Memer Engineering Supplies Uganda Limited v Divine Light Finance Limited (Civil Suit 762 of 2019)

Observed later treatment

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

Holding

Held that the defendant's failure to pay for goods supplied by the plaintiff under a local purchase order worth UGX 51,191,000 constituted a breach of contract. The court found that the plaintiff had supplied the goods as specified in the LPO and the defendant had received and used them. The plaintiff was awarded special damages of UGX 51,191,000, general damages of UGX 25,000,000, interest on special damages at 10% per annum from the date of filing suit until payment in full, and interest on general damages at 8% per annum from the date of judgment until payment in full, together with costs.

Outcome

Judgment entered for the plaintiff against the defendant for breach of contract with monetary awards and costs

Facts

On 14 April 2019, the defendant issued a local purchase order to the plaintiff for the supply of various goods worth UGX 111,120,000. The parties agreed orally that goods would be delivered in two tranches with payment due within 30 days of each delivery. On 19 April and 15 May 2019, the plaintiff supplied and delivered goods and tax consultancy services worth UGX 51,191,000. The defendant received the goods and put them to use, including reselling to Arab Contractors Uganda Limited. Despite multiple demands, the defendant failed to pay for the goods supplied. The defendant contended that the plaintiff breached the contract by delivering bars that were neither pre-fabricated nor painted as allegedly required, and that the VAT consultation fee was not part of the contractual framework. The plaintiff sought recovery of the amount due plus damages.

Issues

1. Whether there was breach of contract, if so, by who?
2. What remedies are available to the parties?

Orders

• Special damages of UGX 51,191,000 awarded to the plaintiff.
• General damages of UGX 25,000,000 awarded to the plaintiff.
• Interest on special damages at the rate of 10% per annum from the date of filing the suit until payment in full.
• Interest on general damages at the rate of 8% per annum from the date of judgment until payment in full.
• Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Legislation cited (6)

• Sale of Goods and Supply of Services Act 2018 s.5
• Contracts Act 2010 s.61(1)
• Evidence Act Cap 6 s.101
• Evidence Act Cap 6 s.103
• Civil Procedure Act Cap 71 s.27(1)
• Civil Procedure Act Cap 71 s.27(2)

Cases cited (11)

• Behange v School Outfitters (U) Ltd (2000) 1 EA 20
• Barclays Bank of Uganda Limited v Howard Bakojja (HCCS No. 53 of 2011)
• Nakawa Trading Co Ltd v Coffee Marketing Board (HCCS No. 137 of 1991)
• Jovelyn Barugahare v Attorney General (SC Civil Appeal No. 28 of 1993)
• Kyambadde v Mpigi District Administration [1983] HCB 44
• Bonham-Carter v Hyde Park Hotel [1948] 64 TLR 177
• Ronald Kasibante v Shell (U) Limited (HCCS No. 542 of 2006)
• Storms v Hutchinson [1905] AC 515
• Crown Beverages Ltd v Sendu Edward (SC Civil Appeal No. 1 of 2005)
• Uganda Commercial Bank v Kigozi [2002] 1 EA 305
• Uganda Development Bank v Muganga Construction Co Ltd (1981) HCB 35

Cases citing this judgment (1)

How later Ugandan judgments in the Wakilii corpus have cited this case. Treatment labels come from Sequitur — Uganda’s citator — each backed by a verbatim span from the citing judgment, and are not an assertion that this case is, or is not, good law.

• Nalwanga v Jomayi Property Consultants Limited & Another (Civil Suit 63 of 2019)

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