Wakilii

Registered Trustees of Joint Medical Stores v Gilb Investments Ltd and Another (Civil Suit No. 632 of 2018)

High Court · [2019] UGCOMMC 242 · 2019 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for recovery of debt following breach of contract of sale of goods, proceeded ex parte after defendants failed to file defence
Decision
Judgment entered for plaintiff; defendants ordered to pay jointly and severally UGX 186,553,219.74 as special damages, UGX 35,000,000 as general damages, interest on general damages at court rate from judgment, and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that a valid contract of sale of goods existed between the parties. The defendants breached the contract by failing to pay UGX 183,553,219.74 for medical products supplied. The 2nd defendant assumed joint and several liability by executing a Deed of Acknowledgement of Indebtedness. The plaintiff was awarded special damages of UGX 186,553,219.74, general damages of UGX 35,000,000, and interest on general damages at court rate from judgment.

Outcome

Judgment entered for plaintiff; defendants ordered to pay jointly and severally UGX 186,553,219.74 as special damages, UGX 35,000,000 as general damages, interest on general damages at court rate from judgment, and costs

Facts

Between February and August 2016, the plaintiff supplied medical products worth UGX 213,272,096 to the 1st defendant on credit. The 1st defendant issued 16 cheques in payment which all dishonoured due to insufficient funds. After notice of dishonour, the defendants remitted partial payments totalling UGX 29,718,876, leaving UGX 183,553,219.74 outstanding. On 26 September 2016, both defendants executed a Deed of Acknowledgement of Indebtedness whereby the 2nd defendant bound himself jointly and severally liable. The defendants undertook to discharge the debt within seven months but made no further payments. The defendants failed to file a defence and the matter proceeded ex parte.

Issues

  1. Whether or not there was a valid contract of sale of goods between the plaintiff and the 1st defendant.
  2. Whether or not the 1st defendant breached the contract of sale of goods.
  3. Whether or not the 1st and 2nd defendants are jointly and severally liable for the debt.
  4. Whether or not the plaintiff is entitled to the remedies sought.

Orders

  • Special damages of UGX 186,553,219.74 awarded to the plaintiff.
  • General damages of UGX 35,000,000 awarded to the plaintiff.
  • Interest on general damages awarded at court rate from the date of judgment till payment in full.
  • Costs of the suit awarded to the plaintiff.
  • The defendants are to pay jointly and severally.

Rules and key headnotes

Contract Law — Formation — Elements of Valid Contract
For a contract to be valid and legally enforceable there must be capacity to contract, intention to contract, consensus ad idem, valuable consideration, legality of purpose, and sufficient certainty of terms.
Contract Law — Sale of Goods — Definition
A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in the goods to the buyer for a money consideration called a price.
Contract Law — Breach — Failure to Pay Purchase Price
A breach of contract occurs when one or both parties fail to fulfil the obligations imposed by the terms of the contract. Failure to pay for goods supplied under a contract of sale constitutes a breach of contract.
Contract Law — Acknowledgement of Debt — Joint and Several Liability
Where a third party executes a deed of acknowledgement of indebtedness and undertaking to pay, that party assumes the status of a debtor by agreement and becomes jointly and severally liable with the original debtor for discharge of the debt.
Contract Law — Consideration — Forbearance to Sue
An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable. Forbearance to sue an original debtor constitutes valid consideration for a deed of acknowledgement of indebtedness.
Damages & Quantum — Special Damages — Proof
Even where interlocutory judgment has been entered, the burden of proof rests on the plaintiff and the standard of proof is on the balance of probabilities. Special damages must be proved exactly, on the balance of probabilities.
Damages & Quantum — General Damages — Inconvenience and Loss of Profits
It is settled law that substantial physical inconvenience or even inconvenience which is not physical, and discomfort caused by breach of contract, will entitle the plaintiff to general damages.

Legislation cited (6)

Cases cited (14)

  • Muyingo John Paul v Abasi Lugemwa & Ors (High Court Civil Suit No. 24 of 2018)
  • Kasifa Namusisie & 2 Ors v Francis M. K Ntabaazi (Supreme Court Civil Appeal No. 04 of 2005)
  • Uganda Telecom Ltd v Tanzanite Corporation (Court of Appeal No. 7 of 2004)
  • Mutekanga vs. Equator Growers (U) LTD [1995 - 1998] EA 20
  • Robbialac Paints (U) Ltd vs. KB Construction Ltd, [1976] HCB 49
  • PICA Printery & Stationery Ltd v Pallisa District Local Government (High Court Civil Suit No. 456 of 2006)
  • Arvinel Kato v Anor (High Court Civil Suit No. 394 of 2011)
  • Rwantale vs. Rwabutoga [1988 - 1990] HCB 100
  • Greenboat Entertainment Ltd v City Council of Kampala (High Court Civil Suit No. 0580 of 2003)
  • Attorney General vs. Blake, [1998] 1 All. ER 376
  • Stroms Vs Hutchinson [1905] AC 515
  • Tate & Lyle Food and Distribution Ltd vs. Greater London Council and another [1981] 3 All ER 716
  • Groflin East Africa Fund LLC v Investec Uganda Ltd & 2 Ors (High Court Civil Suit No. 374 of 2011)
  • Livingstone Vs. Rawyards Coal Co. (1880) 5 App Cas 25 at 39

Full judgment

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

Registered Trustees of Joint Medical Stores v Gilb Investments Ltd and Another (Civil Suit No. 632 of 2018) [2019] UGCommC 242 (11 November 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.