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Mumejolog Services Limited v Kakule Micheal and Another (Civil Suit No. 577 of 2024)

High Court · [2025] UGCOMMC 342 · 2025 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 heard exparte after defendants failed to appear
Decision
Judgment entered for the plaintiff against the defendants jointly for USD 16,223 special damages plus interest at 8% per annum from date of filing suit until payment in full, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a valid and binding contract existed between the parties for the purchase and delivery of a vehicle at USD 35,000. The defendants breached the contract by failing to pay the outstanding balance of USD 16,223 covering the purchase price shortfall and additional costs for taxes, transport, and logistics. The plaintiff was entitled to special damages of USD 16,223, interest at 8% per annum from the date of filing suit until payment in full as general damages, and costs of the suit.

Outcome

Judgment entered for the plaintiff against the defendants jointly for USD 16,223 special damages plus interest at 8% per annum from date of filing suit until payment in full, and costs

Facts

On 15 September 2022, the plaintiff company contracted with the defendants, both Congolese nationals, to purchase and deliver a 2022 Toyota Hilux vehicle from Japan for USD 35,000 payable in installments within fifteen days of the initial payment. The defendants made three payments totaling USD 28,875 (USD 16,745, USD 9,750, and USD 2,880), with the second and third payments made outside the contractual deadline. Due to delayed payments, the plaintiff's initial order was canceled and a supplementary agreement was made. The plaintiff placed a fresh order and shipped the vehicle to Dar es Salaam. Upon arrival, the plaintiff demanded payment of the outstanding balance before releasing the vehicle. The defendants failed to pay and instead made criminal allegations against the plaintiff, resulting in the plaintiff's detention. The plaintiff was compelled to pay all taxes and transport the vehicle from Dar es Salaam to Kampala and onward to Congo. The second defendant seized the vehicle in Congo without paying the outstanding balance of USD 623 or reimbursing additional costs totaling USD 15,600 for taxes, transport, port charges, and logistics. The defendants filed a defense but did not appear at trial, and the matter proceeded exparte.

Issues

  1. Whether there was a valid and enforceable contract between the Plaintiff and the Defendants.
  2. Whether the Defendants breached the contract by failing to pay the balance and additional costs.
  3. Whether the Plaintiff is entitled to the claimed damages, interest, and costs.

Orders

  • The Defendants shall jointly pay the Plaintiff the sum of USD 16,223 being special damages.
  • The defendants shall pay interest on the special damages at the rate of 8% per annum from the date of filing the suit until payment in full.
  • The plaintiff is awarded costs of the suit.

Rules and key headnotes

Contract Law — Formation — Essential Elements — Valid and Enforceable Contract
A contract is an agreement entered into with the free consent of parties possessing the requisite capacity to contract, supported by lawful consideration, and made for a lawful object, with the intention to create legal obligations. An agreement attains enforceability at law upon fulfillment of these essential elements.
Contract Law — Breach — Failure to Perform Contractual Obligations
A breach of contract occurs when a party fails to discharge a duty owed pursuant to contractual obligations. Parties are bound by the terms of contracts they execute and these obligations cannot be avoided unless the contract is void or against public policy.
Damages & Quantum — Special Damages — Pleading and Proof Requirements
Special damages must be claimed with particularity and strictly proved. Evidence tendered must demonstrate a precise calculation aligned with the pleadings, enabling the court proper access to the basis of such claim. Special damages refer to losses specifically attributable to the particular circumstances of the case and must be proven with exactitude.
Damages & Quantum — General Damages — Delayed Repayment of Money — Interest as Compensation
In cases of delayed repayment of money, additional general damages are not awarded; instead, compensation is provided in the form of interest, calculated based on prevailing interest rate and inflation during the period of delay. This approach ensures that the creditor is made whole by reflecting the real value of money lost due to the delay, rather than awarding arbitrary or punitive damages.
Damages & Quantum — Interest Rates — Foreign Currency Debts
Where the principal sum is denoted in a foreign currency, the interest rate does not go outside single digit for, unlike the Uganda Shillings, foreign currencies are given less to fluctuations of the kind requiring interest rates to be higher.
Civil Procedure — Burden of Proof — Exparte Proceedings
Even in exparte proceedings, the court must be satisfied the plaintiff has proved their case on the balance of probabilities, and must consider the pleadings and evidence on record. The legal burden solely lies upon the plaintiff and does not shift, though the evidential burden keeps shifting depending on the facts alleged by either side.

Legislation cited (8)

Cases cited (13)

  • Printing and Numerical Registering Co v Simpson (1875) LR 19 Eq 462
  • Behange v School Outfitters (U) Ltd (2000) 1 EA 10
  • Mugabi John v Attorney General (Civil Suit No. 133 of 2002)
  • WM Kyambadde v Mpigi District Administration [1984] HCB
  • James Fredrick Nsubuga v Attorney General (High Court Civil Suit No. 13 of 1993)
  • Erukana Kuwe v Isaac Patrick Matovu and Another (High Court Civil Suit No. 177 of 2003)
  • Hadley v Baxendale (1854) 9 Exch 341
  • Charles Acire v M Engola (High Court Civil Suit No. 143 of 1993)
  • Kibimba Rice Ltd v Umar Salim (Supreme Court Civil Appeal No. 17 of 1992)
  • Nilecom Limited v Kodjo Enterprises (Civil Suit No. 18 of 2014)
  • Sowah v Bank for Housing & Construction [1982-83] 2 GLR 1324
  • Attorney General v Dr Maj (Rtd) Anthony Jallon Okullo (Court of Appeal Civil Appeal No. 207 of 2016)
  • Raila Amolo Odinga & Another v IEBC & 2 Others (Presidential Election Petition No. 1 of 2017) [2017] eKLR

Full judgment

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

Mumejolog Services Limited v Kakule Micheal and Another (Civil Suit No. 577 of 2024) [2025] UGCommC 342 (24 September 2025)
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.