The Court of Appeal held that in reciprocal contracts, neither party can compel the other to perform if it has not itself performed its obligations. Since MELOHOLDINGS Ltd had already signed the fourth amendment and UMUJYI WA KIGALI refused to sign and instead prepared a new amendment, the latter's conduct constituted obstruction. Therefore, MELOHOLDINGS Ltd was not required to sign again, and UMUJYI WA KIGALI's termination of the contract was unlawful. The court affirmed the lower courts' awards for delivered goods and expected profits on the remaining part of the contract.
The Supreme Court review court found a joint surety breached its guarantee obligations and overturned the prior judgment, awarding damages for late fees.
The Supreme Court held that Uwimbabazi had to repay BRD the loan principal plus agreed interest. It also ruled the guarantor could not be held liable because she was not summoned.