[2005] UGCommC 50

[2005] UGCommC 50

The court held that while a company cannot generally enforce contracts entered into before its incorporation, subsequent acknowledgment of debt or continued dealings may constitute novation or ratification, creating a new cause of action independent of the original contract. The question of whether the plaintiff was...

Source-derived case information.

Citation
[2005] UGCommC 50
Parties
Plaintiff: Ecumenical Church Loan Fund (U) ECLOFF; Defendant: John Bwiza; Defendant: W. Tumuhairwe; Defendant: Kahimakazi T/A Kamabare Women's Development
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CC-CS 614 of 2004
Procedural Posture
Civil Suit / Ruling on Preliminary Objections
Outcome
Preliminary objections overruled; case to proceed to trial.
Legal Topics
Preincorporation Contracts, Money Lending Licensing, Agency and Principal, Ex Turpi Causa Defence
Source Language
en
Commercial and Corporate Civil Procedure Preincorporation Contracts Money Lending Licensing Agency and Principal Ex Turpi Causa Defence

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Parties

Ecumenical Church Loan Fund (U) ECLOFF

Plaintiff

John Bwiza

Defendant

W. Tumuhairwe

Defendant

Kahimakazi T/A Kamabare Women's Development

Defendant

Procedural Posture

Civil Suit / Ruling on Preliminary Objections

  1. 1 Whether the contract entered into before the plaintiff's incorporation is enforceable against the defendants.
  2. 2 Whether the plaintiff, not being a registered money lender, can enforce the contract.
  3. 3 Whether the suit is properly brought in the plaintiff's name despite alleged agency for a disclosed principal.

Ratio Decidendi

The court held that while a company cannot generally enforce contracts entered into before its incorporation, subsequent acknowledgment of debt or continued dealings may constitute novation or ratification, creating a new cause of action independent of the original contract. The question of whether the plaintiff was a money lender within the meaning of the Act, and whether the contract is unenforceable due to lack of a money lending license, requires evidence and cannot be determined as a pure point of law. The court also found that the issue of agency and the propriety of the suit being brought in the plaintiff's name are factual matters. Accordingly, all preliminary objections raised by...

Court Disposition

Preliminary objections overruled; case to proceed to trial.

Orders

  • All preliminary objections raised by the defendants are overruled.
  • All issues raised shall be determined on evidence at trial.