Waneroba Patrick v Bumutsukhu Financial Service Ltd
Waneroba Patrick v Bumutsukhu Financial Service Ltd (Civil Appeal No. 0103 of 2024) [2025] UGHC 456 (26 June 2025)
The court found that the loan agreement between the appellant and respondent did not comply with statutory requirements under the Tier 4 Microfinance Institutions and Money Lenders Act, as it was only signed by the borrower and lacked signatures of the lender and a third party witness. The use of an ATM card as collateral was expressly prohibited by law, rendering the transaction illegal. Although the respondent advanced Ugx: 2,550,000/= to the appellant, the respondent's withdrawal of Ugx: 2,325,000/= from the appellant's account using the ATM card was also illegal. The court held that only…
Source excerpt
- Money Lending Contracts
- Loan Agreements
- Contract Enforceability
- Illegality In Contracts