Wakilii

Luyiga Kavuma v Mulira (Civil Suit 17 of 2021)

High Court · [2022] UGHCLD 254 · 2022 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for breach of contract for sale of land
Decision
Judgment entered for the plaintiff with damages and costs awarded; defendant ordered to pay current market value of land plus general damages and interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant breached a 2009 contract for sale of two acres of land by failing to deliver vacant possession or title deed despite receiving full payment of UGX 130,000,000. The court rejected specific performance as the land was unavailable, instead ordering the defendant to pay current market value as determined by joint valuation plus general damages of UGX 50,000,000 and interest at 15% per annum from date of filing.

Outcome

Judgment entered for the plaintiff with damages and costs awarded; defendant ordered to pay current market value of land plus general damages and interest

Facts

On 27 July 2009 the plaintiff and defendant entered an agreement for sale of two acres of land at Kigo, Ziranumbu for UGX 130,000,000, with payment in instalments by end of November 2009. The plaintiff paid the full purchase price. The defendant failed to deliver the land or title deed. An addendum was later signed varying the subject matter and committing the defendant to hand over title deed by 30 January 2019, but the defendant still failed to perform. Thirteen years after the agreement, the defendant had not delivered either vacant possession or refunded the purchase price.

Issues

  1. Whether there was a breach of the sale agreement by the defendant
  2. If so, which defence does the defendant have
  3. What remedies are available to the parties

Orders

  • The Defendant is in breach of the terms of the contract for the sale of the suit property comprised Block 260 land at Kigo, Ziranumbu.
  • The Defendant is hereby ordered to pay the market value of the suit land in PE7 (as determined by a private and government valuer) to the plaintiff together with interest at the rate of 15 percent per annum from the date of judgement until payment in full.
  • The Plaintiff is awarded general damages in the sum of shs. 50,000,000/- (fifty million) as general damages for breach of the contract.
  • The Plaintiff is awarded costs of the suit.

Rules and key headnotes

Contract Law — Breach of Contract — Sale of Land — Failure to Deliver Vacant Possession
Where a vendor receives full payment under a land sale agreement but fails to deliver vacant possession or title deed for thirteen years, the vendor is in fundamental breach of the contract regardless of any subsequent addendum purporting to vary the subject matter.
Contract Law — Waiver — Right to Rescind Contract
Where a vendor accepts late payment and executes an addendum conceding failure to perform instead of rescinding the contract, the vendor waives the right to claim entitlement to rescind for late payment and remains bound to perform the varied obligations.
Contract Law — Remedies — Specific Performance — When Refused
Specific performance will not be granted where the subject matter of the contract is unavailable for vacant possession, even where the vendor is in breach, as it would be unreasonable for the court to issue orders in vain.
Contract Law — Remedies — Damages — Current Market Value
Where land that has been fully paid for cannot be delivered after thirteen years, the purchaser is entitled to the current market value of the land rather than mere refund of the purchase price, as the land value appreciates over time.
Contract Law — Damages — Interest — Commercial Transactions
Where a defendant in a commercial transaction has detained the plaintiff's money for thirteen years and benefited from its use, the plaintiff is entitled to interest at the court rate of 15% per annum from the date of filing suit until payment in full.

Legislation cited (6)

Cases cited (11)

  • Barbudev v Johnson [1954] 1 ALL ER 640
  • Pioneer Shipping Ltd v B [1982] AC 724
  • Dr. Vincent Karuhanga versus NIC
  • William Kasozi v DFCU Bank Ltd (High Court Civil Suit No. 1326 of 2000)
  • Donald Kasibante v Isaac Musoke & Anor (High Court Civil Suit No. 512 of 2006)
  • Hadley v Baxendale [1854] 9 Exch 341
  • Assist (U) Ltd v Italian Asphalt and Haulage & Anor (High Court Civil Suit No. 188 of 1999)
  • Haji Asuman Mutekanga versus Cotton Growers (U) Ltd, 1995-96 HCB 107 SC (RIP)
  • Sietco v Noble Builders (U) Ltd (Supreme Court Civil Appeal No. 31 of 1995)
  • Crane Bank Ltd v Transportation & Trading Technical Services Ltd (Court of Appeal Civil Appeal No. 25 of 2000)
  • James Mbabazi & Anor v Matco Stores Ltd & Anor (Civil Reference No. 15 of 2004)

Full judgment

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

Luyiga_Kavuma_v_Mulira_(Civil_Suit_17_of_2021)_[2022]_UGHCLD_254_(16_November_2022)
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.