Wakilii

Cotton Products (U) Ltd v Moses Olowo aka Moses Oyuki T A Consumer Connect Link Promotions (Civil Suit No. 366 of 2004)

High Court · [2005] UGCOMMC 68 · 2005 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 sale of goods on credit
Decision
Judgment entered for the plaintiff with monetary award and costs; defendant's counterclaim dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court found an informal oral contract existed between the parties covering both promotion and sale of sanitary pads. The defendant breached the contract by failing to pay UGX 17,103,000 for goods supplied. The plaintiff was awarded special damages of UGX 17,103,000, nominal general damages of UGX 200,000, interest at 24% per annum from judgment, and costs. The defendant's counterclaim was dismissed for want of prosecution after he abandoned the proceedings.

Outcome

Judgment entered for the plaintiff with monetary award and costs; defendant's counterclaim dismissed

Facts

The plaintiff company was the sole agent for Kotex sanitary pads in Uganda. In late November 2003, the defendant approached the plaintiff requesting to buy goods on credit to sell to the public. The plaintiff supplied sanitary pads worth UGX 23,328,000 under an oral arrangement. The plaintiff issued the defendant a letter stating he was engaged to promote their products. The defendant made partial payment of UGX 6,220,000 but failed to pay the balance of UGX 17,103,000. Two cheques issued by the defendant totaling UGX 3,100,000 were dishonoured. During trial, the defendant abandoned the proceedings, failing to cross-examine the plaintiff's witness or give evidence himself.

Issues

  1. Whether there was a valid contract between the parties?
  2. If there was a valid contract whether there was breach on the part of the defendant?
  3. What remedies are available?

Orders

  • Defendant to pay plaintiff UGX 17,103,000 as special damages.
  • Defendant to pay plaintiff UGX 200,000 as general damages.
  • Interest at 24% per annum from date of judgment until payment in full.
  • Costs awarded to the plaintiff.
  • Counterclaim dismissed for want of prosecution.

Rules and key headnotes

Contract Law — Formation — Oral Contracts — Validity
A contract may be wholly by word of mouth, wholly in writing, or partly by word of mouth and partly in writing. No formality is generally needed for a valid contract to exist.
Evidence — Documentary Evidence — Delivery Notes and Invoices as Proof of Contract
Delivery notes signed by a defendant evidencing receipt of goods and their sale price are consistent with the existence of a sale contract and can establish both the existence of the contract and its terms.
Contract Law — Breach — Non-Payment for Goods Supplied
Where a defendant fails to pay for goods supplied under a contract and abandons the defence midway through trial without controverting the evidence of non-payment, the court will find breach of contract established.
Contract Law — Damages — General Damages — Nominal Damages
Where the informal nature of a contract makes assessment of general damages difficult and no specific justification is provided for a claimed amount, the court may award nominal general damages.
Contract Law — Damages — Interest — Rate of Interest
Interest at 30% per annum may be reduced to 24% per annum where the court finds the higher rate excessive given current commercial bank rates.
Civil Procedure — Counterclaim — Dismissal for Want of Prosecution
A counterclaim will be dismissed for want of prosecution where the defendant abandons the proceedings without giving evidence or prosecuting the counterclaim.

Full judgment

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

Cotton Products (U) Ltd v Moses Olowo aka Moses Oyuki T A Consumer Connect Link Promotions (Civil Suit No. 366 of 2004) [2005] UGCommC 68 (28 November 2005)
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.