Professional Documents
Culture Documents
Course objectives
The primary objective of the law of contract is to examine the purpose and the scope of legal
protection accorded to agreements. The other objective is to expose the students to an
understanding the principles that have been laid down in the leading cases and to learn how to
apply those principles to a given set of facts. To achieve this, the course unit attempts to deal
with the general principles applicable to the types of bargains and systems of trade found in
Uganda and East Africa for instance the doctrine of consideration, the making of contracts,
exemption clauses etc.
Learning Outcomes
By the end of the course, students will be able to:
demonstrate a thorough working knowledge of the elements of contract law and the
theories underlying it.
understand contract case law: you should develop the ability to understand contract cases,
that is to say the importance of the issues in a case and how the court has resolved the
issues
apply the cases: the student should be able to apply the case law to a given issue
understand statutes: should develop the ability to interpret a statute;
should also be able to understand the interrelationship between the statute and the
relevant common law
apply statute to a given case/issue
Appreciate the contents of a valid contract
Law applicable
Constitution of the Republic of Uganda, 1995 (as amended).
Contracts Act 7/2010
Sale of Goods and Supply of Services Act, 2017
Bills of Exchange Act, Cap.68
Companies Act, No.1 of 2012
Motor Vehicle (Third Party Risks) Act, Cap.214
Sale of Goods and Supply of Services Act, 2017
Tier 4 Microfinance Institutions and Money Lenders Act, 2016
Electronic Transactions Act, No.8 of 2011
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Electronic Signatures Act, No.7 of 2011
Computer Misuse Act, 2011
The Limitation Act, Cap 80, Laws of Uganda
The Money Lenders Act, Cap 273, Laws of Uganda 2000
Judicature Act, Cap 13, Laws of Uganda
Evidence Act, Cap 6 Laws of Uganda
CASE BOOKS
JC Smith & Thomas: A Case book on Contract, Sweet & Maxwell
o London 11th Edition 2000
Beal, Bishop & Furmston: Contract-Cases and materials, Butterworth 3rd
Ed, 1995
REFERENCE BOOKS:
Twinomugish, B.K: Principles of Law of Contract in Uganda (Makerere University Press,
2018
ATIYAH; Essays in Contract, Claredon Press, Oxford 1986
CHESHIRE FIFOOT and FURMSTONS’S Law of Contract, 12 th Edition, Butterworths
1991
Anson’s Law of Contract: Oxford University Press, (latest edition:12th edition).
Richards, P: Law of Contract (Pearson Education Ltd 2002)HODGIN R.W: Law of
Contract in East Africa, Kenya Literature Bureau
BAKIBINGA D.J: Law of Contract in Uganda, 1996
CHITTY on Contracts; Vol. I & II, Sweet &Maxwell, London latest edition
Treitel, Law of Contract 8th Edition (Sweet & Maxwell, 1991)
D. Bakibinga, Law of Contract in Uganda 2nd Ed (The Written Word Publications,
Kampala)
HoldsWorths: The History of English Law Vol. 8 Mantheun Press (1925).
Eagles, F: Origin of the Family, Private Property and the State (C.H Kerr & Company
2009)
Paul Richards: Law of Contract, Pitman Publishing 3rd edition 1997
Burrows A: Offer and Acceptance: A case book on Contract 2nd edition (Hart Publishing,
2009)
Nditi, N.N.N: General Principles of Contract Law in East Africa (Dar es Salaam
University, 2004)
Law Journals
Cambridge Law Journal
Journal of Contract Law
Law Quarterly Review
Lloyd’s Maritime and Commercial Law Quarterly
Modern Law Review
The students are highly encouraged and expected to make use of the online resources
available in the library
Historical Introduction including the nature, scope and development of the Law of
Contract
Development of the law of contract in East Africa
Application of foreign law
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The relevance of customary contract law
Classification of contract
Written contract
Contracts requiring written evidence
Simple contracts
Background to the Law of Contract Definition of Contracts
Section 2 , 10 of the contracts Act
Development of modern law of contract
Purpose of the law of contract
Concepts of the law of Contract in Uganda
Reception of English Law
Customary Law
Twinomugisha, op cit, pp. 1-16
Leslie and Anderson (Nairobi) Ltd V Kassam Jivraj & Co. Ltd 17 EACA 84
Wambwa V Okumu (1970) EA 578
Pandit V Sekatawa (1964) 2 ALR Comm. 25
Kanti Printing Works V Tanga District Council CA 18 of 1970 (Tanzania).
