MTN Two One Two Staff Cooperative and Credit Society Limited v Majwega Musoke
MTN Two One Two Staff Cooperative and Credit Society Limited v Majwega Musoke (Civil Suit 82 of 2021) [2022] UGCommC 137 (22 April 2022)
The court found both procedural and substantive unconscionability in the contract regarding the interest rates imposed on the defendant. The 30% per annum rate and the 5% per month default rate were deemed usurious and excessive compared to prevailing market rates, with no evidence that the defendant was a high-risk borrower. The defendant, though not legally represented, was a sophisticated party and not vulnerable, but the circumstances of the renegotiation gave the plaintiff an unfair advantage. The court exercised its discretion under section 26 of the Civil Procedure Act to substitute th…
Source excerpt
- Contract Unconscionability
- Interest Rate Disputes
- Sale Of Land
- Remedies For Breach
- Money Had And Received