Wakilii

Kirugi v Masiko (Civil Suit 457 of 2021)

High Court · [2023] UGCOMMC 249 · 2023 Judgment for Defendant AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for declaration of interest in property, compulsory partition, account of profits, and recovery of money
Decision
Suit dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court dismissed the plaintiff's claim for a declaration of interest in a hotel property and recovery of money allegedly advanced for its development. The plaintiff failed to prove the existence of a contract or partnership with the defendant. Although money transfers between the parties were evidenced, the irregular nature of transactions and the parties' romantic relationship made it probable that monies were for mutual assistance rather than a business arrangement. The requirement under the Contracts Act that contracts exceeding twenty-five currency points be in writing is not mandatory where a contract may be implied from conduct, but the plaintiff's evidence did not establish such an implied contract.

Outcome

Suit dismissed

Facts

The plaintiff and defendant met in Canada in 2014 and entered into a romantic relationship with intention to marry. The plaintiff claimed that in 2015 they agreed to enter a partnership or joint venture to develop the defendant's hotel, Kasubi Forest Cottages, by pooling money. She alleged she advanced Canadian dollars 84,789 to the defendant on an on-demand basis, of which he refunded 32,038, leaving 52,751 owing. She claimed they agreed she would recoup all monies, share monthly business profits, and use one hotel unit as their matrimonial home. The defendant denied any business arrangement, stating the money transfers were the plaintiff's contribution towards shared living expenses which stood at USD 3,000 per month, rising to USD 5,000 when her three children joined them from Kenya. He stated the hotel was constructed using his savings and bank loans, and that the only joint property was a farm in Kayunga which the plaintiff had transferred into her name.

Issues

  1. Whether there was a valid contract and or partnership between the Plaintiff and Defendant for the further development and structural improvement of Kasubi Forest Cottages?
  2. Whether the Plaintiff performed her obligations under the contract and or partnership?
  3. Whether the Defendant breached his obligations under the contract and or partnership?
  4. What remedies are available to the parties?

Orders

  • Suit dismissed with costs to the Defendant.

Rules and key headnotes

Contract Law — Formation — Implied Contracts — Proof by Conduct
A contract may be oral, written, partly written, or implied from the conduct of the parties. The requirement under the Contracts Act that contracts whose subject matter exceeds twenty-five currency points be in writing is not mandatory, and the provisions of the law must be read as a whole to fulfil its purpose.
Evidence — Burden of Proof — Civil Matters — Standard of Proof
In civil matters the burden of proof is on the plaintiff. Where a plaintiff claims the existence of a contract or partnership, the plaintiff must prove its existence by evidence, and mere money transfers between parties in a romantic relationship, without a consistent pattern or clear purpose, do not establish a business arrangement.
Contract Law — Proof of Contract — Conduct of Parties — Romantic Relationships
Where parties are in a romantic relationship, money exchanged between them is more probably for mutual assistance than for a business purpose. Irregular transactions without consistent pattern, coupled with evidence of financial support in both directions, do not prove the existence of a contract or partnership by conduct.

Legislation cited (8)

Full judgment

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

Kirugi v Masiko (Civil Suit 457 of 2021) [2023] UGCommC 249 (30 August 2023)
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.