Obuntu Consulting Ltd v Plan Build Technical Services Ltd (HCT-00-CC-CS 173 of 2014)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
Held that the applicant was an agent of disclosed principals (the 1st and 2nd defendants) under a building contract. Clauses 3.1 and 3.1(a) of the agreement established that the consultant acted on behalf of the employer and was deemed to act for the employer. Where the principal is disclosed, the agent cannot be sued in respect of the principal's breach of contract. The suit against the applicant was dismissed with costs.
Outcome
Suit dismissed against the applicant as an agent of a disclosed principal
Facts
The respondent entered into a building contract on 6 December 2012 with the 1st and 2nd defendants for construction of a workshop/warehouse. The 1st defendant appointed the applicant as its consultant for the project. When the contract was signed, the applicant also signed and applied its seal with the words "sealed for and on behalf of Obuntu Consulting Ltd". The 1st and 2nd defendants allegedly fell into arrears in payment for work executed by the respondent. The respondent sued all three parties for breach of contract. The applicant filed an application contending that the plaint disclosed no cause of action against it because it was merely an agent of the 1st defendant, a disclosed principal, and could not be held liable for the principal's breach.
Issues
- Whether the plaint disclosed a cause of action against the applicant.
- Whether the applicant was an agent of a disclosed principal and therefore not liable to be sued.
- Whether the applicant signed the building contract in its personal capacity or as agent for the 1st and 2nd defendants.
Orders
- Application allowed.
- Suit against the applicant dismissed.
- Costs of the application awarded to the applicant.
Rules and key headnotes
Cases cited (7)
- Autogarage v Motokov (1971) EA 314
- Priamit Enterprises Ltd v Attorney General (Supreme Court Civil Appeal No. 1 of 2001)
- Kapeka Coffee Works Ltd and Another v NPART (Court of Appeal Civil Appeal No. 3 of 2000)
- Mulindwa Birimumaso v Government Central Purchasing Corporation (Court of Appeal Civil Appeal No. 3 of 2003)
- Totaram v Mistry Waryam Singh (Civil Appeal No. 15 of 1933)
- Friendship Container Manufacture Ltd v Mitchell Cotts (K) Ltd (2001) 2 EA 338
- Ram v Singh (1933) 5 ULR 76
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.