Breach of contract is a common issue in Uganda`s legal system, and there are numerous case laws on this topic. These case laws provide a legal precedent for the resolution of contract disputes and guide judges in their decision-making. In this article, we will examine some of the notable cases of breach of contract in Uganda.
Case Law 1: Selemu Housing Project Ltd. v. Attorney General
In this case, Selemu Housing Project Ltd. contracted with the Ministry of Lands and Housing to construct affordable housing for low-income families. The contract specified the timelines and payment schedules for the project. However, the government delayed payments, leading to the project`s delay and eventual abandonment.
The court ruled that the government breached the contract by delaying payments, which prevented the contractor from completing the project within the agreed timelines. The court ordered the government to pay the contractor damages for the project`s delay and breach of contract.
Case Law 2: Amina Hersi Mohamed v. BIDCO Uganda Ltd.
Amina Hersi Mohamed, a prominent Somali businesswoman, sued BIDCO Uganda Ltd. for breach of contract. She had entered into a joint venture agreement with the company to establish a palm oil plantation. However, BIDCO failed to fulfill its funding obligations, leading to the project`s failure.
The court found BIDCO liable for breach of contract and ordered them to pay damages to Amina Hersi Mohamed. The court also canceled the joint venture agreement and returned the land to the plaintiff.
Case Law 3: Mulowooza and Brothers Ltd. v. Mbogo and Another
Mulowooza and Brothers Ltd. entered into an agreement with Mbogo and Another for the construction of a private school. The agreement specified the project`s completion date and payment schedules. However, the defendants breached the contract by delaying payments and failing to provide the necessary approvals for the project.
The court found the defendants liable for breach of contract and ordered them to pay damages to the plaintiff. The court also canceled the contract and awarded the plaintiff the right to retain the project`s assets.
Breach of contract is a serious offense in Uganda`s legal system, and courts strictly enforce contracts` terms and conditions. The above case laws are just a few examples of how the judiciary resolves contract disputes in Uganda. Businesses and individuals must ensure that they comply with their contractual obligations to avoid legal disputes and costly damages. Overall, it is essential to seek legal guidance when entering into contracts to ensure that all parties understand and fulfill their obligations.