Uganda Case Law

American Procurement Company, Inc (Amproc, Inc) v Arigye

American Procurement Company, Inc (Amproc, Inc) v Arigye (Civil Suit 664 of 2021) [2024] UGCommC 268 (31 January 2024)

Court

Commercial Court of Uganda

Case number

Civil Suit 664 of 2021

Judge

Anna B. Mugenyi, J

The Court found that the agency agreement (MOU) between the Plaintiff and Defendant was unconscionable and illegal due to the grossly unfair distribution of compensation (sixty percent to the agent) and the execution of an irrevocable power of attorney. The contract was contrary to public policy, as it monetised access to public services and undermined the interests of the actual landowners. The Court held that the agreement was void and unenforceable, dismissing the Plaintiff's suit and granting the Defendant's counterclaim for refund of payments made under the void contract. The Court decli…

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• Agency Agreement
• Contract Enforceability
• Unconscionable Terms
• Public Policy
• Remedies For Breach

Topline Investments Limited v Namuli and Another

Topline Investments Limited v Namuli and Another (Civil Suit 966 of 2019) [2023] UGCommC 72 (28 July 2023)

Court

Commercial Court of Uganda

Case number

Civil Suit 966 of 2019

Judge

Kahigi Asiimwe, J

The court found that the 1st Defendant defaulted on her obligations under the loan agreement and memoranda of understanding, and the 2nd Defendant, as guarantor, became liable upon that default. The agreed interest rate of 10% per month (120% per annum) was deemed harsh and unconscionable compared to prevailing commercial rates. Applying Section 26(1) of the Civil Procedure Act and relevant case law, the court reopened the transaction and awarded interest at a commercial rate of 25% per annum. Judgment was entered for the Plaintiff for the principal sum, interest at 25% per annum until paymen…

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• Loan Agreements
• Guarantee Liability
• Contractual Interest
• Unconscionable Terms
• Remedies For Breach

Rajnishjain (Administor of the Estate of the late R.L Jain) v Lokii peter Abraham

Rajnishjain (Administor of the Estate of the late R.L Jain) v Lokii peter Abraham (Civil Suit No. 277 of 2013) [2021] UGCommC 48 (14 July 2021)

Court

Commercial Court of Uganda

Case number

Civil Suit No. 277 of 2013

Judge

Wabwire, J

The High Court found the defendant indebted on a loan claim, held the 10% monthly interest unconscionable, substituted 2% monthly interest, and awarded damages and costs.

• Money Lending
• Contractual Interest
• Loan Default
• Unconscionable Terms
• Money-lending
• Contractual-interest

In Re: Trevor Mugumu (Child) (Family Cause No. 68 of 2019)

In Re: Trevor Mugumu (Child) (Family Cause No. 68 of 2019) [2020] UGHCFD 2 (17 March 2020)

Court

HC: Family Division (Uganda)

Case number

Family Cause No. 68 of 2019

Judge

Kitariisibwa-Katunguka, J

The High Court held a land commission agreement illegal to the extent it monetized access to public compensation, found the 50% fee unconscionable, and dismissed the suit.

• Illegality Of Contract
• Unconscionable Terms
• Public Policy In Contracts
• Real Estate Brokerage
• Commission Agreements
• Illegality-of-contract

Namanya & Another v Mukalagi

Namanya & Another v Mukalagi (CIVIL SUIT NO. 237 OF 2012) [2020] UGHCCD 6 (28 February 2020)

Court

HC: Civil Division (Uganda)

Case number

CIVIL SUIT NO. 237 OF 2012

Judge

Wolayo, J

The court found that the commission agreement between the Plaintiffs and Defendant was illegal on public policy grounds because it monetized access to the Uganda Land Commission's Land Fund, a public service intended to be free unless charges are specifically imposed by law. The 50% commission term was deemed unconscionable, as no reasonable landowner would agree to split the proceeds from a land sale equally with a broker, especially under circumstances where the Defendant was in a weaker bargaining position and the Plaintiffs leveraged their connections to extract an excessive commission. A…

Source excerpt

• Illegality Of Contract
• Public Policy In Contracts
• Unconscionable Terms
• Real Estate Brokerage
• Commission Agreements

Mectron Technical Services Ltd v Jevi Media Solutions Ltd & Ors

Mectron Technical Services Ltd v Jevi Media Solutions Ltd & Ors (Civil Suit No. 516 of 2013) [2015] UGCommC 152 (13 November 2015)

Court

Commercial Court of Uganda

Case number

Civil Suit No. 516 of 2013

The court held that a 6% weekly contractual penalty interest was unconscionable and reduced it to 24% per annum, also awarding costs to the plaintiff.

• Contractual Interest
• Penalty Clauses
• Unconscionable Terms
• Award Of Costs
• Consent Decree
• Contractual-interest

R.L Jain v Komugisha & 2 Ors (HCCS 98 of 2013)

R.L Jain v Komugisha & 2 Ors (HCCS 98 of 2013) [2015] UGCommC 77 (14 April 2015)

Court

Commercial Court of Uganda

Case number

HCCS 98 of 2013

The court held the third loan was secured by mortgage and exempt from the Moneylenders Act, but struck down compounded interest beyond three months as unconscionable.

• Loan Enforcement
• Mortgage Security
• Contractual Interest
• Moneylending Regulation
• Unconscionable Terms
• Mortgage-security