Wakilii

Tour & Travel Centre Limited v Kizza (Civil Suit 1040 of 2022)

High Court · [2024] UGCOMMC 166 · 2024 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 supply of air tickets on credit
Decision
Judgment entered in favour of the Plaintiff for the full amount claimed plus general damages and costs

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Held that where a defendant enters an oral contract for supply of air tickets on credit and fails to pay outstanding arrears despite multiple demands, the plaintiff is entitled to general damages for financial loss, hardship, and disillusionment caused by the defendant's breach of contract and refusal to communicate. The court awarded UGX 15,000,000 as general damages in addition to the liquidated debt and interest.

Outcome

Judgment entered in favour of the Plaintiff for the full amount claimed plus general damages and costs

Facts

The Plaintiff, a tour and travel agency, supplied air tickets on credit to the Defendant, a sole proprietor operating as Kenkom, and his agents. Between January 2017 and February 2019, the Plaintiff purchased air tickets for international travel at the Defendant's request for the benefit of the Defendant and his agents, including Trek & Travel Shop. By October 2019, the Defendant owed USD 12,263 (USD 2,715 through Kenkom and USD 9,548 through Trek & Travel Shop) plus UGX 4,373,869 in accrued interest. Despite several demands and reminders, the Defendant failed to pay. Summons and plaint were served but the Defendant did not file a defence. Default judgment was entered for the liquidated sums and the matter proceeded ex parte for formal proof of general damages.

Issues

  1. Whether the Plaintiff is entitled to the general damages sought.

Orders

  • The defendant shall pay USD 12,263 and UGX 4,373,869 to the Plaintiff being money due and owing for supply of air tickets.
  • The Defendant shall pay interest on the sums in (i) above at the rate of 16% per annum from 19th October 2019 until payment in full.
  • The Defendant shall pay general damages in the sum of UGX 15,000,000 to the Plaintiff.
  • Costs of the suit are awarded to the Plaintiff.

Rules and key headnotes

Contract Law — Oral Contracts — Enforceability — Breach by Non-Payment
Where parties enter into an oral contract for the supply of goods or services on credit, the contract is binding and the debtor has a duty to reimburse the creditor for goods supplied.
Damages & Quantum — General Damages — Assessment Principles — Compensatory Nature
The overriding principle governing the assessment of damages is that the injured party should be restored, as far as money can do it, to the correct position he or she would have been in had the injury or damage not occurred. Damages are compensatory in nature and should neither be used to punish the defendant nor to confer a windfall on the claimant.
Damages & Quantum — General Damages — Factors in Assessment — Financial Hardship and Disillusionment
In assessing general damages, a court should be guided by the value of the subject matter, the economic inconvenience that the plaintiff may have been put through, and the nature and extent of the injury suffered. Where a debtor refuses to pay outstanding arrears and cuts off all communication with the creditor, the creditor is entitled to general damages for financial loss, hardship, inconvenience, and disillusionment.
Contract Law — Good Faith — Duty to Communicate with Creditor — Breach by Silence
When a person takes goods or services from another person on credit, it is very important to keep the communication channels open. The debtor should endeavor to remain in touch with the creditor at all times. Even if the debtor does not yet have all the money to repay the debt as agreed, the debtor should at least communicate with the creditor and say so. A debtor who ignores demands and reminders and goes into hiding or hibernation acts in bad faith.

Legislation cited (1)

Cases cited (4)

  • Nasif Mujib and Another v Attorney General (High Court Civil Suit No. 160 of 2014)
  • Opia Moses v Chukia Lumago Roselyn and Others (High Court Civil Suit No. 0022 of 2013)
  • Uganda Commercial Bank v Kigozi [2002] 1 EA 305
  • Bank of Uganda v Fred William Masaba and 5 Others (Supreme Court Civil Appeal No. 3 of 1998)

Full judgment

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

Tour & Travel Centre Limited v Kizza (Civil Suit 1040 of 2022) [2024] UGCommC 166 (31 May 2024)
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.