NKUMBA UNIVERSITY

SCHOOL OF LAW
&
INSTITUTE OF CRIMINAL JUSTICE

PROGRAMME: BACHELOR OF LAWS

COURSE OUTLINE AND READING LIST

Course Title Basics of Contractual Relations

Course Code NULLB 1104 Credit Hours 60 Hours 4 Credit Units
Semester I Core / Core
Elective
Course Ms. Witness Nabalende Course Level Degree
Facilitator
Phone 0704878857
Email

Course Description
This is a foundational course in the understanding of the law of Contracts. It covers
the following topics: Formation of a contract, Offer, Acceptance, Consideration,
Intention to create Legal relations, Capacity to contract, Legality, Performance,
Consensus ad idem and Privity of contract.

Course Objective:
i. To furnish students with the basic concepts and principles of Contract Law.
ii. To provide students with the conceptual knowledge needed for effective
participation in Contract Law education and Research.

Expected learning outcomes

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Training in the basics of Contract Law equips students with the skills to be able to
identify the existence of contractual relations and how to approach the underlying
obligations for each party. At the end of the course, students should therefore have an
enhanced understanding of the different elements that make a valid contract.

Course content:
Formation of a contract, Offer, Acceptance, Consideration, Intention to create Legal
relations, Capacity to contract, Legality, Performance, Consensus ad idem and Privity
of contract.

Teaching method
The main mode of teaching will be Socratic Method, whereby students are expected
to carefully read the assigned materials, including the relevant statutes and case law
material, and be prepared to discuss them in class. The Course facilitator also has the
discretion to rely on the lecture method for some modules. This will involve taking
note of the principles discussed in class and will also be supplemented by class
discussions. Students are required to read ahead of lectures following the schedule in
the course content for texts and cases. During class discussions, students will be
called upon at random to explain judicial decisions from cases on any topic that will
be under discussion.

Coursework and Exam Assessment:

 Coursework will consist of a take-home test and will contribute 30% towards
the final exam mark.
 The final exam at the end of the Semester will be closed-book and will consist
of 6 (six) questions out of which a candidate will be required to answer four
(4) to be marked out of 70%.
 Active participation in class discussion can contribute towards a student’s final
grade.

References
There are a number of essential resource materials that provide substantial
information on this course. Students are advised to read any of the listed material
below, though, also to take note that additional personal reading is also essential as
these materials are not exhaustive.

1. Chris Turner, Unlocking Contract Law, (4th Ed), 2014

2. CHESHIRE, FIFOOT & FURMSTON’S Law of Contract (16th Ed.) 2012
3. HODGIN, Law of Contract in East Africa, E.A.L.B., Nairobi, 1975.
4. D. Bakibinga, Law of Contract in Uganda
5. BEALE BISHOP & FURMSTON: Contracts: Cases and
MaterialsButterworths 1985.
6. ATIYAH, The Rise and Fall of Freedom, Clarendon Press. Oxford 1986.
7. ATIYAH, Essays on Contract, Clarendon Press, Oxford 1986.
8. SIMPSONS, A History of the Common Law of Contract.
9. CORBIN, Laws on Contract.

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NOTE: Most of the cases for the assigned readings are freely available on the website
www.ulii.org

STATUTES
1. The Contract Act No. 7 of 2010
2. The Sale of Goods and Supply of Services Act, 2017
3. The Electronic Transactions Act, 2011
4. The Electronic Signatures Act
5. The Bill of Exchange Act, Cap. 68
6. The Land Transfer Act
7. The Money Lenders Act
8. The Limitation Act
9. The Civil Procedure and Limitations (Misc. Provisions) Act
10. The Companies Act, 2012

Course Outline

Module One: The Origins and Functions of the Law of Contract (Week 1-2) 8
hours

Read:
Ben Twinomugisha, Principles of Law of Contract in Uganda, pp.1-16
Chris Turner, Unlocking Contract Law, pp. 1-11

