The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
This case involved a memorandum of understanding that was departed from orally by both parties. This case illustrates how an oral variation leaves the written contract enforceable.
The court considered three issues, whether there was a valid contract, whether the counter-defendant had breached the contract, and if the counterclaimant is entitled to the remedies available.
The court held that the burden of proving misrepresentation rests on the party alleging it. Secondly, a breach of a contract arises when a party to a contract fails to meet its contractual obligation. However, where a party waives its rights, it cannot claim damages for breach on the same contract. Lastly, the court held that a party must take all reasonable steps to mitigate loss following a breach.
The court was satisfied that there was no proof of misrepresentation on the part of the counterclaimant. The court found that though there was breach of the contract by the counter-defendant, the counter-claimant had waived its rights and could not claim damages for breach on the same contract. The court was satisfied that the counter-claimant did not mitigate its loss and was therefore not entitled to any special damages.
The plaintiff filed an action against the defendant for breach of contract, special damages, general damages, interest and costs of the suit. The two issues were whether there was a legally binding contract for decorating services between the plaintiff and the defendant and whether the plaintiff is entitled to the remedies claimed.
It was submitted that under s 55 of the Public Procurement and Disposal of Public Assets Act 2003 (PPDA or the act) all public procurement has to be carried out in accordance with the rules set out in the act and regulations and guidelines made under the act. The court held that there was non-compliance with the PPDA regulations on procurement of services.
The court stated that the act was established to ensure the application of fair, competitive, transparent, non-discriminatory and value for money procurement and disposal standards and practices. Although there was non-compliance with established procedures as set out above, the contracts committee subsequently agreed with the methodology chosen albeit after the event. They ratified the process.
The court went on to decide that on the first issue thereof of whether there was a legally binding contract for decorating services between the plaintiff and the defendant, that the permanent secretary upon clearance by the Contracts Committee was under obligation to retrospectively regularise the procurement of the services of the plaintiff representing a consortium of companies which carried out decorations. The failure to regularise the procurement of the services of the plaintiff worked injustice because the plaintiffs remained unpaid for services procured and which had been cleared by the Contracts Committee.
The plaintiff sought relief from the court for alleged breach of contract said to have been committed by the defendant. The alleged breach was on the basis that the defendant had renewed a contract the parties had entered into and breached the contract by awarding a tender to another bidder.
In considering whether there was a breach of contract, the court essentially had to decide whether the contract between the parties was renewed.
The court held that the contract was not renewed, thus no breach of contract had taken place.
The court examined the clauses of the contract that was entered into along with legislation that provides guidance regarding procurement in local government in reaching its decision. From the above instruments, the court stated that for renewal to take place, it would have to be in accordance with clause 17.1.1 of the contract and through legislation.
Seeing that that was not the case, the court stated that there was only an oral understanding between the parties to continue working together even after the contract between them had expired.
The suit by the plaintiff was dismissed with costs. Since there was no breach of contract, no remedies were available to the plaintiff.
The plaintiff company brought a suit against the defendant school and its deputy headmaster for breach of contract stating that the defendants failed to pay for services rendered by the plaintiff.
There were two issues before the court: whether there was a valid contract between the parties and whether the plaintiff carried out their services in accordance with local purchase orders 1941 and 1942.
The court held that there was a valid contract between the parties. It was also held that in rendering services, the plaintiff did not supply and install certain items in accordance with local purchase orders 1941 and 1942.
Regarding the validity of the contract, the court found that the second defendant had apparent authority to sign the local purchase orders meaning the contract was valid and that there was no express provision in the legislation stating that non-compliance vitiates legality of contract. In addition, the court found that the first defendant accepted the goods when they were delivered to it and had to pay accordingly.
The court’s judgement relied on a report by the Ugandan National Bureau of Standards which found that some of the items installed by the plaintiff were substandard.
The court awarded the plaintiff Shs 216,000 for delivery of goods and Shs 84,000 for general damages. In addition, the court awarded the plaintiff interest on the above amounts until payment was made in full.
