Interpretation
In this Act, unless the context otherwise requires
"acceptance" means an assent to an offer made by a person to whom the offer is made;
"agreement" means a promise or a set of promises forming the consideration for each other;
"coercion" means the commission or threatening to commit any act forbidden under any law or the unlawful detaining or threatening to detain any property, to the prejudice of any person with the intention of causing any person to enter into an agreement;
"consent" means agreement of two or more persons obtained freely, upon the same thing in the same sense;
"consideration" means a right, interest, profit or benefit accruing to one party or forbearance, detriment, loss or responsibility given, suffered or undertaken by the other party;
"consideration for a promise" means where, at the desire of a promisor, a promisee or any other person does or abstains from doing or promises to do or to abstain from doing something;
"contingent contract" means a contract to do something or not to do something where an event, collateral to a contract, does or does not happen;
"contract" means an agreement enforceable by law as defined in section 9 ;
"currency point" has the value assigned to it in the Schedule to this Act;
"documents of title to goods" includes any bill of lading, dock warrant, warehouse keeper's certificate, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of possession or control of goods or which authorises or purports to authorise, either by endorsement or by delivery, the possessor of the document to transfer or receive goods represented by the document;
"mercantile agent" means a person who in the ordinary course of his or her business, has authority either to sell goods, or to consign goods for the purposes of sale, or to buy goods or raise money on the security of goods;
"Minister" means the Minister responsible for justice;
"misrepresentation" means-
a positive assertion made in a manner which is not warranted by the information of the person who makes it or an assertion which is not true, though the person who makes it believes it to be true;
any breach of duty which without an intent to deceive, gains an advantage to the person who commits it or anyone who claims under that person by misleading another person to his or her prejudice or to the prejudice of any one claiming under that other person; or
causing, however innocently, a party to an agreement, to make a mistake as to the substance of the thing which is subject of the agreement;
"offer" means the willingness to do or to abstain from doing anything signified by a person to another, with a view to obtaining the assent of that other person to the act or abstinence;
"promise" means an offer that is accepted;
"promisee" means the person who accepts an offer;
"promisor" means the person who makes an offer;
"reciprocal promises" mean promises that form the consideration or part of the consideration for each other;
"void agreement" means an agreement that is not enforceable by law;
"voidable contract" means an agreement which is enforceable by law at the option of a party to a contract but not at the option of the other party and a contract which ceases to be enforceable by law and which becomes void when it ceases to be enforceable.
Section analysis Source linked
This section supplies the definitions or statutory meaning governing “Interpretation”.
“In this Act, unless the context otherwise requires "acceptance" means an assent to an offer made by a person to whom the offer is made;”
Use this definition when interpreting other provisions that employ the language addressed by “Interpretation”.
Operative requirements extracted from the consolidated text.
- "agreement" means a promise or a set of promises forming the consideration for each other;
- "coercion" means the commission or threatening to commit any act forbidden under any law or the unlawful detaining or threatening to detain any property, to the prejudice of any person with the intention of causing any person to enter into an agreement;
- "consent" means agreement of two or more persons obtained freely, upon the same thing in the same sense;
- "consideration" means a right, interest, profit or benefit accruing to one party or forbearance, detriment, loss or responsibility given, suffered or undertaken by the other party;
- "consideration for a promise" means where, at the desire of a promisor, a promisee or any other person does or abstains from doing or promises to do or to abstain from doing something;
- "contingent contract" means a contract to do something or not to do something where an event, collateral to a contract, does or does not happen;
- "contract" means an agreement enforceable by law as defined in section 9;
- "currency point" has the value assigned to it in the Schedule to this Act;
11 further items remain in the statutory text above.
Express propositions in source-matched passages from judgments citing this section.
34. Section 1 of the Contracts Act, Cap 284 defines "consideration" to mean a right, interest, profit or benefit accruing to one party or forbearance,Naswif Katongole and Another v Sir Apollo Kaggwa Primary School (Civil Suit No. 141 of 2014) [2026] UGHCCD 216 (14 July 2026)
Court level is shown; confirm that the quoted proposition forms part of the ratio before treating it as binding.
Consideration, defined under Section 1 of the Contracts Act, means a 20 right, interest, profit or benefit accruing to one party or forbearance, detriment, loss or responsibility given, suffered or undertaken by the other party.Meera Investments Limited v FBW (U) Limited and Others (Civil Suit 723 of 2020) [2026] UGCommC 215 (3 April 2026)
Court level is shown; confirm that the quoted proposition forms part of the ratio before treating it as binding.
Section 1 of the Contracts Act, (now Cap 284) which defines aNdyamuhaaki v Ninsiima and Another (HCT-01-LD-CA-0058-2017) [2025] UGHC 442 (11 June 2025)
Court level is shown; confirm that the quoted proposition forms part of the ratio before treating it as binding.
No section-specific amendment note or instrument-level amendment history appears in this consolidation.