Mwesigye v Mercy Safari (Civil Appeal No. 0028 of 2006)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court dismissed the appeal and upheld the Chief Magistrate's finding that a valid contract of sale existed between the parties despite the absence of written documentation. The court held that under sections 4 and 5 of the Sale of Goods Act, oral contracts are enforceable where supported by evidence of delivery and part-payment. The appellant's acceptance of liability at a meeting attended by witnesses and his issuance of a cheque for part-payment constituted sufficient proof of the contract and bound him to pay the outstanding balance.
Outcome
Appeal dismissed. Appellant ordered to pay UGX 3,000,000 outstanding contract price plus UGX 3,000,000 general damages with interest at 6% per month and costs.
Facts
The respondent sued the appellant for breach of a contract for the sale of beans worth UGX 3,500,000 delivered on credit in October 2001. The appellant had paid UGX 500,000 after the suit was filed but denied any liability for the balance. At trial, the respondent's evidence was that beans were delivered from Kigali, Rwanda to Kabale Central Market through her daughter. When the appellant failed to pay, a meeting was convened at KADIO Hotel attended by two priests where the appellant allegedly accepted the debt and issued a cheque for UGX 500,000 as part-payment. The cheque was later dishonoured but cash was paid after the trial court order. The appellant denied attending the meeting and the transaction, claiming the payment related to motor vehicle repair and fuel costs. The trial magistrate found for the respondent and awarded UGX 3,000,000 outstanding balance plus UGX 3,000,000 nominal damages.
Issues
- Whether the plaintiff supplied beans to the defendant worth 3,500,000 shillings.
- Whether there was a valid contract between the parties.
- What remedies are available to the parties.
Orders
- Appeal dismissed.
- Order for payment of UGX 3,000,000 being the outstanding consideration for the sale of goods is upheld.
- General damages of UGX 3,000,000 is upheld.
- The appellant shall pay the respondent costs of the appeal and in the lower court.
- The decretal sum shall attract interest at the rate of 6% per month from date of judgment until date of full payment.
Rules and key headnotes
Legislation cited (2)
- Sale of Goods Act Cap 82 s.5
- Sale of Goods Act Cap 82 s.4
Cases cited (4)
- Pandya v R [1957] EA 336
- Selle & Others v Associated Motor Boat Company Ltd & Others [1968] EA 123
- Coghlan v Cumberland [1898] Ch 704
- Nsubuga v Kavuma (1978) HCB 308
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.