The plaintiff entered into a loan agreement with the respondent. The plaintiff averred that the defendant had neglected and failed to pay the stipulated monthly installments and was therefore in breach of the loan agreement. The defendant however denied the claim and averred that she has never applied for any loan from the plaintiff but contended that her former employer and its directors applied for staff loans from the plaintiff.
The agreed issues however were whether there was a valid loan agreement between the parties; whether the second to fifth counter defendants were parties to the loan agreement; whether the first to fifth counter defendants jointly and severally misrepresented the contents and effect of the loan agreement and whether there is liability to pay the debt claimed by the plaintiff and what remedies are available to the parties.
The court found that there was a debt to be paid since the plaintiff and the defendant entered into a contract which is binding on both parties; the defendant was liable to pay the debt. Since the defendant signed the loan agreement personally with the plaintiff, she was to pay the money she owed them. However, since the second, third, fourth and fifth counter defendants misrepresented to the defendant the terms and contents of the loan agreement they were found liable in this respect and ordered to pay the defendant the equivalent of the principal sum which the defendant owed to the plaintiff.
The first appellant and the respondent are siblings whom were initially registered as tenants in common, on a land plot. In 2002, the proprietorship of this land was transferred from the names of the siblings to the 2nd to 8th appellants (who were at the time minor children of the first appellant).
The respondent was aggrieved by the transfer and registration of the appellant's descendants to the suit property. She contended that the first appellant had acted fraudulently in this transfer. She went to the High Court seeking reinstatement of her name on the suit title. The High Court granted the orders sought.
The appellants appeal the decision of the High Court. On the grounds that (1) the court erred in evaluating the evidence of the first appellant as a whole, nor recording of his evidence and (2) the respondent freely relinquished her interests in the property.
The respondent filed a cross appeal declaring that she is entitled to award of mesne profits and or general damages as well.
This court found that the transfer form did not amount to forgery or fraud. The appeal therefore succeeded in part. However, it was found that the respondent had not fulfilled the condition of transferring and subdividing part of lands into the names of the respondent - as they agreed.
The respondent was found to have carried out her part of the bargain and the first respondent must do his own as well.
The defendants applied for credit facilities to obtain steel products from the plaintiff. The second and third defendants stood surety. The plaintiff contended that the defendants refused to pay for the steel products. The proceedings were for breach of contract, and special and general damages. The defendants denied concluding the contract, and argued the matter ought to be heard in South Africa.
The issues for determination were whether the court lacked jurisdiction; whether there was a contract between the parties; whether the defendants breached the contract; and whether second and third defendants were liable.
On the issue of jurisdiction, the court considered the agreement. It was clear that the parties consented to the jurisdiction of the High Court of South Africa, however the court held that the Constitution and Judicature Act provided it with unlimited original jurisdiction in all matters. Even when parties had an exclusive jurisdiction agreement, the High Court of Uganda still had jurisdiction to hear and determine the matter before it.
Regarding the existence of the contract, the law required the plaintiff to prove the documents were signed by the second and third defendants. The court found that the plaintiff proved it entered into a valid contract with the defendants.
Whether the defendants breached the contract, the court held that the first defendant breached the contract by failing to pay for the goods, and that the second and third defendants were liable as sureties.
Plaintiff was awarded special and general damages.
This case concerns the award of damages, or not, to compensate for the negative consequences of the respondent’s repudiation of a procurement contract. In the first instance, the trial court dismissed the suit with costs after finding that there was no contract between the parties. The Court of Appeal reversed the trial court decision and awarded damages. The appellant, however, was dissatisfied with the quantum of damages awarded by the Court of Appeal and filed a further appeal to the Supreme Court, seeking damages for lost profits in addition to general damages. The respondent filed a cross-appeal proposing that the appellant’s appeal be dismissed, the decision of the Court of Appeal be reversed in part and the High court judgment and orders be restored. The respondent argued that no valid contract was entered into by the parties.
The court first considered whether there was a valid contract entered into between or executed between the parties under the 2003 PPDA Act and Regulations. PPDA section 76(3) requires that formal contracts be in writing. This requirement was not fulfilled. Consequently, no binding obligation arose out of the letter of bid acceptance. The court, therefore, dismissed the appeal filed by the appellant.