Past dealings
- Conduct that shows the parties acted on the agreement.
- Audio recordings may also help if they follow privacy and evidence rules.
The Evidence Act limits the use of oral statements to contradict a written document once its terms are proved, but exceptions exist.
The risks of verbal agreements are high.
- Parties may remember terms differently.
- Important details may never have been discussed.
- A witness may become unavailable.
- Messages may be deleted.
- What started as a casual talk may be treated as a firm deal by only one side.
- Court cases become more expensive because the judge must first decide what was actually agreed.
Put a verbal agreement into writing when the deal involves:
- A large sum of money
- Land or buildings
- Long-term obligations
- Business ownership
- Employment
- Loans
- Guarantees
- Confidential information
- Intellectual property
- Any situation with a high chance of disagreement.
A verbal contract in Kenya works for simple everyday matters, but for anything important, you need stronger protection.
2. Handshake Agreements in Kenya
A handshake agreement is an informal deal reached through spoken words and often sealed with a handshake.
The handshake itself is not the contract. It is only a sign that the parties may have reached an understanding.
The legal question remains whether clear terms were agreed upon and whether the parties intended to create legal obligations.
Handshake agreements in Kenya can be enforceable if the underlying agreement meets the normal requirements of a contract and the law does not demand writing.
Examples of handshake agreements in Kenya include:
- Short-term services
- Purchase of ordinary goods
- Repayment of a simple debt
- Basic business arrangement.
The main difficulty is:
- Proving who the parties were
- What exactly was agreed
- The price
- The time for performance
- Whether the deal was meant to be legally binding.
Handshake agreements rely heavily on memory and trust. Different interpretations arise easily. One party may later claim that talks were still incomplete.
Proving the deal in court can be hard and costly.
To reduce risk, send a short written confirmation immediately after the handshake.
For example:
“This message confirms our discussion today. You agreed to provide [service or goods] for Ksh [amount], to be delivered by [date]. Payment will be made [terms]. Please confirm that this summary is correct.” Keep the reply.
Handshake agreements in Kenya remain common in daily life, yet they carry clear risks for landowners and investors.
3. Implied Agreements Made Through Conduct
An implied agreement is created by the parties’ actions, the circumstances, or their previous dealings rather than by clearly spoken or written words.
Examples include:
- A passenger boarding a matatu and paying the fare
- A customer ordering and receiving goods
- A person receiving regular services and paying according to an established pattern
- A tenant occupying premises while the landlord accepts rent.
Express terms are those that the parties state directly.
Implied terms are those that the court or the situation fills in from conduct, custom, previous dealings, or the nature of the transaction.
The risk is uncertainty about the full scope of the arrangement. Past custom may not apply to a new deal.
Conduct may show that some agreement existed, but not establish every important term. The court then has to decide what the parties intended.
4. Written Agreements in Kenya
A written agreement records the parties’ terms in a document signed by the relevant parties.
Written agreements provide:
- Clear evidence of what was intended
- Define rights and duties
- Set payment and performance timelines
- Record what happens if someone defaults
- Give a solid basis for enforcement or dispute resolution.
Common written agreements include:
- Land sale agreements
- Lease agreements
- Employment contracts
- Service agreements
- Loan agreements
- Partnership agreements
- Shareholders’ agreements
- Supply agreements
- Settlement agreements
- Confidentiality agreements
- Agency agreements.
A good written agreement should contain:
- The full names and contact details of the parties
- Identification or registration numbers where needed
- The purpose of the agreement
- Each party’s obligations
- Payment terms
- Timelines, any conditions that must be met first
- Representations and warranties
- What happens in a breach
- How the agreement can end
- How disputes will be resolved
- The governing law
- Signatures (and witnesses where required).
Parties should sign the final version, keep copies, and ensure witnesses sign when the law or good practice requires it. Never sign blank pages or incomplete documents.
Written agreements in Kenya give stronger protection than verbal or handshake deals. Many of the best lawyers in Kenya recommend them for any transaction that involves significant value or ongoing obligations.
5. Electronic Agreements in Kenya
An electronic agreement is formed or recorded through electronic means, such as:
- Online forms
- E-signature platforms
- Click-to-accept terms
- WhatsApp or other messaging apps
- Electronic invoices or purchase orders.
Kenyan law recognizes electronic communications as admissible evidence of offers, acceptances, and contractual terms.
The Kenya Information and Communications Act supports the validity of electronic records and advanced electronic signatures in many situations.
Courts have also accepted WhatsApp and SMS exchanges as evidence of binding agreements when the essential elements of a contract are present.
Important issues include:
- Authenticity of the message
- Identity of the sender
- Whether the parties intended to be bound
- Whether the terms were clear and accessible
- Whether the record was altered
- Whether the particular transaction requires a special form.
Preserve original emails, complete message threads, attachments, payment confirmations, dates and times, electronic signatures, and platform records.
Electronic agreements form one of the modern types of legal agreements that many businesses now use daily.
6. Agreements Executed as Deeds
A deed is a formal legal instrument used for certain transfers, promises, or obligations.
Examples include:
- A deed of gift
- A deed of assignment
- A deed of indemnity
- A deed of guarantee
- A deed of variation
- A deed of trust.
