Arrow Link Uganda Limited v Plinth Technical Work (U) Ltd (Civil Suit No. 1 of 2016)
Observed later treatment
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Holding
The High Court held that the defendant breached a contract to purchase crushed stones by failing to make prompt and complete payments as stipulated, delaying project performance. The plaintiff was entitled to compensation for unpaid stones delivered, special damages, and general damages. The defendant's counterclaim was dismissed. The court emphasized that valid contracts create reciprocal obligations, and breach entitles the injured party to compensation under the Contracts Act.
Outcome
Judgment entered for the plaintiff; defendant found in breach of contract and ordered to pay damages and the value of stones removed
Facts
On 29 November 2014, the defendant contracted with the plaintiff to purchase 18,000 tons of crushed stones for a Mbale road project and 32,000 tons for a Soroti project at UGX 24,000 per ton. The contract required staged payments: 10% deposit within 21 days of execution, 10% upon commencement of production, 50% upon delivery of half the stones, and 30% upon completion. The defendant paid the first installment late and incomplete, and failed to pay the second installment in full. The plaintiff commenced production but ran out of resources due to non-payment. On 13 July 2015, the defendant's manager removed 4,165 tons of crushed stones from the plaintiff's quarry without payment. The plaintiff continued working until resources depleted, then learned the defendant was sourcing stones elsewhere. The plaintiff closed the quarry at the end of 2015. The suit proceeded ex parte after the defendant's absence.
Issues
- Whether the Defendant was in breach of the terms of the contract.
- Whether the Plaintiff was in breach of the terms of the contract.
- What remedies are available to the parties.
Orders
- Declaration that the Defendant breached the contract dated 29th November 2014.
- Plaintiff awarded UGX 50,000,000 as special damages.
- Plaintiff awarded UGX 100,000,000 as general damages.
- Defendant ordered to pay UGX 99,960,000 for 4,165 tons of crushed stones ferried from plaintiff's quarry.
- Counterclaim by the Defendant dismissed.
- Plaintiff awarded interest of 8% on special and general damages from date of judgment until payment in full.
- Costs awarded to the Plaintiff.
Rules and key headnotes
Legislation cited (7)
Cases cited (6)
- Miller v Minister of Pensions [1947] 2 All ER 372
- Bimba Agro Livestock Company Limited V. Landmark University (2020) 15 NWLR (Pt. 1748) 465
- Ronald Kasibante v Shell Uganda Ltd (HCCS No. 542 of 2006)
- William Kasozi v DFCU Bank Ltd (HCCS No. 1326 of 2000)
- James Fredrick Nsubuga v Attorney General (HCCS No. 13 of 1993)
- Erukankuwe v Isaac Patrick Matovu & Anor (HCCS No. 177 of 2003)
Cases citing this judgment (1)
How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.