Wakilii

Ochan v Odur (Civil Appeal No. 50 of 2019)

High Court · [2019] UGHC 31 · 2019 Appeal Partly Allowed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Civil appeal from Magistrate's Court judgment ordering refund of purchase price and compensation for building
Decision
Magistrate's judgment upheld in part; general damages award set aside; other orders including refund of purchase price and compensation for building affirmed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that the trial court correctly found an oral contract of sale based on the course of performance and conduct of the parties, including inspection of multiple plots before agreement and construction on the land. The appellant's repudiatory breach by rescinding the sale entitled the respondent to restitution for unjust enrichment in the form of the objective market value of his building. However, the award of general damages was erroneous where interest had been awarded on the monetary claim. Appeal allowed in part; general damages set aside but all other orders upheld.

Outcome

Magistrate's judgment upheld in part; general damages award set aside; other orders including refund of purchase price and compensation for building affirmed

Facts

In 2007, the appellant approached the respondent seeking to sell land to raise school fees. The respondent inspected three plots offered by the appellant and selected plot 11 Mama Cave Close Road. They agreed on a purchase price of shs. 3,000,000/= payable in instalments for school fees. The respondent paid the full amount and began constructing a building in December 2007. In early 2008, the appellant changed her mind and sought to rescind the sale. On 12 April 2008, she signed a written agreement undertaking to refund the purchase price and compensate the respondent for the building he had erected. The appellant failed to honour this undertaking. The respondent sued for specific performance or, alternatively, refund and compensation. The Magistrate's Court found a valid sale and ordered refund of the purchase price with interest, payment of the building's value (shs. 6,846,200/=), and general damages of shs. 5,000,000/=. The appellant appealed.

Issues

  1. Whether the transaction between the parties was a sale of land or an unsecured loan.
  2. Whether the trial court properly evaluated the evidence on record.
  3. Whether the appellant should compensate the respondent for developments on the land where the respondent has been in occupation and collecting rent.
  4. Whether the award of general damages in addition to interest was proper.

Orders

  • Appeal succeeds only in part.
  • Award of shs. 5,000,000/= as general damages set aside.
  • Interest to run from 12 April 2008 on the refund amounts.
  • Appellant ordered to pay shs. 3,000,000/= as refund of purchase price with interest at 12% from 12 April 2008 until payment in full.
  • Appellant ordered to pay shs. 6,846,200/= as compensation for the building.
  • Appellant to bear half the costs of the appeal.

Rules and key headnotes

Contract Law — Formation — Oral Contracts — Proof of Terms and Character
When a contract is not reduced into writing, its character and terms may be inferred from the conduct of the parties that is contemporaneous with its creation, including course of performance and course of dealing between the parties.
Evidence — Cross-Examination — Failure to Challenge Material Evidence
An omission or neglect to challenge the evidence in chief on a material or essential point by cross-examination leads to an inference that the evidence is accepted, subject to its being assailed as inherently incredible or possibly untrue.
Contract Law — Remedies — Unjust Enrichment — Measure of Restitution
In a claim for unjust enrichment, it is the defendant's gain that is ascertained rather than the plaintiff's loss, by means of objective and subjective evaluation. The starting point in valuing enrichment is the objective market value of the property obtained, being the price which a reasonable person in the defendant's position would have had to pay for the property.
Contract Law — Breach — Repudiatory Breach — Consequences
Where a party repudiates a contract after the other party has conferred a benefit in performance, the repudiating party is bound to restore the performing party to their previous position and is liable for restitution of the benefit received, valued at the date of receipt.
Contract Law — Remedies — Damages and Interest — Election Between Remedies
The remedy for late payment of a monetary claim is ordinarily an award of interest. Where interest has been awarded on a debt, an additional award of general damages for the same breach is improper and constitutes double recovery.
Civil Procedure — Appeals — Grounds of Appeal — Requirements for Specificity
A memorandum of appeal must set forth concisely and under distinct heads the specific grounds of objection to the decision appealed from. General grounds that allow for a fishing expedition will be struck out.

Legislation cited (2)

Cases cited (11)

  • Father Nanensio Begumisa and three Others v Eric Tiberaga (SCCA No. 17 of 2000)
  • Lovinsa Nankya v Nsibambi [1980] HCB 81
  • Katumba Byaruhanga v Edward Kyewalabye Musoke (Civil Appeal No. 2 of 1998)
  • Attorney General v Florence Baliraine (Civil Appeal No. 79 of 2003)
  • Habre International Co Ltd v Kasam and others [1999] 1 EA 115
  • Pioneer Construction Co Ltd v British American Tobacco (HCCS No. 209 of 2008)
  • R v Hart (1932) 23 Cr App R 202
  • James Sawoabiri and another v Uganda (SC Criminal Appeal No. 5 of 1990)
  • Benedetti v Sawiris [2013] UKSC 50
  • McDonald v Coys of Kensington [2004] EWCA Civ 47
  • BP Exploration Co (Libya) Ltd v Hunt (No 2) [1979] 1 WLR 783

Full judgment

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

Ochan v Odur (Civil Appeal No. 50 of 2019) [2019] UGHC 31 (29 August 2019)
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.