Elsa Bokhre Abraha v Opec Prime Properties (U) Ltd and Another (Civil Suit 106 of 2020)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The court held that the 1st Defendant breached the Sale and Purchase Agreement by failing to deliver the townhouse by the agreed date of 30 September 2016 and failing to refund the deposit of USD 150,000. The defence of frustration failed because the termination of the Public Private Partnership Agreement by Government occurred in August 2018, nearly two years after the contractual delivery date had passed. The Third Party was not liable to indemnify the 1st Defendant as the contract was not frustrated by Government action.
Outcome
Judgment entered for the Plaintiff against the Defendants with orders for refund of USD 150,000, general damages of UGX 200,000,000, interest, and costs. Third party claim dismissed.
Facts
On 19 January 2015, the Plaintiff entered into a Sale and Purchase Agreement with the 1st Defendant to acquire Townhouse No. 25 on Plot 28 Naguru Avenue at USD 280,000. The Plaintiff paid USD 150,000 as deposit (USD 5,000 on 27 January 2016 and USD 145,000 on 4 March 2016). The agreement provided for delivery and vacant possession by 30 September 2016. The 1st Defendant failed to deliver the completed townhouse by that date. The certificate of title was transferred to the Plaintiff on 12 June 2017 despite non-completion of construction. On 25 February 2018, the 1st Defendant wrote indicating problems with Government and that the contract had been withdrawn. The 1st Defendant had entered into a Public Private Partnership Agreement with Government for the Naguru-Nakawa satellite city development, which was terminated by Government on 9 August 2018. The Plaintiff neither received the completed house nor a refund of the deposit.
Issues
- Whether the contract between the parties was frustrated?
- Whether the 1st Defendant is liable for breach of contract specifically the Sale and Purchase Agreement for the purchase by the Plaintiff of Town House Number 25 Naguru?
- Whether the Third Party is liable to indemnify the 1st Defendant?
- What remedies are available to the parties?
Orders
- A declaration that the Defendants breached the contract.
- An order for recovery of USD 150,000 (United States Dollars One Hundred Fifty Thousand).
- General damages of UGX 200,000,000 (Uganda Shillings Two Hundred Million only).
- Interest on the USD 150,000 at the rate of 25% per annum from the date of filing the suit until payment in full.
- Interest on general damages at the rate of 6% per annum from the date of judgment till payment in full.
- Costs of the suit awarded to the Plaintiff.
- The suit as against the Third Party is dismissed with costs.
Rules and key headnotes
Legislation cited (7)
Cases cited (22)
- Senkungu & 4 Ors v Mukasa (Civil Appeal No. 17 of 2014)
- Jovelyn Barugahare v Attorney General (SCCA No. 28 of 1993)
- Davis Contractors Ltd Vs Fareham Urban District Council [1956] 2 All ER 145 at pg. 160
- Oyester International Ltd v Air Guide Services Ltd (Civil Suit No. 424 of 1994)
- Behange Vs School Outfitters(U) Ltd [2000]1 E. A 20 at 21
- Barclays Bank of Uganda Limited v Bakojja (Civil Suit No. 53 of 2011)
- Nakawa Trading Co. Ltd v Coffee Marketing Board (HCCS No. 137 of 1991)
- Green Boat Entertainment Ltd v City Council of Kampala (Civil Suit No. 580 of 2003)
- Godfrey Magezi & Anor v Sudhir Ruparelia (SCCA No. 16 of 2001)
- Yafesi Walusimbi Vs Attorney General [1959] 1 EA 223 at 225
- Eastern Shipping Co. Vs Quah Beng Kee [1924] A.C. 117
- Birmingham and District Land Co. Vs London and North Western Ry.Co.(1887), 34 Ch. D 261
- Sango Bay Estates Ltd & Others Vs Dresdner Bank AG. (No. 2) [1971] EA 307 at 313
- Storms Vs Hutchinson [1905] A.C 515
- Robert Cuossens v Attorney General (Civil Appeal No. 8 of 1999)
- Crown Beverages Ltd v Sendu Edwards (Civil Appeal No. 1 of 2005)
- Bank of Uganda v Kabuye (Civil Appeal No. 6 of 2020)
- Uganda Commercial Bank Vs Kigozi [2002] 1 EA 305 at 307
- Crescent Transportation Co Ltd v Bin Technical Services Ltd (CACA No. 25 of 2000)
- Premchandra Shenoi & Anor v Maximov Oleg Petrovich (Civil Appeal No. 9 of 2003)
- Mukisa Biscuit Manufacturing Co. Ltd Vs West End Distributors Ltd (No.2) [1970] EA 469
- Ushillani v Kampala Pharmaceuticals Ltd (Civil Appeal No. 6 of 1998)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.