Introductory reading
Holdsworth; “The History of English Law” Volume 8 (Menthune Press, 1925.)
Contran and Rublin (Eds) “Readings in African Law” Volume 1 part 111 pp. 201-
235.
Lyall, “Contract, Freedom & Exchange” 1975 Vls 7-8 E.A.L.P 261.
Cohen: “The Basis of Contract” in 46 Harvard Law Review 553.
Fiedman: “Law in a Changing Society”, 2nd ed. Stevensons, 1972
Sumpson; “A History of the Common Law of Contract, The Rise of Assumption”
1975.
Salmond J.W.: “The History of Contract” (1887) 3 L.Q.R. 166.

Cases:
Greenboat Entertainment Ltd v City Council of Kampala HCCS No. 580 of 2003
John Kaggwa v Kolin Insaat Turizm & Others HCT-00-CC-0318
Kaziro Lwandasa v Kyas Global Trading Co. Ltd HCMA No. 865 of 2014
Ngege (U) Ltd v SDV Transami (U) Ltd HCCS No. 579 of 2003

Module Two: Formation of a contract - Introduction (Week 3) 4 hours

Article:

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Sempebwa “The Law Relating to Formation of Contracts in East Africa: Some
Differences” (1975) Vol. 3 Nos. 1 and 2 Uganda Law Focus p.44.

Bakibinga, Law of Contract in Uganda.

Interfreight (U) Ltd v. Haji Ahmed Nsubuga HCT-00-CC-0156-2005
Hydro Engineering Services Co. (U) Ltd (HESCO) v. Thorne International Boiler
Services Ltd (TIBS) HCT-00-CC-CS-0818-2003
Equator Touring Services Ltd v. Kampala City Council HCCS No. 763 of 2007 and
278 of 2010

Part II, Contracts Act, 2010

Module Two: formation of a contract - Offer and acceptance (Week 4-5)8 hours
Part II, Contracts Act, 2010

Cases
Pal Agencies (U) Ltd v. Teso Coaches Ltd &Anor, HCT Civil Suit No. 221 of 2008
Naris Tumwesigye v. Mercy Safari Civil Appeal no. 0028 of 2006
Mayanja- Nkangi v National Housing Corporation 1972 (pt.1) ULR 37.
Ddungu v East Africa Posts and Telecommunications (1974) HCB 290.
Katalemwa Traders Ltd v AG Civ App No 2 of 1987.
Sands v Mutual Benefits Ltd (1971) EA 156
Khaled &Ors v Athanas Bros (Aden) Ltd (1968) E.A. 31.
Afro Traders & Farmers (U) Ltd v Gailey and Roberts (U)Ltd (1983) HCB 48.
Pharmaceutical Society of Gt. Britain v Boots Cash Chemists (Southern) Ltd (1953) 1
Q.B. 256
Carlil v Carbolic Smoke Ball Co (1893) 1 Q.B. 256.
Kampala Cycle Trading Co Ltd v Universal 7 ULR 193
Henthron v Fraser (1892) 2 CHD 27
Mukisa Biscuits Mfg Co Ltd v West End Distributors Ltd (No 2) (K) [1970] E.A. 469.

Article:
Winfield P.H. “Some Aspects of Offer and Acceptance” (1939) LQR 499

Module Three: Termination of Offer (Week 6) 4 hours

Part II, Contracts Act, 2010

Hydro Engineering Services Co. (U) Ltd (HESCO) v. Thorne International Boiler
Services Ltd (TIBS) HCT-00-CC-CS-0818-2003
OkelloNymrord v. Rift Valley Railways (U) Ltd Civil Suit No. 195 of 2009
Byrne v Van Tienhoven (1880) 5 CP.D 344
Dickson v Dodds (1876) 2 Ch.D 463
Errington v Errington& Woods (1952) 1 K.B 290
Financing Ltd v Stimson (1962) 3 ALLER

