Mwesigye Isha Evans and Another v Tebagalika Kasirye G.W. and Others (Civil Suit No. 875 of 2019)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
A contract for the sale of land executed by administrators who were not the registered proprietors and had no legal capacity to sell was void ab initio. Although the defendants obtained the plaintiffs' consent by fraud and misrepresentation, the contract was not voidable because the plaintiffs had constructive notice of defects in title and failed to exercise ordinary diligence by verifying the administrators' authority and the registered proprietor's interest before completing the transaction. The suit was dismissed.
Outcome
Suit dismissed on the basis that the contract was void ab initio and the plaintiffs had constructive notice of defects in title
Facts
On 1 November 2004, the plaintiffs purchased land comprised in Block 215 Plot 1245 at Kulambiro from the defendants, who were administrators of the estate of the late Yokana Sooka, for UGX 16,000,000. The plaintiffs registered the land in their names on 3 February 2006. The sale agreement contained an indemnity clause requiring the defendants to refund the purchase price if the sale was frustrated by third-party claims. On 24 September 2010, the plaintiffs sold the land to subsequent buyers for UGX 42,000,000. However, Nabawanuka Christine claimed beneficial interest in the estate, leading to cancellation of the plaintiffs' registration and reinstatement of the original plot to Nabawanuka Christine. The plaintiffs had to refund the purchase price and pay legal costs of UGX 10,053,500 to the subsequent buyers under a consent judgment in Civil Suit No. 232 of 2016. The plaintiffs then demanded refund of the purchase price, interest, and special damages from the defendants, who refused. At the time of the 2004 sale, the land was registered in Nabawanuka Christine's name, not in the names of the defendants or the estate. The defendants had no legal capacity to sell the land as they were not registered proprietors.
Issues
- Whether there was a valid contract between the plaintiffs and the defendants?
- Whether the defendants acted fraudulently and misrepresented material facts?
- What are the remedies available to the plaintiffs?
Orders
- Suit dismissed.
- Each party to bear their own costs.
Rules and key headnotes
Legislation cited (9)
Cases cited (8)
- Abendeyo Absolom v Amos Kaheru [1995] 111 KALR
- Dr. Diana Kanzira v Herbert Natukunda Rwanchwede (Civil Appeal No. 81 of 2020)
- Frederick Zaabwe v Orient Bank Ltd and Others (Supreme Court Criminal Appeal No. 04 of 2006)
- Draza Moses v Abdul Salam Saron Kamdad (Civil Suit No. 0016 of 2013)
- English and Scottish Mercantile Investment Co v Brunton [1892] 2 QB 700
- Baden v Societe Generale [1993] 1 WLR 509
- Uganda Posts & Telecommunications v Abraham Kirunda (Civil Appeal No. 208 of 2018)
- Sir John Bagire v Ausi Matovu (Civil Appeal No. 7 of 1996)
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.