Othieno Richard v Obel Stella (LD Civil Appeal No. 029 of 2023)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The High Court held that a contract entered into by a minor through a power of attorney is void ab initio, not merely voidable. A minor lacks capacity to contract and cannot grant a valid power of attorney to sell land. Only a court-appointed guardian acting in the minor's best interests may enter land transactions on behalf of a minor. Where a lease had expired before the purported sale, no equitable interest arose that could be transferred. The illegalities rendered the entire transaction a nullity. The appeal was allowed and the trial court's decision set aside.
Outcome
Lower court judgment set aside; ownership dispute resolved in favour of appellant
Facts
Hela Textiles Limited purportedly purchased plot 3 Oguti Road Tororo in 1996 from Ogweng Arrojjo, who was nine years old at the time. The sale was executed by Arrojjo's father acting under a power of attorney granted by the minor. The original lease had run from 1991 to 1993 and had expired before the 1996 sale. Hela Textiles paid fees and applied for a certificate of title. The respondent Obel Stella, as successor to Hela Textiles, claimed equitable ownership. In 2004, Mwanje Richard (Arrojjo's father) sold the land to the appellant Othieno Richard. The Tororo District Land Board subsequently granted a lease to the appellant. The respondent sued, claiming she was the equitable owner. The trial magistrate found in favour of the respondent, holding she had acquired an equitable interest as a tenant at sufferance which was validly transferred to Hela Textiles.
Issues
- Whether a contract entered into by a minor through a power of attorney is void or voidable
- Whether the trial magistrate properly evaluated the evidence regarding ownership of the suit land
- Whether the respondent acquired an equitable interest capable of being sold despite the expired lease
Orders
- Appeal allowed.
- Decision and orders of the lower court set aside.
- Judgment entered for the appellant with costs.
Rules and key headnotes
Legislation cited (3)
- Civil Procedure Code Order 12 Rule 6
- Convention on the Rights of the Child 1989 Article 12
- Contract Act 1872
Cases cited (6)
- Kajubi versus Mubiru
- Edwards versus Carter
- Nantume Shamira v Kampala City Council & 2 Others [2009] UGCommC 9
- Mathai Mathew vs. Joseph Mary Alias Marykutty Joseph (2015) 5 SCC 622
- Alex Agandara V Etoma Francis HCSS NO 7 2021
- Makula International versus Cardinal Emmanuel Nsubuga Wamala
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.