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Uganda decisions
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General Industries (U) Ltd v Non. Performing Assets Recovery Trust (Civil Appeal 5 of 1998) [1999] UGSC 8 (12 January 1999)
The Supreme Court held that extrinsic evidence could be used to identify the true consideration for a mortgage, finding UCB’s forbearance supported the mortgage.
Patel Brothers v Hasmani (Civil Appeal No. 65 of 1951) [1952] EACA 170 (1 January 1952)
The Court of Appeal held that the trial judge erred in placing the burden of proof regarding consideration on the plaintiff. The evidence established that the cheque was given by the defendant at the request of his son, Esmail, to accommodate Esmail and procure forbearance from suit. Such forbearance, whether express or implied, is valuable consideration in law for a bill or cheque. The respondent failed to rebut the presumption of consideration and called no evidence to explain the transaction otherwise. The court found that the substance of the transaction was forbearance to sue Esmail, and…
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General Industries (U) Ltd v Non.Performing Assets Recovery Trust (Civil Appeal No. 5 of 1998) [1999] UGHC 22 (12 January 1999)
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…
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