Wakilii

Nakagwa v Tulsa Investments Limited (Civil Suit 978 of 2022)

High Court · [2023] UGCOMMC 275 · 2023 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 following defendant's failure to file defence
Decision
Judgment entered for the Plaintiff with recovery of contractual sum, interest, general damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The High Court Commercial Division held that the defendant breached its contractual obligation to supply Adseter Stickers after receiving full payment of UGX 120,000,000 from the plaintiff. The court found that the five receipts evidenced the payments made between September and November 2021 for goods that were never delivered. Following exparte proceedings after the defendant failed to file a defence, the court awarded the plaintiff recovery of the full contractual sum plus 18% interest per annum from filing date, UGX 5,000,000 in general damages for inconvenience and anguish, and costs.

Outcome

Judgment entered for the Plaintiff with recovery of contractual sum, interest, general damages and costs

Facts

In September 2021, the plaintiff approached the defendant and entered into a contract for the supply of Adseter Stickers, a paper product. Between 17 September 2021 and 11 November 2021, the plaintiff made five separate payments totalling UGX 120,000,000 as agreed consideration for the supply. The receipts issued by the defendant recorded each payment with the notation 'Not taken' in the comment column, indicating the goods were never collected or delivered. The defendant failed to supply the Adseter Stickers to the plaintiff and did not refund the money paid. The defendant was served by substituted service through the Daily Monitor on 1 August 2023 but failed to file a defence, resulting in interlocutory judgment.

Issues

  1. Whether there was a breach of contract to supply and or deliver goods to the plaintiff by the defendant?
  2. What remedies are available to the parties?

Orders

  • The Defendant to pay the Plaintiff the contractual amount of UGX 120,000,000.
  • Interest awarded on the above amount at 18% per annum from the date of filing this suit till payment in full.
  • The Defendant to pay the Plaintiff UGX 5,000,000 as general damages.
  • Costs of the suit to the Plaintiff.

Rules and key headnotes

Contract Law — Formation of Contract — Essential Elements
A contract is an agreement made with the free consent of parties with capacity to contract, for a lawful consideration and with a lawful object, with the intention to be legally bound.
Contract Law — Breach of Contract — Definition and Elements
A breach of contract occurs when a party neglects, refuses or fails to perform any part of its bargain or any term of the contract, written or oral, without a legitimate legal excuse, including where one or both parties fail to fulfill the obligations imposed by the terms of the contract.
Damages & Quantum — Compensation for Breach of Contract — Restitutio in Integrum
A plaintiff who suffers damage due to a wrongful act of the defendant must be put in the position he would have been in had he not suffered the wrong, and is entitled to full compensation for his losses under the principle of restitutio in integrum.
Damages & Quantum — Interest on Judgment Debt — Commercial Transactions
Interest on a judgment debt is awarded at the discretion of court which must be exercised judiciously considering all circumstances of the case, and where a defendant has retained a plaintiff's money for an extended period in a commercial arrangement, interest of 18% per annum from filing date until full payment is appropriate.
Damages & Quantum — Assessment of General Damages — Guiding Principles
In assessment of quantum of general damages, courts are guided by the value of the subject matter, the economic inconvenience that a party may have been put through, and the nature and extent of the breach or injury suffered, recognizing that damages are designed to compensate for an established loss and not to enrich an aggrieved party.
Civil Procedure — Exparte Proceedings — Burden of Proof
Where a matter proceeds exparte against a defendant who has failed to file a defence, the burden of proof remains on the plaintiff to prove the case on the balance of probabilities.

Legislation cited (5)

Cases cited (5)

Full judgment

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

Nakagwa v Tulsa Investments Limited (Civil Suit 978 of 2022) [2023] UGCommC 275 (13 December 2023)
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.