Wakilii

Country Bakeries Ltd v International Organisation For Migration (Civil Suit No. 35 of 2012)

High Court · [2015] UGCOMMC 113 · 2015 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for alleged breach of services agreement, proceeded to default judgment and formal proof
Decision
Suit dismissed in full — no breach of contract proved

Observed later treatment

Cited — treatment unverified cited in 5 (treatment unverified) Sequitur — Uganda’s citator · Derived from citing cases in the Wakilii corpus — not an assertion that this case is good law.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

No adverse treatment recorded Cited 5 times with no adverse treatment recorded; not yet tested on the merits. Citations rising — 5 citing cases on record, 5 in the most recent three data years. Derived from citing cases in the Wakilii corpus — a deterministic signal, not legal advice.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Court held that no breach of services agreement occurred where defendant contributed 87% of agreed value through equipment in working condition, despite one faulty machine being manufacturer's fault. Plaintiff's claim for lost profits from cash-flow projection was foreign to agreement's non-commercial social purpose of employing vulnerable ex-combatant youth. Suit dismissed.

Outcome

Suit dismissed in full — no breach of contract proved

Facts

Country Bakeries Ltd operated Teng Piny Farming Enterprises in Gulu. IOM, an international organization rehabilitating vulnerable ex-combatant youth from the Lord's Resistance Army in Northern Uganda, entered a Services Agreement with plaintiff on 22 September 2009. Plaintiff agreed to house, feed and employ 50 vulnerable youth initially for 6 months, with possibility of employing 100 more long-term. IOM agreed to provide up to USD 30,000 in-kind or cash contributions: a Canter Two-Tonne truck, peanut butter machine, peanut sheller, and 3-in-1 oil press. Equipment valued at USD 29,400 was provided (plaintiff contributed USD 3,400 towards truck). In June 2010, the 3-in-1 oil press (valued USD 4,000) arrived in poor condition and required return to South Africa for repair. Technician confirmed peanut butter machine and sheller were functional. Agreement ended on or about 20 July 2010 per amendment dated 15 April 2010. IOM assigned the truck, peanut butter machine and sheller to plaintiff. Only 34 youth were employed, not the planned 50. Plaintiff sued for breach claiming lost profits based on cash-flow projection not included in agreement annexures.

Issues

  1. Whether the Defendant breached the terms of the Services Agreement.
  2. What remedies are available to the Plaintiff.

Orders

  • Suit dismissed.
  • Plaintiff to bear its own costs.

Rules and key headnotes

Contract Law — Breach — Nature of Non-Commercial Agreements
Where parties enter a services agreement for social purpose rather than commercial profit, and one party is an intergovernmental organization contributing in-kind support to facilitate the other party's employment of vulnerable persons, the agreement's non-monetary purpose and lack of equity position affects the standard for finding breach of contract.
Contract Law — Breach — Substantial Performance
A party who contributes 87% of agreed value through equipment in working condition, where the remaining 13% fails due to manufacturer's fault rather than the party's own default, has substantially performed its contractual obligations and cannot be said to have breached the agreement.
Contract Law — Interpretation — Documents Extrinsic to Agreement
A cash-flow projection document not marked as an annexure to a services agreement and not referenced in the agreement's text cannot be relied upon as forming part of the contractual obligations, particularly where the agreement's purpose was social rather than commercial.
Contract Law — Remedies — Special Damages
A plaintiff cannot claim special damages for the full value of agreed contributions where it received and continues to use 87% of the contributed equipment, nor can it claim refund of all freight costs and engineer's expenses where two out of three machines were functional and the plaintiff benefitted from their use.
Contract Law — Remedies — Acceptance of Performance Bars Subsequent Claims
Where a party accepts assignment of equipment under a proposed settlement, receives possession, and raises no protest, it cannot subsequently sue for breach of contract in relation to those items it accepted.

Legislation cited (2)

Cases cited (1)

  • Ronald Kasibante v Shell (U) Ltd (No. 546 of 2006)

Cases citing this judgment (5)

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

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

Country Bakeries Ltd v International Organisation For Migration (Civil Suit No. 35 of 2012) [2015] UGCommC 113 (17 September 2015)
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.