Wakilii

Walugembe v Habib Kagimu (Civil Suit 84 of 1997)

High Court · [1998] UGHCLD 1 · 1998 Judgment for Plaintiff AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
First instance civil suit for balance of purchase price and damages arising from disputed land and machinery sale agreements
Decision
Judgment for plaintiff with orders for payment of balance purchase price and special damages; defendant's counter-claim dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The court held that the purchase price for the land was shs. 180,000,000/=, and the subsequent variation deed created a separate agreement for machinery at shs. 60,000,000/=, not a modification of the land price. The defendant breached the sale agreement by failing to pay the balance of shs. 70,000,000/=. The plaintiff's eviction was unlawful as there was no tenancy agreement and the plaintiff remained in possession awaiting payment. Judgment was entered for the plaintiff for the balance of the purchase price and special damages for property lost during eviction.

Outcome

Judgment for plaintiff with orders for payment of balance purchase price and special damages; defendant's counter-claim dismissed

Facts

The plaintiff agreed to sell land at Kawempe (Block 208 Plot 1129) to the defendant for shs. 180,000,000/= by agreement dated 15 July 1996. The defendant paid shs. 100,000,000/= to Uganda Development Bank to release the certificate of title and a further shs. 10,000,000/=, leaving a balance of shs. 70,000,000/= payable in instalments. A subsequent variation deed dated 26 August 1996 created a separate agreement for the sale of machinery on the premises for shs. 60,000,000/=, which was paid in full. The plaintiff remained in possession awaiting payment of the balance. Instead of paying, the defendant obtained a distress warrant from the Chief Magistrate's Court alleging the plaintiff was a tenant in arrears of rent. The plaintiff was evicted and claimed property worth over shs. 50,000,000/= was lost in the process.

Issues

  1. What was the agreed purchase price?
  2. What was the intention of the parties when they executed the variation deed and for what consideration was the sum of shs. 60,000,000/= paid?
  3. Whether there was breach of the agreement and if so by which party?
  4. Whether the plaintiff was lawfully evicted from the premises.
  5. Whether there is still a balance owing on the purchase price and if so, how much?
  6. Whether the plaintiff is entitled to the remedies sought.
  7. Whether the defendant is entitled to the prayers in the counter-claim.

Orders

  • Judgment entered in favour of the plaintiff against the defendant.
  • Defendant to pay shs. 70,000,000/= being the balance of the purchase price.
  • Defendant to pay shs. 50,168,000/= as special damages.
  • No interest awarded as it was not prayed for in the plaint.
  • Plaintiff awarded taxed costs of the suit.
  • Counter-claim dismissed with costs to the plaintiff.

Rules and key headnotes

Contract Law — Interpretation of Contracts — Effect of Variation Deed
Where parties execute a variation deed after an initial sale agreement under which substantial payments have already been made, the variation deed creates a separate agreement for additional items and does not modify the original purchase price unless such intention is clearly expressed.
Contract Law — Breach of Contract — Failure to Pay Purchase Price
A purchaser breaches a sale agreement by failing to pay the balance of the purchase price within the agreed time period, creating liability for the outstanding amount.
Land & Property — Unlawful Eviction — Vendor Remaining in Possession Pending Payment
Where a vendor remains in possession of sold premises awaiting payment of the balance of the purchase price, the purchaser cannot lawfully evict the vendor by obtaining a distress warrant on the false basis of a tenancy agreement where no such tenancy exists.
Damages & Quantum — Special Damages — Proof Required
Special damages must be specifically pleaded and strictly proved by the party claiming them as being the direct result of the wrongs complained of, and can be established through production of invoices showing the cost of replacing lost property.

Full judgment

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

Walugembe v Habib Kagimu (Civil Suit 84 of 1997) [1998] UGHCLD 1 (22 July 1998)
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.