Brodgen V Metropolitan Railways Co. 91877) 2 AC 666.
Printing and Numerical Registering Co. vs Sampson( 1875) LR 19Eq 462
Interfreight (U) Ltd Vs Hajj Ahmed Nsubuga H.C.C.S No. 156 of 2005 (Commercial
Division) (unreported)
Bank of Baroda (U) Ltd Vs Mega Holdings C.S. No. 186 of 1996
James Mundele Sunday vs Pearl of Africa Tours and travel HCCS( Commercial court
) 089 of 2011
Green boat Entertainment Ltd vs City Council of Kampala ( 2007 )1 ULR 554
Ngege ( U) Ltd vs SDV Transami( U) Ltd ( 2008) ULR 578
o
Formation of a Contract
This topic introduces the student to the law relating to the formation of a contract (The
Contract Act 2010).The discussion of this topic is intended to enable students to explain and
discuss the modalities of concluding a Contract. It is expected that the student will be able to
understand the characteristics of; and the various components which constitute a contract.
Articles
Winfield P.H, ‘Some aspects of offer and acceptance’ (1939) LQR 499
Prof. Frederick Ssempebwa, ‘The Law Relating to Formation of Contract in East Africa:
Some Differences’ 3 (1975) I& II Uganda Law Focus, 44
Consent
Refer to Ss. 13, 14, 15, 16 & 17 Contracts Act No. 7 of 2010
Read: Twinomugisha, op cit, pp. 17-40
Cases
Mukisa Biscuits Manufacturing Co. Ltd V West End Distributors Ltd (1970) E.A. 469.
Ghulum Kadir V British Overseas Engineering Co. (E.A.) Ltd (1957).
Offer and Acceptance:
This discussion will focus on the meaning and characteristics; making of offer under
various situations; the mode of communication of an offer.
Invitation to treat: mode of communication of an invitation to treat. A student should be
able to differentiate an offer from other contractual proposals like invitation to treat.
Contracts Act No. 7 2010, Ss 3, 4, 5, 6, 7 S 10
Carlill v Carbolic Smoke Ball Co (1892) 2 QB 484 (1893)1 QB 256
Partridge v Crittenden (1968)2 All ER 421 (1968) 1 WLR 1209
Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd (1952)2
All ER 456 (1953)1 All ER 482
Fisher v Bell (1961) 1QB 394 (1960)3 All ER 731
Scammell and Nephew Ltd v. Ouston (1941) 1 All E.R 14
Jupiter General Insurance Co. Ltd. v.Kasanda Cotton Co. (1966) (1) A.L.R. Comm
Sands v Mutual Benefits (1971) EA 156
Mukisa Biscuit Manufacturing Co. Ltd V West End Distributors Ltd (No 2) (1970) EA
469
Mayanja Nkangi v National Housing Corporation 1972 (Pt 1) ULR 37
Otis Elavator Co. Ltd v Bhajan Singh (1966) ALR Comm.337
Khaled v Athanas Bros. (Aden) Ltd (1968) EA 31
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Felthouse v Bindley (1862) 2 Ch. D 868
Henthorn v Fraser (1892)2 Ch. D 27
Dungu v East Africa Posts and Telecommunications (1974) HCB 290
Karmali Tarmohamed v Lakhani and Co. (1958) EA 467
East African Industries Ltd v Powysland Ltd EALR 121
Wiles v. Madison (1943) 1 All E.R. 315.
Roberts v. Littlewoods Mail Order Stores (1943) K.B. 269.
Blackpool & Flycle Aero Club Ltd. V. Blackppol Borought Counicl (1990) 3 All E.R. 25
Great Northern Railway Co. v. Ltd Witham (1873) L.R. 9 C.P. 16.
