Wakilii

Kibalama v Alfasan (Civil Appeal No. 19 of 2002)

Court of Appeal · [2004] UGCA 48 · 2004 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil appeal from a High Court judgment dismissing a suit for breach of an alleged oral contract for sale of goods
Decision
Appeal dismissed with costs to the respondent; High Court judgment upheld

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Court of Appeal dismissed the appeal, holding that the appellant failed to prove the existence of a binding oral contract for the sale of drugs. Although verbal contracts are valid, the pleaded terms did not settle everything necessary to create a binding relationship, and the appellant produced no documentary evidence of the alleged transactions. He also failed to prove a trade usage or custom, having called no witnesses with special knowledge as required by section 47 of the Evidence Act. The respondent's acknowledgment of receiving the money was equivocal, being tied to an alleged debt, so no judgment on admission could be entered. Having failed to prove his case, the appellant was entitled to no damages.

Outcome

Appeal dismissed with costs to the respondent; High Court judgment upheld

Facts

In or around 1994 the appellant was introduced to the respondent's export manager for the purpose of importing drugs into Uganda. The alleged arrangement was verbal: the appellant would place orders and transfer cash to the respondent's European bank account, after which the respondent would dispatch drugs to Uganda. On 12 January 1996 the appellant claimed to have placed an order worth US $15,000 for Cox Research Laboratories and transferred that sum, which the respondent received but failed to supply the drugs. The appellant sued for the sum, general damages, interest and costs. The respondent denied any such order, contending the US $15,000 was paid in partial settlement of a debt of US $34,590.90 the appellant owed it, and counter-claimed the balance. The trial judge found no contract existed and dismissed both the suit and the unprosecuted counter-claim. The appellant appealed. He produced bank evidence of the money transfer but no documentary evidence of the type, quantity or cost of drugs, or of goods received in prior dealings.

Issues

  1. Whether there was a valid contract between the appellant and the respondent for the sale of drugs worth US $15,000.
  2. Whether the appellant proved a trade usage or custom governing the alleged dealings between the parties.
  3. Whether the trial judge should have entered judgment for the appellant based on the respondent's admission of receiving US $15,000.
  4. Whether the trial judge erred in failing to assess damages the appellant would have received had he succeeded.

Orders

  • Appeal dismissed.
  • Judgment and orders of the High Court upheld.
  • Costs of the appeal to the respondent.

Rules and key headnotes

Contract Law — Oral Contracts — Requirement of a Concluded Bargain
Although a contract of sale may be made orally, to be a good contract there must be a concluded bargain that settles everything necessary and leaves nothing to be settled by further agreement; a party alleging an oral contract must prove all its material terms.
Contract Law — Trade Usage and Custom — Proof
A party relying on a trade usage or custom must show a consistent course of dealing in which the same terms were regularly incorporated, that both parties knew of those terms, and must prove the usage by clear, convincing and consistent evidence, including from persons with special knowledge as contemplated by section 47 of the Evidence Act.
Civil Procedure — Judgment on Admission — Requirement of Unequivocal Admission
Under Order 11 rule 6 of the Civil Procedure Rules, judgment may be entered on an admission only where the admission is unequivocal; where a defendant admits receiving money but disputes the purpose for which it was paid, the admission is equivocal and no judgment on admission can be entered.
Damages & Quantum — Assessment by Trial Court — Duty to Assess Even Where Claim Fails
It is well established judicial practice that a trial court should indicate the damages it would have awarded had the plaintiff established his claim, so as to avoid the delay and expense of remittal on appeal, even where judgment is given for the defendant.
Civil Procedure — Pleadings — Particulars of Contract Claim
In a suit based on contract the plaint must allege the contract, state its terms and whether it was oral or written, and under Order 7 rule 1(e) must state the particulars constituting the cause of action and when it arose.

Legislation cited (5)

Cases cited (6)

  • Bhogal v International Computers (E.A) Ltd [1972] EA 55
  • Harilal v Standard Bank [1967] EA 512
  • Selle v Associated Motor Boat Co. [1968] EA 123
  • Mute v Elikana [1975] EA 201
  • A.K.P.M. Lutaya v Attorney General (Civil Appeal No. 10 of 2002)
  • National Enterprises Corporation and 2 others v Nile Bank Ltd (Civil Appeal No. 17 of 1994)

Full judgment

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

Kibalama v Alfasan (Civil Appeal No. 19 of 2002) [2004] UGCA 48 (2 June 2004)
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.