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.
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.