Howrad Co. (Africa) Ltd v. Burton (1964) E.A. 540 (K)
Esso Petroleum Ltd. V. Commissioner. Of Customs & Excise (1976) 1W.L.R.1
Acceptance:
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The meaning and characteristics of acceptance, acceptance under various situations and the
communication of acceptance. See Ss. 3(2), 4(2)(a) &(b), (3)(a), 5(2), 7(1), 8 & 9 Contracts
Act No. 7 of 2010
Carlili v. Carbolic Smoke Ball Co.
Felthouse v. Binldley (1862)
Otis Elevator Co. v. Bhajan Singh (1967) E.A. (1967) E.A [1966] 2 A. R. (Comm)
Sands v. Mutual Benefits Ltd. (1971) E.A 156.
Foley v. Classique Ltd. (1934) All E.R. 88.
Mukisa Biscuit Mfg. C. V. West End Distritors Ltd.
Jupiter Gen. Insurance v. Kasanda Cotton Co. (1966) 1 A. L.R.
(comm.) 292.
Rugnath Gokaldas & Co. v. M.R. Ghai & Sons 12 KLR 124
Henthron v. Fraser (1892) Ch. 29
Hyde v. Wrench (1840) 3 Beav 334
Karmali Tarmohamed v. Lakhani & Co. (1958) E.A 56
Chatam Kadir v. British Overseas Eng. Co. (E.A) Ltd.
Adams v. Lindsel1 (1818) 106 ER. 250
Blackpool & Flyde Aero Claub Ltd. v. Blackpool Borough Council 1990) All E.R. 25.
Great Northern Railway Co. v. Ltd Witham (1873) L.R. 9 C.P. 16.
Karmali Tarmohamed & an. v. I.H. Lakhani & Co. (1958) E.A.567
Entores Ltd. v. Miles Far East Corp. (1955) All EAR 493.
Household Fire & Accident Insurance Co. v. Great (1879) 4 Ex. D 216
Fourways Travel Service Ltd. [1971] EA 251
Khaled & ors v Attahanas Brothers (Aden) Ltd (1968) EA 31
Jetha Petrol Station v Lalani (1958) EA 455
Seni v Ram (1938) 18 KALR 21
Pan African Trading Ltd. v Chade Brothers (1952) EACA 141
Consideration
This topic seeks to explain to students the importance and rationale of consideration in a
contract and to give general definition of the term consideration, and understand the various
types of consideration. A student should be able to tell the differences between adequacy and
sufficiency in consideration. The student will further be introduced to and made to should be
to understand the doctrine of promissory estoppels.
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Tweedle V Aiknson (1861)1 B&S 393
Sekandi v Musoke 1970 (3) ALR Comm. 260
Ward V Byham (1956) 2 All ER 318
North Ocean Shipping Co. Ltd V Hyundai Construction Co. Ltd (1979) QB 70
Pinnel’s Case (1602)
Foakes V Beer (1884) 9 App. Case 605
Sekitoleko v Kisiriko (1975) HCB 49
Lubowa v Kitara Enterprises Ltd. (1987) HCB 42
D& C Builders v Rees (1966) 2 QB 617
Vanbargon v St. Edmund Properties Ltd. (1933) 2 KB 223
Grassbrook Bors. Ltd. v. Glamorgan City Council (1925) A.C.
270.
Al Jah Noman Mohamed Qudasi v. G.A.M. Quadasi (19630
E.A. 142.
Ward v. Byham (1956)1 WLR 496. (1956) All E.R. 318.
Williams v. Williams (1957) 1 All E. R. 305
D& C Builders Ltd. V. Rees (1966)2) Q. B. 617; (1965)3 All
E.R. 837
Horrocks v. Forray (1976) 1 WLR 230.
Comb v. Comb
Stilk v. Myrick (1809) 170 E.R 94.
Tweddle V Atkinson
Turner v. Owen (1862)
Lisbon v. owners of s.s. Carpathian (1915)2 K.B. 42.
