Wakilii

Karama Ahmed v Lule (Civil Suit No. 85 of 2010)

High Court · [2013] UGCOMMC 47 · 2013 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract and specific performance
Decision
Plaintiff's claim dismissed; defendant entitled to costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court dismissed the plaintiff's claim for breach of an agency agreement relating to importation of motor vehicles. The court held that the agency agreement was void for lack of consideration, as the plaintiff failed to prove he had paid money to the defendant prior to or at execution of the agreement. Without proof of consideration or an enforceable contract, no breach could be established and the plaintiff was entitled to no remedies.

Outcome

Plaintiff's claim dismissed; defendant entitled to costs

Facts

In October 2009, the plaintiff and defendant allegedly entered into an agency agreement under which the defendant was to import motor vehicles from Dubai and Japan on behalf of the plaintiff. The plaintiff claimed he had paid approximately US$150,000 to the defendant through various channels including cash, money transfer agents, and a third party named Faisal Kiggundu. The defendant denied being the plaintiff's agent and claimed he purchased the vehicles with his own money. The parties had traveled together to Dubai in August 2009, and certain vehicles were imported with the plaintiff's name on the bill of lading. However, receipts for the vehicles were issued in the defendant's name. The plaintiff produced a written agency agreement dated 21st October 2009, but the defendant contested its validity, claiming he signed it believing he was witnessing a land sale agreement. The agency agreement stated that the agent acknowledged receipt of money at execution, but the plaintiff and his witness admitted no money changed hands at that time. The third party Kiggundu testified he remitted moneys to a Mr. Makanga, not the defendant, and denied receiving cash from the plaintiff's wife as alleged.

Issues

  1. Whether or not the agency agreement executed on 21st October 2009 is valid and enforceable against the defendant.
  2. Whether there was breach of the agency agreement.
  3. What are the remedies available to the parties?

Orders

  • Suit dismissed with costs.

Rules and key headnotes

Contract Law — Consideration — Validity of Contract — Agreement Made Without Consideration
An agreement made without consideration is void unless it falls within specified statutory exceptions such as being made in writing and registered on account of natural love and affection between near relations, or being a promise to compensate for voluntary services, or being a written promise to pay a time-barred debt.
Contract Law — Consideration — Sufficiency — Need for Real and Ascertainable Value
Although consideration need not be adequate, it must be real and capable of estimation in terms of value. A contract that purports to acknowledge receipt of consideration without stating the amount or nature of such consideration fails to establish valid consideration.
Evidence — Burden of Proof — Civil Cases — Standard of Proof
He who alleges must prove. In civil cases the burden of proof is on a balance of probabilities, but the party bearing the burden must adduce convincing evidence to discharge it. Where a party alleges payment of large sums of money without documentary evidence or independent corroboration, the court may find the burden not discharged.
Evidence — Parole Evidence Rule — Exception for Failure of Consideration
Parole evidence is not admissible to vary the contents of a written contract, but an exception exists to show failure of consideration or other vitiating factors that affect the validity of the contract itself.
Contract Law — Breach of Contract — Pre-Condition for Breach
For there to be breach of contract, there must first exist a valid and enforceable contract imposing obligations on the parties. Where no valid contract is proved, no contractual duty arises and no breach can be established.

Legislation cited (9)

Cases cited (4)

  • URA v Stephen Mabosi (Supreme Court Civil Appeal No. 26 of 1995)
  • Kanting Printing Works v Tanga District Council (Civil Appeal No. 18 of 1970)
  • Thomas v Thomas (1842) 2 QB 851
  • Ronald Kasibante v Shell Uganda Ltd (High Court Civil Suit No. 542 of 2006)

Full judgment

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

Karama Ahmed v Lule (Civil Suit No. 85 of 2010) [2013] UGCommC 47 (15 March 2013)
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.