Wakilii

Ssekiranda v Zuure (H.C.C.S. NO. 24 OF 1992)

High Court · [1994] UGHCCD 4 · 1994 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 arising from supply of maize and cash advance, initially filed under summary procedure
Decision
Judgment entered in favour of plaintiff for the full amount claimed with interest

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the defendant was indebted to the plaintiff for maize supplied and cash advanced. Payment by a third party purchaser was not a condition precedent to the defendant's obligation to pay. The third party purchaser was not privy to the contract between plaintiff and defendant. Interest at the agreed rate was awarded from the date claimed.

Outcome

Judgment entered in favour of plaintiff for the full amount claimed with interest

Facts

The plaintiff supplied maize to the defendant in two transactions in June 1992 totalling 8,651,170/-, of which 8,000,000/- was paid leaving a balance of 651,170/-. On 16 June 1992, he supplied further maize worth 7,801,200/-. On 13 July 1992, he advanced cash of 2,550,000/-. The defendant issued a cheque for 11,000,000/- which was dishonoured. The defendant contended she had sold maize flour jointly with the plaintiff to a third party, Yasin Sanad, who issued a cheque that bounced, and that she could only pay the plaintiff after being paid by Sanad. The defendant also claimed she had repaid 2,000,000/- of the cash advance.

Issues

  1. Whether or not the defendant is indebted to the plaintiff.
  2. Whether or not Yasin Sanad is a privy to the contract between the plaintiff and the defendant.
  3. Whether the plaintiff is entitled to interest of 450,000/- per month as claimed.

Orders

  • Judgment entered for the plaintiff against the defendant for a sum of 11,000,000/-.
  • Interest awarded at the agreed rate of 450,000/- per month from July 1992 until payment in full.
  • Costs of the suit awarded to the plaintiff.

Rules and key headnotes

Contract Law — Formation and Performance — Completion of Contract — Payment Obligations
A contract for the sale of goods is completed the moment the buyer takes delivery of the goods, and the buyer becomes liable to pay for those goods irrespective of how the buyer obtains funds for payment or whether the buyer successfully resells the goods to a third party.
Contract Law — Conditional Obligations — Conditions Precedent — Payment
Where parties enter into a contract for the supply of goods, payment by the buyer is not conditional upon the buyer receiving payment from a third party purchaser unless such condition was expressly contemplated and agreed by the parties at the time of contract formation.
Contract Law — Privity of Contract — Third Parties
A third party who purchases goods from a buyer after the original contract of sale has been concluded is not privy to the contract between the original seller and buyer, even if the original seller was aware of the subsequent transaction.
Civil Procedure — Pleadings — Annexures to Pleadings — Evidential Value
An annexure to pleadings becomes part of the pleadings and may serve as sufficient evidence of the matters stated therein.
Contract Law — Interest — Commercial Transactions — Entitlement
In commercial transactions, a party is entitled to interest on money held up by another party, reflecting the commercial nature of the transaction and the expectation that money will earn a return, regardless of whether the claimant borrowed the money or held it as assets.

Legislation cited (3)

Cases cited (1)

  • African Overseas Trading Co v Tansukha S Acharya [1963] EA 468

Full judgment

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

Ssekiranda v Zuure (H.C.C.S. NO. 24 OF 1992) [1994] UGHCCD 4 (11 July 1994)
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.