Shadwell v. Shadwell (1860)
Scotson v. Pego (186) 150 E.R. 121.
New Zealand Shipping Co. v. A.M. Satterthwarite & Co. (the
Eurymedon) (1975) A.C. 154.
Hassanali Issa & Co. v Jeraj Produce Shop (1967) EA 555
Lombard Banking Ltd. v Ghadi (1964) EA 12
Rattans v Israel (1952) EACA127
Dungate v Dungate (1965) ALLER 818
Jetha Petrol Station v Lalani (1958) EA 445
Nayar v Storling Gen. Insurance (1966) EA 184
Motor Mart & Exhange Ltd v Ghandi & Another [1963] EA 657
Summary
The doctrine of consideration is the means by which English courts decide whether promises
are enforceable. It generally requires the provision of some benefit to the promisor, or some
detriment to the promisee, or both. The ‘value’ of the consideration is irrelevant, however.
The performance of existing obligations will generally not amount to good consideration,
unless the obligation is under a contract with a third party, or the promisee does more than the
existing obligation requires. This rule is less strictly applied following Williams v Roffey. Part
payment of a debt can never in itself be good consideration for a promise to discharge the
balance. Consideration must not be past’, unless it was requested, was done in the mutual
expectation of payment and is otherwise valid as consideration.
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Doctrine of Privity of Contract
This topic introduces the student to the relationship between this doctrine and the doctrine of
consideration. The student should be able to understand and explain the exceptions to the
privity rule and its usefulness.
Kayanja v. New India Assurance Co. Ltd. (1968) E.A
Tweedle v. Atkinson (1861)
Dunlop Pneumatic v. Selfridge.
Scruttons Ltd. v. Midland Silicones Ltd. (1962) A.C.
Beswick v. Beswick (1966) ch. 539; S & T 242.
Jackson v. horizon holidays Ltd. (1975) All E.R. 92.
Tariock Singh Nayr v. Sterling Gen. insurance Co. Ltd. (1966) E.A.
144.
Barugahare v Ntarambi & anor [1987] HCB 95
North Ocean Shipping Co. Ltd. v Hyundai Construction Ltd. (1979) QB 705
Lubowa v Kitara Enterprises Ltd. [1987] HCB 162
The Eurymodon (1979) AC 154
British Russian Gazzette v Association Newspapers (1933) 2 KB 616
EA Plans Ltd. v Brickford Smith (1974) EA 462
Shamia v Joory (1958) 1 QB 448
Halal Shipping Co. v Securities Demor Allegemene (1965) EA 490
Price V Easton (1833) 4 B & Ad 433
Smith and Snipes Hall Farm Ltd. V River Douglas Catchment Board (1949) 2 KB 500
Rookes V Barnard (1964) AC 1129
Ssemwogerere & Ors Vs Attorney General H.C.C.S No. 1010 of 1996
Birimu Wilson vs Akamba ( U) ltd HCCS 132 Of 1991
Exceptions to the Privity of Contract
Motor Vehicle ( Third party Risks )Act Cap 214
Doctrine of Equitable/Promissory Estoppel
The doctrine of promissory estoppel is concerned with the modification of existing contracts.
The position under the classical common law of contract was that such modification would
only be binding if consideration was supplied and a new contract formed. Thus in a contract
to supply 50 tons of grain per month at 500,000shs per ton for 5 years, if the buyer wanted to
negotiate a reduction in the price to 450,000shs per ton, because of falling grain prices, this
could only be made binding if the buyer gave something in exchange (for example, agreeing
to contribute to the costs of transportation). Alternatively the two parties could agree to
terminate their original agreement entirely, and enter into a new one. The giving up of rights
under the first agreement by both sides would have sufficient mutuality about it to satisfy the
doctrine of consideration.
