Wakilii

Hwan Sung Industries Ltd v Tajdin Hussien & 2 Ors (Civil Suit No. 276 of 2001)

High Court · [2002] UGCOMMC 17 · 2002 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and refund of purchase price
Decision
Judgment for plaintiff with refund of purchase price, damages, and costs awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that goods supplied by the defendant were not fit for the purpose ordered by the plaintiff, an ice cream manufacturer. The plaintiff was entitled to reject the goods where internal and Uganda National Bureau of Standards examination revealed suspended insoluble matter and evidence of deterioration. The defendant was liable to refund the advance payment of US$ 8,000 and pay damages. The counterclaim for the balance of the contract price was dismissed.

Outcome

Judgment for plaintiff with refund of purchase price, damages, and costs awarded

Facts

The plaintiff, an ice cream manufacturer, ordered Orange Oil Flavour from the defendants in December 2000 for use in its Cool Cool Bar product. The plaintiff paid US$ 8,000 as 50% advance payment after receiving a sample. Upon delivery, the plaintiff's internal quality control examination revealed the supplied substance contained suspended insoluble matter. The Uganda National Bureau of Standards examination confirmed the substance showed rusting and labelling anomalies on drums, painted erasures concealing origin and labelling date, and suspended insoluble matter indicating deterioration in storage. The Bureau denied a guarantee of product safety. The plaintiff rejected the goods and demanded a refund. The defendant contended the goods complied with the sample and counterclaimed for the balance of US$ 8,000.

Issues

  1. Whether the defendant is liable to refund US$ 8,000 to the plaintiff for goods supplied that did not meet the required standard.
  2. Whether the defendant is entitled to the balance of the contract price of US$ 8,000.

Orders

  • Judgment entered against the defendant in the sum of US$ 8,000.
  • Defendant to pay Shs. 40,000 being costs of UNBS analysis report.
  • Interest on US$ 8,000 at 6% per annum from 15 December 2000 until payment in full.
  • Interest on Shs. 40,000 at 15% per annum from 7 March 2001 until payment in full.
  • Defendant to pay Shs. 1,500,000 as general damages.
  • Defendant to pay costs of the suit.
  • Counterclaim dismissed for lack of evidence.

Rules and key headnotes

Sale of Goods — Fitness for Purpose — Rejection of Goods
A buyer is entitled to reject goods where the goods supplied are not fit for the purpose for which they were ordered, and to claim a refund of money paid as deposit for the purchase.
Sale of Goods — Quality Standards — Expert Evidence
Where expert evidence from the Uganda National Bureau of Standards establishes that goods supplied contain contaminants and have deteriorated in storage, rendering them unsafe for the intended manufacturing purpose, the supplier is liable for breach of contract.
Sale of Goods — Counterclaim for Contract Price — Dismissal
A seller's counterclaim for the balance of the contract price will be dismissed where the buyer has lawfully rejected the goods as unfit for purpose and the seller has failed to prove the goods met the required standard.

Full judgment

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

Hwan Sung Industries Ltd v Tajdin Hussien & 2 Ors (Civil Suit No. 276 of 2001) [2002] UGCommC 17 (24 September 2002)
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.