Wakilii

Jolly Tumuheirwe v Major Bugingo and Others (Civil Suit No. 1211 of 1999)

High Court · [2001] UGHC 133 · 2001 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 relating to canteen operation
Decision
Judgment entered for plaintiff with damages and costs awarded against defendants

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the defendants wrongfully terminated the plaintiff's canteen operating contract by locking her out without valid grounds and with insufficient notice. The alleged breaches, including employing more than two vetted attendants and selling on credit, were not proven. Credit facilities had been accepted as part of the contract terms, creating a guarantee arrangement where the unit would deduct debts from soldiers' salaries. The court awarded damages for unpaid debts, lost stock, building improvements, and loss of earnings from closure until judgment.

Outcome

Judgment entered for plaintiff with damages and costs awarded against defendants

Facts

The plaintiff was awarded a contract to operate a military canteen after being selected from six competitors. Contract terms required her to renovate the premises, stock the canteen with goods worth UGX 6 million, and employ a maximum of two vetted attendants. The plaintiff accepted and complied with these terms. She also offered credit facilities to soldiers, with debts deducted from their salaries through the unit's administrative arrangements. On 21 September 1999, the defendants gave her nine days' notice to cease operations. Two days later, on 23 September 1999, a second letter immediately terminated the contract, citing employment of more than two attendants, violation of operating hours, offering credit, selling at exorbitant prices, and not prioritising food and beverages. The canteen was locked, preventing the plaintiff from accessing it or recovering her stock and property. The plaintiff denied all alleged violations and claimed the defendants owed her for unpaid debts, lost stock, building improvements she had made, and lost earnings.

Issues

  1. Whether the defendant closed the canteen and evicted the plaintiff.
  2. Whether the plaintiff was allowed to take her property.
  3. Whether the notice given to terminate the contract was sufficient.
  4. Whether the contract was breached in any way.
  5. Whether the plaintiff was entitled to any remedies.

Orders

  • Defendants to pay plaintiff UGX 7,569,050 being money owed by soldiers.
  • Defendants to pay plaintiff UGX 10,259,000 being value of stock left in the canteen.
  • Defendants to pay plaintiff UGX 5,491,000 being value of personal effects.
  • Defendants to pay plaintiff UGX 2,822,000 being value of building materials.
  • Defendants to pay plaintiff UGX 830,000 being money used on wiring.
  • Defendants to pay plaintiff UGX 377,000 being money used for plumbing.
  • Defendants to pay plaintiff UGX 9,932,000 being value of furniture and electronics.
  • Defendants to pay plaintiff UGX 61,500,000 being loss of earnings at UGX 100,000 per day from closure to judgment date.
  • Defendants to pay interest at 8% per annum on all awards from judgment date until payment in full.
  • Defendants to pay costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Wrongful Termination — Constructive Exclusion
Where a party locks a canteen operator out of the premises, thereby preventing her from accessing the facility and fulfilling her contractual obligations, this constitutes a constructive eviction and a breach of contract even if no formal eviction order was issued.
Contract Law — Termination — Sufficiency of Notice — Reasons for Termination
A notice of contract termination that gives nine days to cease operations without stating reasons, followed immediately by a second notice terminating the contract with immediate effect, does not constitute sufficient notice where the contract involves significant capital investment and ongoing operations.
Contract Law — Credit Facilities — Implied Terms — Acceptance by Conduct
Where a contractor's bid explicitly offers credit facilities as part of the service proposal and this bid is accepted without objection, and where the practice of extending credit operates for a substantial period with the knowledge and cooperation of the contracting party's officers, the credit arrangement becomes an accepted term of the contract and cannot later be cited as grounds for termination.
Contract Law — Guarantee and Indemnity — Distinction — Statute of Frauds
Where a military unit undertakes to deduct debts owed to a canteen operator from soldiers' salaries and pay the operator directly, this constitutes a guarantee rather than a collateral undertaking, and is enforceable without being in writing. Following Birkmyr v Darnell, a guarantee where the promisor says 'I will be your paymaster' or 'I will see you paid' is enforceable as a primary obligation.
Damages & Quantum — Loss of Earnings — Breach of Commercial Contract — Assessment
Where a commercial operator is wrongfully excluded from premises and prevented from continuing a profitable business, loss of earnings may be assessed on a daily basis from the date of closure to the date of judgment, provided there is evidence that the business was generating consistent income prior to the breach.
Contract Law — Breach — Burden of Proof — Unproven Allegations
Where a party seeking to justify contract termination alleges multiple breaches including employment of unvetted staff, violation of operating hours, and charging exorbitant prices, but fails to adduce evidence to prove these allegations, the termination is wrongful and the terminating party is liable for breach of contract.

Legislation cited (1)

  • The Statute of Frauds (Cap. 75)

Cases cited (1)

  • Birkmyr v Darnell (1704) 1 Salk 27

Full judgment

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

Jolly Tumuheirwe v Major Bugingo and Others (Civil Suit No. 1211 of 1999) [2001] UGHC 133 (25 May 2001)
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.