Central London Property Trust Ltd. V High Trees House Ltd. (1947) KB 130
Combe V Combe (1951) 2 KB 215
Century Automobile Co. Ltd. V Hutches Biermar Ltd (1965) EA 304
Nurdin Bandali v Lombank Tanganyika Ltd (1963) EA 304
Ajayi v R. T Briscoe (Nigeria) Ltd. (1964)3 All ER566
Hughes v Metropolitan Rly Co. (1877) 2 App Cas 439
8
East African Power & Lightening Co. v Dandora Black Trap Quarries (1967) EA 728
Mulji Jetha Ltd. V Commissioner of Income Tax (1967) EA 50
Malji Jetha v Commissioner of Income Tax (1967) EA 50
Rose & Frank Co. v. Crompton & Bros, Ltd. (1923) 2 KB 206
Kleinwort Benson Ltd Malaysia Mining Corp. Bhd (1989) 1 ALL ER 785
Edwards v Skyways Ltd (1964) 1 WLR 349
Contractual Capacity
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This topic will introduce students to the essential elements of a contract to equip them with
knowledge to define contractual capacity with specific reference to minors and their
contractual capacity; drunken persons and insane persons.
10
Contracts required to be in writing
S.10 (5) & (6) Contracts Act No. 7 of 2010
Mukisa Ltd. v West End Distributors (1970) 3 ALR Comm.310; [1970] EA 470
Elias B. George Saliely & Co. (Barbados) Ltd (1983) 1 AC 646
Thomas v Brown (1876) 1 QB 714
Credict Finance Corporation Ltd v Ali Mwakasanga (1959) EA 79
Express terms
Eyre v Measday (1986) 1 ALL ER 488
Implied terms
Ali Kassim Virani Ltd v United African Co. TZ Ltd (1958) EA 204
Jinabhai & Co Ltd. v Eustace Sisal Co. Ltd. (1967) EA 153
Liverpool City Council v Irwin [1976] 2 All ER 39
11
Schwartz v Gill & Co. Ltd. (1971) 3 ALR Comm. 38
Panesar v Popat (1968) EA 17
Neon & Norlo Signs (Kenya) Ltd. v Alarkhia & Ors (1990) EA 82
Caleb & Ors v Din & Ors (1972) ULR 89
Nagji v Abdulla bin Abdulla 6 ULR 43
S.S Ardonnes (Cargo Owners) v Ardennes (1951) 1 KB 55
Pragji v Lubega (1964) EA 689
Oscar Chess Ltd. v Williams (1957) ALLER 325
East African Power & Lighting Co. Ltd. v Dandora Balck Trap Quaries (1967) EA 128
Reigate v Union Manufacturing Co.s (Ramsbottom) Ltd. (1918) 1 KB 592
Robbialac Paints v K & D Construction Ltd. [1976] HCB 47
Kampala General Agency 1942 Ltd. v Modys East Africa Ltd. [1963] EA 549
Routledge v Mackay [1954] 1 ALLER 855
Wassimbo v Bukenya HCCS 174/1987
Hebuit v Buckleton [1913] AC 130
Dick Bantley Productions v Harrold Smith [1965] 2 ALLER 65
Rowland v Divall [1923] 2 KB 500
Grant v Australian Knitting Mills [1936] AC 85
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Intermediate Terms
Hong Kong Fir Shipping Co v Kawasaki Kisen Kaisha [1962] 1 All ER 474
The Mihalis Angelos [1971] 1 QB 164
The Hansa Nord [1976] QB 44
Reardon Smith Line v Hansen-Tangen [1976] 3 All ER 570
Bunge Corporation v Tradax Export [1981] 2 All ER 513.
