Wakilii

Apollo Kaddumukasa Kironde v Cairo International Bank Limited (Civil Suit No. 591 of 2002)

High Court · [2002] UGCOMMC 35 · 2002 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
Decision
Judgment entered in favour of the plaintiff with special and general damages awarded, plus interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the plaintiff supplied meals meeting the agreed standard, as evidenced by consistent daily consumption by the defendant's staff. The defendant's summary termination without the required two months' notice under clause 9 of the contract was unlawful. The plaintiff was entitled to recover lost earnings for the notice period (UGX 3,096,000), general damages for breach (UGX 1,000,000), and interest at commercial bank rate. Special damages for wages paid ex gratia and foodstuffs consumed were not recoverable.

Outcome

Judgment entered in favour of the plaintiff with special and general damages awarded, plus interest and costs

Facts

In early 2002, the plaintiff contracted with the defendant bank to supply meals to its staff at UGX 1,500 per plate. The written contract dated 10 May 2002 commenced on 11 March 2002 and was open-ended, but either party could terminate by giving two months' notice. The plaintiff provided meals through two employed workers and maintained an average daily service of 51.6 persons. On 24 August 2002, the defendant summarily terminated the contract without notice, alleging the meals were substandard, recycled, cold, and unhygienic. The plaintiff had contracted with a third party (Makaabugo) on 12 March 2002 to supply foodstuffs on a long-standing basis to fulfil his obligations under the catering contract. The plaintiff claimed he had paid wages ex gratia to his workers for two months and had prepaid for foodstuffs he could not fully use due to the abrupt termination.

Issues

  1. Whether the plaintiff complied with the terms and conditions of the contract by supplying and serving meals that were of the agreed standard.
  2. Whether the plaintiff contracted a third party on a long-standing basis for the purpose of fulfilling the contract.
  3. Whether the plaintiff was entitled to notice before termination of the contract.
  4. What remedies are available to the plaintiff.

Orders

  • The defendant shall pay the plaintiff UGX 3,096,000 as special damages.
  • The defendant shall further pay the plaintiff UGX 1,000,000 as general damages.
  • Special damages shall bear interest at commercial bank rate from 24 August 2002 until payment in full.
  • General damages shall bear interest at commercial bank rate from the date of judgment until payment in full.
  • The defendant shall pay the costs of the suit.
  • Costs shall bear interest at court rate from the date of judgment until payment in full.

Rules and key headnotes

Contract Law — Termination — Breach of Notice Requirement
Where a contract permits termination by either party upon giving a specified notice period, summary termination without such notice constitutes a breach of contract, entitling the innocent party to damages for loss of earnings during the notice period.
Contract Law — Performance — Standard of Performance
The standard of contractual performance is determined by the express terms of the agreement. Where one party alleges substandard performance, the consistent acceptance and consumption of the goods or services by the other party's staff over the contract period provides strong evidence that the performance met the agreed standard.
Damages & Quantum — Special Damages — Requirement of Legal Obligation
Special damages must be specifically pleaded and strictly proved. A party cannot recover as special damages amounts paid ex gratia to third parties where there was no legal obligation to make such payments.
Damages & Quantum — Special Damages — Lost Earnings During Notice Period
Where a contract is unlawfully terminated without the required notice, the innocent party is entitled to recover as special damages the earnings they would have received during the notice period, calculated on the basis of average performance under the contract.
Damages & Quantum — Special Damages — Loss Not Suffered
A plaintiff cannot recover special damages for goods received and consumed, as no actual loss was suffered in respect of those goods. Any claim for undelivered goods should be pursued against the supplier, not against the party who breached the principal contract.

Cases cited (1)

  • Estate of JK Karsan v Maganlal Bhatt (Civil Appeal No. 25 of 1964)

Full judgment

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

Apollo Kaddumukasa Kironde v Cairo International Bank Limited (Civil Suit No. 591 of 2002) [2002] UGCommC 35 (26 May 2002)
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.