Wakilii

Kiwanuka and Another v Wasswa( suing through lawful attorney katana) (Civil Appeal No. 63 of 2021)

High Court · [2023] UGHCLD 118 · 2023 Appeal Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil appeal from Chief Magistrate Grade I court judgment ordering refund of money paid under failed land sale agreement
Decision
Lower court judgment ordering refund upheld; appellants to refund UGX 13,500,000/= with interest to respondent

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a purchaser pays the bulk of the purchase price for land and the vendors subsequently transfer the land to a third party without refunding the money, the vendors breach their contractual obligation to pass good title and must refund the money paid. The appellants' transfer of land to their son four months after receiving payment, leading to the land being mortgaged and forcing the respondent to repurchase it, constituted breach of contract justifying refund of the UGX 13,500,000/= paid.

Outcome

Lower court judgment ordering refund upheld; appellants to refund UGX 13,500,000/= with interest to respondent

Facts

The appellants sold land comprised in Kyadondo Block 200 Plot 1001 at Kawempe to the respondent under a sale agreement dated 14 April 2012 for UGX 16,400,000/=. The respondent paid UGX 13,500,000/= in two instalments (UGX 8,000,000/= on execution and UGX 3,500,000/= on 3 May 2012), with a balance of UGX 2,900,000/= to be paid after the appellants handed over the certificate of title to enable subdivision. On 26 September 2012, before completing the transaction, the appellants transferred the land to their son, Nsubuga Daniel, who immediately mortgaged it to Centenary Rural Development Bank for UGX 25,000,000/=. When Nsubuga defaulted on the loan, the bank initiated a forced sale. The respondent was prevented from taking possession by auctioneers and ultimately had to repurchase the property from the bank. The respondent sued in the Magistrate Grade I court at Nabweru for refund of the UGX 13,500,000/= paid. The trial magistrate found for the respondent, holding that the appellants' transfer of the land was unlawful and ordering refund with interest.

Issues

  1. Whether the learned trial magistrate erred in law and fact to hold that the Respondent was entitled to a refund of UGX 13,500,000/=.
  2. Whether the learned trial magistrate erred in law and fact when she failed to evaluate the evidence on record.

Orders

  • Appeal dismissed.
  • Decision of the lower court upholding refund of UGX 13,500,000/= with interest is upheld.
  • Costs awarded to the Respondent.

Rules and key headnotes

Contract Law — Formation — Valid Contract — Essential Elements
A contract is an agreement made with the free consent of parties with capacity to contract, for a lawful consideration and with a lawful object, with the intention to be legally bound.
Contract Law — Obligations of Parties — Performance of Promises
Parties to a contract are bound to perform or offer to perform their respective promises under the contract unless performance is dispensed with or excused under the Contracts Act 2010 or any other law.
Land & Property — Sale of Land — Vendor's Obligation — Passing Good Title
Where a vendor receives substantial payment under a land sale agreement, the vendor is bound by their contractual promise to pass good title to the purchaser and cannot clandestinely alienate the land by transferring it to a third party.
Contract Law — Breach of Contract — Vendor's Transfer to Third Party
A vendor who transfers land to a third party after receiving substantial payment from a purchaser, thereby preventing the purchaser from obtaining title and forcing the purchaser to repurchase the land, commits a breach of contract and must refund the purchase price paid.
Civil Procedure — Pleadings — Parties Bound by Pleadings
Parties are bound by their pleadings under Order 7 rule 7 of the Civil Procedure Rules and it is not open to a party to shift their position after pleadings have been filed.

Legislation cited (3)

Cases cited (1)

Full judgment

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

Kiwanuka_and_Another_v_Wasswa(_suing_through_lawful_attorney_katana)_(Civil_Appeal_No._63_of_2021)_[2023]_UGHCLD_118_(28_April_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.