Wakilii

Kanoblic Group of Companies (U) v Sugar Corporation of Uganda Ltd (H.C.C.S. 299 of 1993)

High Court · [1994] UGHC 28 · 1994 Judgment for Plaintiff (Partial) AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and payment for construction work
Decision
Plaintiff awarded UGX 313,408 as balance payment due

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court held that the plaintiff completed the construction work under the contract. The defendant was not in breach of contract as it had no obligation to supply materials to the contractor. The plaintiff failed to prove fraud to the required standard. Oral evidence was admissible under section 91 Evidence Act to prove an extension of time not stated in the revised written work order. After proper deductions for advances and materials supplied, the defendant owed the plaintiff UGX 313,408, not the UGX 4,395,715 claimed. The penalty clause was unenforceable as punitive rather than a genuine pre-estimate of loss.

Outcome

Plaintiff awarded UGX 313,408 as balance payment due

Facts

The plaintiff, a construction company, entered a written contract to build a dining hall for the defendant at Lugazi for an estimated UGX 6.5 million. The work order and plan were later revised, increasing the estimated value to UGX 15.7 million and the volume of work. The plaintiff completed the work 36 weeks late, attributing the delay to alterations by the defendant and delays in material supply. The plaintiff submitted a final bill of UGX 16,319,583 and claimed a balance of UGX 4,395,715 after deductions. The defendant disputed the amount, claiming the plaintiff inflated figures, left work incomplete worth UGX 405,100, and that materials supplied cost more than the plaintiff acknowledged. The defendant paid UGX 577,218 which the plaintiff treated as part payment and sued for the balance.

Issues

  1. Whether the defendant committed a breach of contract.
  2. Whether the amount of money claimed by the plaintiff tallies with the work done by them.
  3. Whether there was work uncompleted by the plaintiff worth Uganda Shs. 405,100.
  4. Whether the defendant was fraudulent in inflating quantities and prices of materials supplied.

Orders

  • Action allowed in part.
  • Defendant to pay the plaintiff the balance of UGX 313,408.
  • Each party to bear their own costs of the suit.

Rules and key headnotes

Evidence — Admissibility — Oral Evidence to Vary Written Contract — Extension of Time Not Stated in Revised Written Work Order
Where a wholly written contract is silent on a matter such as extension of time for increased work, oral evidence of a separate oral agreement on that matter is admissible under section 91 proviso (b) of the Evidence Act if it is not inconsistent with the written terms.
Contract Law — Breach of Contract — Duty to Supply Materials — No Express Obligation in Written Contract
Where a written contract does not impose an obligation on one party to supply materials to the contractor, that party is not in breach for failing or delaying to supply materials, even if materials were supplied as a matter of practice or convenience.
Evidence — Burden and Standard of Proof — Allegations of Fraud — Strict Proof Required
Allegations of fraud must be strictly proved. The standard of proof required is higher than a mere balance of probabilities but less than beyond reasonable doubt. Failure to adduce sufficient evidence meeting this standard results in the allegation failing.
Contract Law — Penalty Clauses — Distinction from Liquidated Damages — Recoverability
A sum agreed upon as penalty is recoverable as liquidated damages only if it is a genuine pre-estimate of damage likely to be suffered. If the sum is intended to punish the defaulting party rather than compensate the other party, it is a penalty and not recoverable.
Evidence — Documentary Evidence — Failure to Produce Best Evidence — Adverse Inference
Where a party alleges that figures in a list are fraudulently inflated but fails to produce the primary documents (requisition receipts) that would support their own figures, the court may draw an adverse inference and find that the party has not discharged the burden of proof.

Legislation cited (3)

Cases cited (2)

  • Vallabhdas Prahji v Nasani Lubega (1964) EA
  • R.O. Patel v L. Mukanyi (1957) EA 314

Full judgment

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

Kanoblic Group of Companies (U) v Sugar Corporation of Uganda Ltd (H.C.C.S. 299 of 1993) [1994] UGHC 28 (13 April 1994)
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.