A deed may have stricter execution requirements than an ordinary agreement. It can be useful where consideration is absent or where a formal instrument is appropriate.
Validity depends on proper signing, witnessing, delivery, and other legal requirements. Simply calling a document a “deed” does not make it valid.
When Must an Agreement Be in Writing?
Not every type of legal agreement can safely remain verbal or based on a handshake.
For land, section 3(3) of the Law of Contract Act is clear.
No suit can be brought on a contract for the disposition of an interest in land unless:
- The contract is in writing
- Signed by all the parties
- The signature of each party is attested by a witness who was present when that party signed.
This covers the sale of land, transfer of land, long-term leases, and other dispositions of an interest in land.
Exceptions exist for public auctions by licensed auctioneers and for resulting, implied, or constructive trusts.
Other laws may impose writing requirements for guarantees, certain insurance contracts, and other specific transactions.
A practical rule is this: if the transaction is valuable, long-term, complex, or connected to land, use a properly drafted written agreement.
This is one of the most important points about the different types of legal agreements in Kenya.
Genuine Title Deeds in Kenya
A title deed or certificate of title is evidence of a registered interest in land. It is not the same as a land sale agreement. The sale agreement records the contract between buyer and seller. The title document shows registered ownership or interest.
When examining a document presented as a genuine title deed in Kenya, check the format, official wording, title, or parcel number. Check for signs of alteration or tampering.
These visual checks are only preliminary. Appearance alone cannot prove authenticity.
To verify a title deed properly: conduct an independent official search at the relevant land registry or through authorized digital platforms such as ArdhiSasa.
Knowing how to verify a title deed in Kenya protects buyers and investors from serious loss.
Fake Title Deeds in Kenya
A fake title deed may be a completely forged document, an altered genuine title, a document with false ownership or parcel details, a document issued without authority, or a document linked to a non-existent property.
Warning signs include spelling errors, unclear printing, inconsistent fonts or ink, alterations and erasures, mismatched names or parcel numbers, missing registry details, suspicious stamps or signatures, pressure to pay quickly, refusal to allow an independent search, and a registry search that produces different information or no matching record.
If you suspect fraud, stop further payments and signing, preserve all evidence, conduct an official search, consult an advocate immediately, report the matter to the relevant authorities, and contact your bank or payment provider if money has already been sent.
Understanding the difference between a genuine title deed in Kenya and a fake one is essential for every landowner and investor.
Practical Comparison of Types of Legal Agreements
| Type of agreement | How it is made | Can it be enforceable? | Main risk |
| Verbal agreement | Spoken words | Yes, in appropriate circumstances | Difficulty proving the terms |
| Handshake agreement | Oral understanding confirmed informally | Yes, depending on the terms and subject matter | Dispute over what was agreed |
| Implied agreement | Conduct or circumstances | Yes, where the conduct establishes an agreement | Uncertainty about the scope |
| Written agreement | Signed document | Generally easier to prove | Poor drafting or failure to sign properly |
| Electronic agreement | Email, message, online acceptance or e-signature | Often, subject to applicable requirements | Authenticity and incomplete records |
| Deed | Formal legal instrument | Yes, if properly executed | Failure to meet formalities |
| Land sale agreement | Written and signed land contract meeting statutory rules | Subject to statutory requirements | Invalidity, fraud or failure to register the transfer |
How to Protect Yourself Before Signing an Agreement
- Document important transactions in writing.
- Verify the identity and authority of the other party.
- For land, always conduct an independent official search and obtain proper legal advice before paying significant money or signing.
- Keep copies of every relevant message, payment, and document.
- If the deal is complex or high-value, speak to a professional early.
Conclusion
Not all types of legal agreements are created the same way. Verbal, handshake, and implied agreements may be enforceable in the right circumstances, but they are usually harder to prove.
Written and electronic agreements provide stronger evidence of the parties’ terms. Land transactions require particular care because a handshake or verbal promise is generally not enough for a legally enforceable disposition of an interest in land.
A title deed is not a substitute for a proper sale agreement, and its physical appearance does not conclusively prove authenticity. Always verify. Document important deals and seek legal advice before signing or paying large sums.
Understanding the types of legal agreements available in Kenya helps you make safer decisions every day.
Frequently Asked Questions
Are oral contracts legally binding in Kenya?
Yes, in many situations, provided the essential elements of a contract are present and the law does not require writing for that particular type of deal. Proof is often the main challenge.
Can a handshake agreement be enforced in court?
It can be enforced if the underlying agreement meets the requirements of a valid contract and writing is not required by law. Evidence of the terms remains critical.
Must every land sale agreement be witnessed?
Under section 3(3) of the Law of Contract Act, the signature of each party must be attested by a witness who was present when that party signed.
How can I check if a title deed is genuine?
Conduct an independent official search, compare the results with the document, verify the seller’s identity and authority, and obtain professional advice. Visual inspection alone is not enough.
Is a WhatsApp conversation enough to form a contract?
Courts have accepted message exchanges as evidence of a binding agreement when offer, acceptance, consideration, and intention are clear. Still, written confirmation is safer.
When should I consult a lawyer about an agreement?
Consult a lawyer before signing or paying significant money, especially for land, long-term deals, loans, guarantees, or any transaction that feels complex or high-risk. An expert lawyer in Kenya can help you avoid costly mistakes.
