Birungi v Ahinduraho (Civil Suit 70 of 2021)
Observed later treatment
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Holding
The High Court held that an unwritten agreement exceeding UGX 500,000 is unenforceable under the Contracts Act 2010 s.10(5), but where money is advanced under such an agreement, the doctrine of unjust enrichment permits recovery of money had and received. The court allowed recovery of only the sum proven by documentary evidence (bank deposits totalling UGX 28,760,000), rejecting the plaintiff's larger claim where proof was absent. General damages and interest were denied for lack of justification.
Outcome
Plaintiff recovered UGX 28,760,000 as money had and received; remainder of claim dismissed
Facts
Between November 2019 and October 2020, the plaintiff advanced sums totalling UGX 60,460,500 to the defendant for various business ventures including soap manufacture, a clinic, land purchase, and cattle purchase. The parties had an oral mutual agreement to share profits. The plaintiff deposited UGX 28,760,000 into the defendant's joint bank account. When the defendant did not perform her obligations, the parties reached an agreement for her to refund UGX 58,543,000. The defendant failed to refund and did not file a defence. The suit proceeded ex parte for formal proof.
Issues
- Whether there was a valid contract between the Plaintiff and the Defendant and if so, whether the Defendant breached the contract.
- Whether the Plaintiff disbursed to the Defendant UGX 60,460,500 to purchase cows, fund the clinic business, fund the manufacturing of bar soap and purchase of land.
- Whether the Plaintiff is entitled to recover his monies amounting to UGX 60,460,500 advanced to the Defendant in the course of dealings between the Plaintiff and the Defendant.
- What remedies are available.
Orders
- Judgment entered for the plaintiff for UGX 28,760,000.
- General damages denied.
- Interest denied.
- Costs of the suit awarded to the plaintiff.
Rules and key headnotes
Legislation cited (12)
Cases cited (10)
- Nsubuga v Kavuma [1978] HCB 307
- Musoke Kitenda v Roko Construction Limited (Misc. Application No. 1240 of 2020)
- Lanex Forex Bureau Ltd v Mulangwe (Court of Appeal Civil Appeal No. 190 of 2016)
- Dr James Kashugyera Tumwine & Anor v Sr Willie Magara & Anor (Civil Suit No. 576 of 2004)
- Uganda Commercial Bank v Kigozi [2002] 1 EA 305
- Charles Acire v M Engonda (Civil Suit No. 143 of 1993)
- Kibimba Rice v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
- Omunyokol Akol Johnson v Attorney General [2012] UGSC 4
- Crescent Transportation Co Ltd v Bin Technical Services Ltd (Court of Appeal Civil Appeal No. 25 of 2000)
- Hope Mukankusi v Uganda Revenue Authority (Court of Appeal Civil Appeal No. 6 of 2011)
Cases citing this judgment (2)
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.