Wakilii

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

High Court · [2023] UGCOMMC 274 · 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; Defendant to pay contractual sum, interest, general damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

Where a plaintiff paid UGX 120,000,000 for the supply of goods under a contract and the defendant neither supplied the goods nor refunded the money, the court held that the defendant breached the contract. The plaintiff was entitled to recovery of the full contractual amount, interest at 18% per annum from filing, and general damages of UGX 5,000,000 for inconvenience and psychological anguish suffered due to the breach.

Outcome

Judgment entered for the Plaintiff; Defendant to pay contractual sum, interest, general damages and costs

Facts

The Plaintiff approached the Defendant and entered into a contract for the supply of Adseter Stickers, a paper product. Between September and November 2021, the Plaintiff made payments totaling UGX 120,000,000 to the Defendant on various dates (17th, 20th, 21st, 22nd September 2021, 20th October 2021, and 11th November 2021). Payment was evidenced by five receipts. The Defendant failed to supply the goods as agreed and did not refund the money. The Defendant did not file a Written Statement of Defence despite being served by substituted service. Interlocutory judgment was entered and the matter proceeded exparte for formal proof.

Issues

  1. Whether there was a breach of contract to supply and or deliver goods to the plaintiff by the defendant?
  2. Whether the Plaintiff is entitled to the remedies sought?

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 Plaintiffs UGX 5,000,000 as general damages.
  • Costs of the suit to the Plaintiff.

Rules and key headnotes

Contract Law — Formation — Essential Elements
A contract under the Contracts Act 2010 s.10 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 — Definition
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.
Contract Law — Remedies — Compensation for Breach
Under the Contracts Act 2010 s.61, a party who suffers loss due to breach of contract is entitled to compensation and must be put in the position they would have been in had they not suffered the wrong.
Contract Law — Damages — Interest — Rate and Period
Interest on contractual amounts is awarded at the court's discretion under the Civil Procedure Act Cap 71 s.26(1) and must be exercised judiciously considering all circumstances, including the commercial nature of the transaction and the period the defendant retained the plaintiff's money.
Contract Law — Damages — General Damages — Assessment
In assessing general damages for breach of contract, courts apply the principle of restitutio in integrum and are guided by the value of the subject matter, the economic inconvenience suffered, and the nature and extent of the breach. Damages are designed to compensate for established loss, not to enrich the aggrieved party.

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 274 (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.