Wakilii

Sajjabi v Heng Rong International Limited (Civil Suit 991 of 2020)

High Court · [2022] UGCOMMC 188 · 2022 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 with partial consent judgment
Decision
Plaintiff awarded contractual interest and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that where parties agree to a surcharge of 50% interest in case of breach, such contractual interest is enforceable. The defendant having paid the principal sum of USD 175,000 in April/May 2022 when payment was due by October 2017, the court awarded interest at 50% on that sum. Costs were awarded to the plaintiff as the parties had agreed that costs follow the cause.

Outcome

Plaintiff awarded contractual interest and costs

Facts

The parties entered into an agreement dated 4 September 2017 for the sale of property. Clause 6 of the agreement provided that in case of breach, the seller would indemnify the buyer with a surcharge of 50% interest on monies paid. Clause 3 required all payments to be made by 4 October 2017. The defendant paid the principal sum of USD 175,000 in April or May 2022, several years after the contractual deadline. The parties entered a partial consent judgment acknowledging the principal sum and agreeing that costs would follow the cause. The remaining issue before the court was whether the plaintiff was entitled to interest and costs.

Issues

  1. Whether the Plaintiff is entitled to interest on the principal amount agreed in the partial consent judgment.
  2. Whether the Plaintiff is entitled to costs as prayed.

Orders

  • Interest of 50% awarded on the sum of USD 175,000 paid by the Defendant to the Plaintiff during April/May 2022.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Interest — Contractual Interest — Enforcement of Agreed Surcharge Rate
Interest can only be claimed if based on an agreement or by statute. Where parties agree to a surcharge interest rate in the event of breach, the court will enforce that contractual term.
Contract Law — Breach of Contract — Failure to Pay by Contractual Deadline
A party who fails to make payment by the contractual deadline is liable for contractual consequences including agreed interest charges.
Civil Procedure — Costs — Agreement Between Parties
Where parties have agreed that costs follow the cause, the court's duty is to enforce the contractually agreed terms and award costs accordingly to the successful party.

Cases cited (1)

  • 891[9 it Construction v AG. Civil Suit 577/2005

Full judgment

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

Sajjabi v Heng Rong International Limited (Civil Suit 991 of 2020) [2022] UGCommC 188 (29 September 2022)
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.