Wakilii

Tony Jones Ltd v Paul Bakashabaruhanga (Civil Suit No 616 of 1995) (Civil Suit No 616 of 1995)

High Court · [2009] UGHC 95 · 2009 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 and commission arising from property sale
Decision
Judgment for Plaintiff with damages, interest and costs awarded

Observed later treatment

No later-treatment classification is recorded for this judgment.

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AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

A real estate agent instructed to sell or let property with an option to purchase is entitled to commission when the option is exercised, even if the agent did not participate in final purchase negotiations. The agent's introduction of a tenant who becomes a purchaser under an option negotiated by the agent completes the mandate and triggers entitlement to commission on the sale.

Outcome

Judgment for Plaintiff with damages, interest and costs awarded

Facts

Tony Jones Limited, a real estate agency, was instructed by Paul Bakashabaruhanga to find a buyer for his property at Plot 36 Luthuli Drive, Bugolobi. The Plaintiff approached Netherlands Development Organisation (SNVO), which initially declined to purchase but offered to rent the property at US$1,500 per month with an option to purchase at US$200,000. The Plaintiff negotiated the tenancy agreement including the option clause. After paying one year's rent in advance, SNVO exercised the option to purchase. The Defendant paid the Plaintiff commission of US$1,500 on the tenancy but refused to pay commission on the subsequent sale, contending the Plaintiff's mandate ended with securing the tenancy. The Plaintiff sued for the balance of 10% commission on the sale price.

Issues

  1. Whether the Defendant contracted the Plaintiff to sell his property at Plot 36 Luthuli Drive for a commission.
  2. Whether the Plaintiff sold the said property for a commission.
  3. Whether the Plaintiff is entitled to the remedies sought.

Orders

  • Judgment entered for the Plaintiff.
  • Special damages of US$19,500 awarded to the Plaintiff.
  • General damages of UGX 2,500,000 awarded to the Plaintiff.
  • Interest at court rate on special and general damages from the date of judgment until payment in full.
  • Costs of the suit awarded to the Plaintiff.

Rules and key headnotes

Agency — Estate Agents — Commission — Let with Option to Purchase
Where an estate agent is instructed to sell or let property and secures a tenant with an option to purchase, the agent is entitled to commission on the sale when the option is exercised, as the introduction of the person who becomes the purchaser falls within the scope of the original mandate.
Agency — Commission — Right to Payment — Introduction of Purchaser
A house agent employed to let or sell a house is entitled to commission on the introduction of a person who subsequently becomes a tenant or purchaser, even where the agent does not participate in final negotiations, provided the eventual transaction flows from the agent's introduction and initial negotiations.
Agency — Termination of Mandate — Effect of Partial Performance
Payment of commission on a tenancy transaction does not automatically terminate an agent's mandate where the tenancy agreement includes an option to purchase negotiated by the agent. The option to purchase forms part of a single transaction securing a buyer as originally instructed.
General Damages — Breach of Contract — Presumption
Where there is a breach of contract, general damages are presumed and may be awarded to compensate for inconvenience, anxiety, and the time and expense incurred by the innocent party in pursuing their rights through legal proceedings.

Legislation cited (1)

Cases cited (5)

  • Miller v Radford [1903] 19 Times L.R. 576
  • Luxor (Eastbourne) Ltd v Cooper [1941] A.C. 108
  • Alfa Insurance Consultants Limited v Empire Insurance Group (Civil Appeal No. 9 of 1995)
  • Hajji Mutekanga v Equator Growers (U) Limited (Civil Appeal No. 7 of 1995)
  • Akisoferi Ogola v Akika Othieno & Another [1997] HCB 53

Full judgment

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

Tony Jones Ltd v Paul Bakashabaruhanga (Civil Suit No 616 of 1995) (Civil Suit No 616 of 1995) [2009] UGHC 95 (10 June 2009)
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.