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13 Oct 2023

Commercial And Corporate [2023] UGCommC 106

Mitegyeko v Goldmine Finance Limited and Another (Misc Cause 94 of 2022)

Mitegyeko v Goldmine Finance Limited and Another (Misc Cause 94 of 2022) [2023] UGCommC 106 (13 October 2023)

Court: Commercial Court of Uganda
Case number: Misc Cause 94 of 2022
Judge: Kahigi Asiimwe, J

The court found that the transaction between the applicant and respondents was a loan agreement and not a sale of the vehicle. The evidence, including the acknowledgment of receipt of loan funds, affidavits from witnesses, and the circumstances of the transfer, indicated that the applicant did not intend to sell his vehicle but rather pledged it as security for a loan. The sale agreement was deemed null and void due to lack of intention to create legal relations and absence of consideration. The court further held that the interest charged was harsh and unconscionable, and that the practice o…

Source excerpt

Money Lending Transactions
Unconscionable Contracts
Contractual Intention
Security For Loans

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Date unavailable

Commercial And Corporate [1999] UGHC 22

General Industries (U) Ltd v Non.Performing Assets Recovery Trust

General Industries (U) Ltd v Non.Performing Assets Recovery Trust (Civil Appeal No. 5 of 1998) [1999] UGHC 22 (12 January 1999)

Court: High Court of Uganda
Case number: Civil Appeal No. 5 of 1998

The Supreme Court held that although the mortgage contract recited consideration as a loan of shs. 700m/=, both parties agreed that no such loan was advanced. The true consideration was UCB's forbearance in postponing recovery of the debt, as part of a restructuring and rescheduling arrangement, and this was properly inferred from extrinsic evidence admitted at trial. The Court found that the exclusionary rule in section 91 of the Evidence Act did not preclude reliance on such evidence, especially where the appellant itself introduced evidence to show lack of consideration. The Tribunal and C…