Fundamental Breach
13
Suisse Atlantic Societe d’Amement Maritime SA V NV Rotterdamsche Kolen Centrale
(1967) 1 AC 361
Photo production Ltd V Securicor Transport Ltd (1980) 2 WLR 283
Asadi Mugumuza V Agip Petrol Station (1975) HCB 288
Pinnock Bros V Lewis & Peat Ltd (1923) 1 KB 690
Produce Marketing Board V Uganda Railways Corporation (1992) 111 KARL 36
James Morrison & Co V Shaw Savill & Albion Co. Ltd 91916) 2 KB 783
Consequence of Breach
Yeoman Credit Ltd V Apps (1962) 2 QB 508
Gailey & Roberts V Salum (1962) EA 376 CA
AGENCY
Contracts Act, sections 118-170
Twinomugisha, op cit, pp. 217-236
Bakibinga, op cit, pp. 167-223
Hodgin, op cit, pp. 241-271
Seller and Another v Associated Motor Boat Co. Ltd and others [1968] EA 123
Luxir (Eastbourne) Ltd v Cooper [1941] AC 108
Direct Domestic Appliances Ltd v Nile Breweries Ltd [2008] 1 EA 88
Ireland v Livingston (1872) LR HL 395
Freemen and Lockyer v Buckhurst Park Properties Ltd [1964] 2 QB 480
Midland Bank Ltd v Reckett [1961] AC 336
Ashford Shire Council v Dependable Motors Property Ltd [1961] AC 336
Mullens v Miller (1822) 22 Ch D 194
Watteau v Fenwick (1893) 1 QB 346
Coffee Marketing Board v Kigezi District Growers Union [1995] II KALR 21
Edmund Shutter & Co (U) Ltd v Patel [1969] EA 259
Rama Corporation v Proven Tin and General Investments Ltd (1952) 2 QB 147
NIS Protection (Uganda) Ltd v Nkumba University HCCS No. 604 of 2004
Bigger Staff v Rowatt’sWhare Ltd (1896) 2 Ch 102
The Argos (1873) LR 5 PC 134
Phillipson v Hayter (1870) LR 6 CP 38
Debenham v Mellon (1880) 5 QBD 394
Nyuki General Trading Stores v Peterson 15 EACA 28
Alex Olwor v Registered Trustees of Arua Catholic Archdiocese, HCCS No. 692 of 1994
Turpin v Bilton (1843) 5 Man & G 455
Aberdeen Rly Co v Blaike Bros (1854) 1 Macq 461
Boston Deep Sea Shipping and Ice Co v Ansell (1888) 39 Ch D 339
Chaudhry v Prabhakar [1989] 1 WLR 29
De Bussche v Alt (1878) 8 Ch D 286
Oriental Insurance Brokers Ltd v Transocean Uganda Ltd, SCCA No. 55 of 1995
Way v Latilla [1937] 3 All ER 759
Alfa Insurance Consultants Ltd v Empire Insurance Group, SCCA No. 9 of 1994
Mc Neil v Law Union & Rock Insurance Co. Ltd (1925) Lloyd’s List LR 341
Haji KhamishaJumaEssak v High Commissioner for Transport 20 KLR 1
Lawjali Coffee Growers Ltd v Leslie & Anderson (EA) Ltd 1967 (1) A.L.R Comm. 323
14
Edmund Schulter& Co. (Uganda) Ltd v Patel [1959] EA 259
VallabhadasHrijiKapdia v ThakerseyLaxmidas [1964] EA 378
EmcoPlactica International Ltd v Freeberne [1971] EA 432
Hely-Hutchinson v Brayhead Ltd [1967] 3 All ER 98
Dalgety& Co. v Cluer [1961] EA 178
Warehouse and Forwarding Co of East Africa Ltd v Jafferali and Sons Ltd [1963] 3 All
ER 571
Habib Devji v Tarmohamed and Another [1960] EA 1022
MarianeWinther v ArbonLangrish and Southern Ltd [196] EA 292
Uttamchand and Co Ltd v F.J. Hawkers and Co. Ltd (1955) 22 EACA 197
Tot Ram v Mistry Waryam Singh 5 ULR 76
Tanganyika Farmers Associations Ltd v Unyamwezi Development Corporation Ltd
[1970] EA 620
Acharya Travel Agencies (Uganda) Ltd v Arua Bus Sndicate Ltd [1966] EA 511
Mcdonnell v Kimani [1967] EA 702
HusseinalyDharamsiHasmani v National Bank of India Ltd 5 EACA 99
Moritz Eber v A. Thomsen 2 EACA 34
Doshi Hardware (U) Ltd v Alam Construction Ltd HCT-00-CC-CS-425-2003
Attorney General v Niko Insurance (U) Ltd, HCCS No. 240 of 2012
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