Uganda Case Law

Ecobank Uganda Limited v Fone Plus Limited & Others

Ecobank Uganda Limited v Fone Plus Limited & Others (Civil Suit 776 of 2021) [2023] UGCommC 146 (12 May 2023)

Court

Commercial Court of Uganda

Case number

Civil Suit 776 of 2021

Judge

Anna B. Mugenyi, J

The court found that the 1st defendant was indebted to the plaintiff for USD 3,403,046, having received and defaulted on credit facilities, and that the plaintiff was entitled to debit the 1st defendant's account and charge interest as per the contractual terms. The 1st defendant's arguments regarding unauthorized debiting and mistaken restructure were rejected, as the agreements expressly permitted such actions and the defendant had acknowledged the debt and requested restructuring. The 2nd and 3rd defendants, as guarantors under demand guarantees, became liable upon the 1st defendant's defa…

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• Letters Of Credit
• Guarantees And Indemnities
• Loan Restructuring
• Bankers Lien
• Contractual Interest
• Debt Recovery

Kaaya L. Enterprises Ltd v KCB Bank (U) Ltd

Kaaya L. Enterprises Ltd v KCB Bank (U) Ltd (Civil Suit No. 531 of 2013) [2018] UGCommC 73 (30 August 2018)

Court

Commercial Court of Uganda

Case number

Civil Suit No. 531 of 2013

The High Court found KCB Bank (U) Ltd breached its duty of care by failing to send promised letters of credit, awarding damages to Kaaya L. Enterprises and partially allowing the bank’s counterclaim.

• Breach Of Contract
• Fiduciary Duty Of Banker
• Letters Of Credit
• Damages Assessment
• Counterclaim Liability
• Breach-of-contract

Non- Performing Assets Recovery Trust (NPART ) v Amen Economic Stone Quarry Company Limited

Non- Performing Assets Recovery Trust (NPART ) v Amen Economic Stone Quarry Company Limited (Civil Appeal 18 of 1998) [1999] UGCA 57 (29 July 1999)

Court

Court of Appeal of Uganda

Case number

Civil Appeal 18 of 1998

Judge

Okello, JA, Mpagi-Bahigeine, JA, Engwau, JA

The Court of Appeal dismissed a bank’s appeal and the respondent’s cross-appeal, upholding findings of undue influence and the bank’s duty in a letters-of-credit transaction.

• Bank Loans
• Letters Of Credit
• Contractual Duties
• Undue Influence
• Importation Disputes
• Apportionment Of Costs

Bukoto Farmers & General Merchandise Limited v Libyan Arab Uganda Bank & Another

Bukoto Farmers & General Merchandise Limited v Libyan Arab Uganda Bank & Another (Civil Appeal 37 of 1993) [1994] UGSC 40 (11 April 1994)

Court

Supreme Court of Uganda

Case number

Civil Appeal 37 of 1993

Judge

Oder, JSC

The Supreme Court of Uganda dismissed a banking and foreign-exchange appeal, holding the appellant had not proved that the Central Bank had to repurchase unused currency at the new rate.

• Foreign Exchange Transactions
• Currency Devaluation
• Banking Policy
• Letters Of Credit
• Foreign-exchange
• Currency-devaluation

Kassam Jivraj and Company Limited v Gulamhussein and Company Limited

Kassam Jivraj and Company Limited v Gulamhussein and Company Limited (Civil Case No. 42 of 1947 (Mombasa)) [1951] EACA 337 (1 January 1951)

Court

East African Court of Appeal

Case number

Civil Case No. 42 of 1947 (Mombasa)

Judge

De Lestang J

The court found that three distinct contracts existed between the parties, including a specific contract for 250 tons of chora to be shipped by the first available steamer. The plaintiffs fulfilled their payment obligations for the chora, but the defendants failed to deliver as required, constituting a breach. The defendants' arguments for set-off and waiver were rejected; the contracts were independent and no special equity justified set-off. The plaintiffs did not waive their rights except for certain goods where correspondence showed acceptance of late or excess shipments. Damages for non-…

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• Sale Of Goods
• Breach Of Contract
• Letters Of Credit
• Damages Assessment
• Set Off
• Waiver

Kachara and Bros v Official Receiver and Liquidator of the Exchange Bank of India and Africa Limited

Kachara and Bros v Official Receiver and Liquidator of the Exchange Bank of India and Africa Limited (Civil Appeal No. 69 of 1950) [1951] EACA 33 (1 January 1951)

Court

East African Court of Appeal

Case number

Civil Appeal No. 69 of 1950

Judge

Lockhart-Smith, J, Nihill P, Worley VP

The Court held that the appropriation of a portion of the appellant's account as a percentage margin was a condition imposed by the bank for granting letters of credit, not a specific appropriation pursuant to instructions from the appellant. The funds remained part of the general account and were not held in trust or as agent for the appellant. The bank's separate accounting for the margin deposits did not alter the debtor-creditor relationship. Therefore, the appellant's claim for the marginal deposits ranks equally with other creditors in the liquidation and is not entitled to preference.…

Source excerpt

• Bank Customer Relationship
• Letters Of Credit
• Liquidation Priority
• Trust Vs Debt
• Fiduciary Duties
• Marginal Deposits

Valabhdas v Andrew and Another

Valabhdas v Andrew and Another (Civil Appeal No. 86 of 1955) [1950] EACA 232 (1 January 1950)

Court

East African Court of Appeal

Case number

Civil Appeal No. 86 of 1955

Judge

Bacon, JA, Briggs (Acting Vice-President), Worley, P

The court held that “buy back” included a mercantile covering purchase, and that the agents acted within authority when they allocated bought cloves to open contracts.

• Agency Authority
• Contract Performance
• Indemnity And Remuneration
• Mercantile Practice
• Letters Of Credit
• Agency-authority