Module Four: formation of a contract - Consideration (Week 7-8) 8 hours

Part II, Contracts Act, 2010

Cases
Kituni Construction Co. Ltd v. Julius Okeny HCT-00-CC-0250-2004

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Ajay Industrial Corp Ltd and Relief Line (U) Ltd v. Jessey Tech Services Ltd HCCS
No. 129 of 2012
Bweya Steel Works v National Insurance Corporation (1985) HCB 58
Curie v Misa (1875) L.R 10 EXCH 153
Dunlop v Selfridge (1915) AC 847
Eastwood v Kenyon (1840) 11 Ed & El 438
The Eurymodon (1979) AC 154.

Article:
Smith J.C. “Unilateral Contracts and Consideration” 69 LQR 99

Module Five: Accord and Satisfaction (Week 9) 4 hours

Part II and Part III, Contracts Act, 2010

Kagumya Godfrey v. NtaleDeo HCCS. No. 298 of 2004

Birimu Wilson v. Akamba (U) Ltd HCT CS No. 132 of 1991
British Russian Gazette Ltd v Association Newspapers Ltd (1933) 2 KB 616
E.A Plans Ltd
Bickford- Smith 1974 E.A. 462

Module Six: Privity of contract (Week 10-11) 8 hours

Among Mary Gorreti v. Tracks International Ltd HCCS No. 280 of 2010
Birimu Wilson v. Akamba (U) Ltd HCT CS No. 132 of 1991
Settlement Trustees v Nurani (1970) 3 A.L.R Comm 409 1970 E.A. 562
Halal Shipping Co Ltd v Securities DremorAllegomeine 1965 E.A. 490
Kayanja v New India Assurance Co Ltd 1968 E.A 295
Barugahare v Ntarambi&Anor (1987) HCB 95

Module Seven: Intention to create legal relations (Week 12-13)8 hours

Part III (sections 10-13), Contracts Act, 2010

Article:
Simpson: “Innovation in Nineteenth Century Contract Law” (1975) 91 L.Q.R 247

Cases
Kagumya Godfrey v. NtaleDeo HCCS. No. 298 of 2004
Ignatius William Kajubi&AdahNambasa v. CananWanyama, Civil Appeal No. 26 of
2002
Okalebo v Euuara&Anor (1975) HCB 200
Balfour v Balfour (1919) 2 KB 571
Merit v Merrit (1970) 2 ALLER 760
Petit v Petit (1970) AC 77
Jones v Padavatton (1969) 2 ALLER 616

Module Eight: Capacity (Week 14) 9 hours

Part III (sections 10-13), Contracts Act, 2010

Articles:
Atiyah: “Liability of Infants for Fraud” (1959)22 MLR 273
Miles: “The Infant’s Liability for Necessaries” (1927) 43 LQR 359

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Winfred: “Necessaries under the Sale of Goods Act 1893” (1942) LQR 82
Gross: “Pre- Incorporation Contracts” (1971) 87 LQR 367.

Cases
Equator Touring Services Ltd v. Kampala City Council HCCS No. 763 of 2007 and
278 of 2010
Ashbury Railway Carriage Co v Riche (1875) L.R. 7 HL 653
Price v Kelsal (1957) C.A 752
Nash v Inman (1908) 2 KB 1
Roberts v Gray (1913) 1KB 520
De Franseco V Barnum (1850) 45 Ch.D 430
Chaplin v LesleFermin (Publishers) Ltd (1966) Ch 71
Edwards v Carter (1893) AC 360
Steinberg v Scale (Leeds) Ltd (1923) 2 Ch 452
Pearce v Brian (1929) 2 KB 310
Re Leslie Ltd v Sheil (1914) 3 KB 607
Imperial Loan Co. v Stone (1892) QB 599
Bobonde v Waiswa (1974) HCB 120

Module 9: Revision (Week 15) 4 hours