Wakilii

Ahebwa Anita v Womugisha Isaiah and Another (Civil Suit No. 48 of 2024)

High Court · [2025] UGHCCD 112 · 2025 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and fraud, heard ex parte
Decision
Judgment entered for plaintiff; defendants ordered to refund investment and pay special damages with interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the defendants breached an investment agreement dated 4 September 2023 by failing to pay the agreed monthly profit of 0.05% on the plaintiff's UGX 50,000,000 investment, paying only UGX 900,000 of the UGX 12,500,000 due by February 2024. The fraud claim was dismissed for failure to plead particulars of fraud in the plaint. The defendants were ordered jointly and severally to refund the principal investment and pay special damages for unpaid profits.

Outcome

Judgment entered for plaintiff; defendants ordered to refund investment and pay special damages with interest and costs

Facts

In September 2023, the plaintiff invested UGX 50,000,000 with the 1st defendant, who represented that the funds would be invested in the 2nd defendant company's business with a monthly profit of 0.05% of the investment. The parties executed a written agreement on 4 September 2023. The 1st defendant was to pay UGX 2,500,000 monthly from October 2023. By February 2024, only UGX 900,000 had been paid of the UGX 12,500,000 due. The plaintiff's lawyers issued a demand letter on 23 January 2024. The 1st defendant's lawyers acknowledged the investment and proposed a payment plan. The plaintiff alleged the 2nd defendant was used as a vehicle for a pyramid scheme and had never engaged in actual trade. The matter proceeded ex parte as the defendants did not appear.

Issues

  1. Whether the 1st and 2nd defendants are jointly and severally liable for breach of contract and fraud, and what remedies are available to the parties?

Orders

  • The 1st and 2nd defendants are found liable jointly and severally for breach of contract.
  • The defendants are ordered to refund the plaintiff's investment of UGX 50,000,000 (Fifty million Uganda shillings) as money had and received.
  • The defendants are ordered to pay the plaintiff special damages of UGX 11,600,000 (Eleven million six hundred thousand Uganda shillings).
  • The plaintiff is awarded interest on the principal and special damages from the time of filing this suit until payment in full at the court rate of 6% per annum.
  • The plaintiff is granted costs.

Rules and key headnotes

Contract Law — Breach of Contract — Elements — Failure to Perform Contractual Obligations
A breach of contract occurs when a party fails to perform its contractual obligations. Where parties enter into a written agreement and one party fails to pay the agreed consideration, that party is liable for breach of contract.
Contract Law — Performance of Contracts — Duty to Perform — Contracts Act s.23(1)
Under section 23(1) of the Contracts Act, parties to a contract must perform or offer to perform their respective promises unless performance is dispensed with or excused under the Act or any other law.
Civil Procedure — Pleadings — Particulars of Fraud — Requirement to Plead Specifically
Particulars of fraud must be specifically pleaded in the plaint and evidence relating to the same must be led. Raising particulars of fraud only in submissions is synonymous with calling evidence at the bar and is impermissible. Parties are bound by their pleadings.
Contract Law — Joint and Several Liability — Company and Director
Where a director enters into a contract purportedly on behalf of a company and both the director and the company fail to perform their obligations, they may be held jointly and severally liable for breach of contract.

Legislation cited (5)

Full judgment

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

Ahebwa Anita v Womugisha Isaiah and Another (Civil Suit No. 48 of 2024) [2025] UGHCCD 112 (31 July 2025)
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.