Wakilii

Africa Polysack (U) Ltd v Quality Polybags (U) Ltd (Civil Suit 1505 of 2025)

High Court · [2026] UGCOMMC 301 · 2026 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt arising from breach of contract for supply of goods
Decision
Judgment entered for the plaintiff for the full liquidated sum claimed plus general damages and interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division held that the defendant breached a contract for supply of goods by failing to pay the outstanding sum of USD 267,683. The court awarded the plaintiff the full liquidated sum, general damages of USD 25,000, interest at 12% per annum on the principal debt, interest at 6% per annum on general damages, and costs. The court proceeded to determine the matter on the merits despite the defendant's failure to file a defence, applying the principle that the plaintiff must prove its case on a balance of probabilities even in uncontested proceedings.

Outcome

Judgment entered for the plaintiff for the full liquidated sum claimed plus general damages and interest

Facts

In 2023, the plaintiff and defendant entered into a contract for supply of polypropylene raffia, calcium, HDPE, and LDPE raw materials. The plaintiff supplied goods on credit over a period of time and the defendant paid invoices as they fell due. By 30 April 2025, the defendant had accumulated an outstanding balance of USD 267,683 with running interest at 3% per month. The plaintiff engaged the defendant through emails and meetings wherein the defendant acknowledged the debt and promised to pay. On 19 May 2025, the plaintiff served a notice of intention to sue through its advocates. The defendant failed to respond or make payment. The plaintiff filed suit on 5 March 2026. The defendant was duly served on 15 March 2026 but failed to file a defence within the prescribed period.

Issues

  1. Whether the defendant breached its contractual obligations?
  2. Whether the plaintiff is entitled to the reliefs sought?

Orders

  • The defendant shall pay the plaintiff the sum of USD 267,683 (United States Dollars Two hundred sixty-seven thousand six hundred eighty-three Only).
  • An interest of 12% per annum awarded on the sum mentioned in (1) above.
  • The plaintiff is awarded general damages of USD 25,000 at 6% per annum.
  • The defendant shall pay costs of the suit.

Rules and key headnotes

Contract Law — Formation — Informal Contracts — Written Evidence
A formal written contract is not required for enforceability. The writing requirement is satisfied by any signed writing that reasonably identifies the subject matter, indicates that a contract exists, and states the material terms with reasonable certainty. Various documents such as purchase orders, receipts, letters, and written communications may be put together to provide the necessary writing.
Contract Law — Breach — Failure to Pay for Goods Supplied
Breach of contract is the violation of a contractual obligation by failing to perform one's promise, by repudiating it, or by interfering with another party's performance. Where a party fails to pay for goods supplied under a contract of sale, that party breaches the contract.
Civil Procedure — Default Judgment — Burden of Proof in Uncontested Cases
Failure by a defendant to contest a case does not absolve the plaintiff of the duty to prove the case to the required standard. Even where evidence is not controverted, the plaintiff must discharge the burden of proof on a balance of probabilities and demonstrate that the story is credible and truthful.
Damages & Quantum — General Damages — Breach of Contract — Compensatory Principle
General damages are those damages that arise naturally and in the normal course of events from a breach of contract. An award of general damages is compensatory and is intended to put the innocent party, as far as money can do so, in the same position as if the contract had been performed, applying the principle of restitutio in integrum.
Damages & Quantum — Interest — Contractual Interest — Court's Power to Reduce Harsh Rates
Where an agreement for payment of interest is sought to be enforced and the court is of the opinion that the rate agreed to be paid is harsh and unconscionable and ought not to be enforced by legal process, the court may give judgment for payment of interest at such rate as the court considers just.

Legislation cited (10)

Cases cited (12)

Full judgment

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The original judgment as reported. Read the original PDF before relying on any passage.

Africa Polysack (U) Ltd v Quality Polybags (U) Ltd (Civil Suit 1505 of 2025) [2026] UGCommC 301 (12 June 2026)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.