Wakilii

Grimble v Clark (C.A. 32-1933.)

East African Court of Appeal · [1937] EACA 44 · 1937 Appeal Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Appeal from High Court of Tanganyika dismissal of claim for breach of employment contract
Decision
Matter remitted to High Court for assessment of general damages and taking of accounts

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

By majority (Lucie-Smith Ag. C.J. and Horne J., Abrahams C.J. dissenting), the Court held that the appellant was entitled to six months' leave on full salary and first-class passage costs in respect of three years' completed service under the terms of the original employment advertisement, notwithstanding termination of the contract. The appellant was also entitled to an account of his share of profits for twelve months to 13 March 1933, but not to house allowance or percentage of profits after termination.

Outcome

Matter remitted to High Court for assessment of general damages and taking of accounts

Facts

The respondent, an advocate in Tanganyika, advertised in The Times of London on 7 June 1929 for a legal assistant, offering good salary, percentage of profits, free furnished quarters, and six months' leave on full pay every three years with free first-class passages. The appellant, a barrister practising in England, responded. After an interview at Bexhill on 2 July 1929, the respondent telegraphed on 16 November 1929 offering the post at £400 per annum plus share of profits, free furnished quarters and passages, subject to satisfactory references. The appellant gave unqualified acceptance the same day. The respondent subsequently sent a draft service agreement containing different leave terms (leave only upon renewal of contract), but the parties did not reach agreement on proposed modifications. The appellant sailed to Tanganyika in March 1930 and served for three years. At the end of three years, the respondent terminated the contract on one month's notice. The appellant claimed six months' salary, house allowance, percentage of profits, passage money, and general damages, arguing he was entitled to leave benefits under the original advertisement terms.

Issues

  1. Whether a binding contract of employment was concluded by telegram and letter of 16 November 1929 or by subsequent correspondence including a draft service agreement.
  2. Whether the phrase 'six months' leave on full pay every three years with free first-class passages' in the employment advertisement entitled the appellant to leave pay and passage costs upon termination of employment after three years' service.
  3. Whether the appellant was entitled to an account of his share of profits for the twelve months to 13 March 1933.

Orders

  • Appeal allowed with costs in the Court of Appeal and in the lower Court.
  • Case remitted to the High Court of Tanganyika for assessment of general damages.
  • Respondent to provide an account of appellant's share of profits for twelve months to 13 March 1933.

Rules and key headnotes

Contract Law — Formation of Contract — Offer and Acceptance — Effect of Subsequent Negotiations
Where an offer of employment terms is made and unconditionally accepted, a binding contract is concluded at that point, and subsequent negotiations which do not reach finality or agreement cannot affect the terms of the contract already formed.
Employment & Labour — Terms of Employment — Leave Entitlement — Accrual Upon Completion of Service Period
A contractual provision for 'six months' leave on full pay every three years with free first-class passages' in an employment contract for service in a tropical country entitles an employee to leave pay and passage costs upon completion of three years' service, even where the employer terminates the contract at the end of that period and does not renew it.
Employment & Labour — Termination of Employment — Accrued Benefits — Distinction Between Ongoing Contractual Benefits and Accrued Entitlements
Upon termination of an employment contract, an employee is entitled to salary and passage costs in respect of accrued leave, but not to ongoing benefits such as house allowance or percentage of profits which are contingent upon continued service.

Cases cited (1)

  • Perry v Suffields Ltd (1916) 2 Ch 187

Full judgment

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Grimble v Clark (C.A. 32-1933.) [1937] EACA 44 (1 January 1937)
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.