[2005] UGHC 108

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\mdispDef1\mlMargin0\mrMargin0\mdefJc1\mwrapIndent1440\mintLim0\mnaryLim1}{\info{\title THE REPUBLIC OF UGANDA }{\author Administrator}{\operator skivumbi}{\creatim\yr2010\mo3\dy17\hr9\min48}{\revtim\yr2010\mo6\dy10\hr10\min35}{\version6}{\edmins7} {\nofpages3}{\nofwords1082}{\nofchars5219}{\nofcharsws6289}{\vern32859}}{\*\xmlnstbl {\xmlns1 http://schemas.microsoft.com/office/word/2003/wordml}}\paperw12240\paperh15840\margl1440\margr1440\margt1440\margb1440\gutter0\ltrsect \widowctrl\ftnbj\aenddoc\trackmoves1\trackformatting1\donotembedsysfont0\relyonvml0\donotembedlingdata1\grfdocevents0\validatexml0\showplaceholdtext0\ignoremixedcontent0\saveinvalidxml0\showxmlerrors0\noxlattoyen \expshrtn\noultrlspc\dntblnsbdb\nospaceforul\formshade\horzdoc\dgmargin\dghspace180\dgvspace180\dghorigin1440\dgvorigin1440\dghshow1\dgvshow1 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(}{\pntxta )}}\pard\plain \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 \rtlch\fcs1 \af0\afs24\alang1025 \ltrch\fcs0 \fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 THE REPUBLIC OF UGANDA \line I}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 N THE H}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 IGH COURT OF UGANDA AT MBARARA \par }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid10834798 HCT-05-CV-CS-01}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid5577206\charrsid10834798 11-2000 }{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid10834798 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 DOREEN SADRA RWAMBUYA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 \'85\'85..\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 PLAINTIFF \line VS \line STR}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 ABAG EAST AFRICA LTD \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85DEFENDANT \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 BEFORE: }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid5577206\charrsid10834798 THE HON. MR. JUSTICE P. K. MUGAMBA }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid10834798 \par }\pard \ltrpar\s15\qc \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\ul\insrsid5577206\charrsid10834798 JUDGMENT}{\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \b\insrsid10834798 \par }\pard \ltrpar\s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 The plaintiff seeks the following remedies from the defendants: \line (i) S}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 pecial damages of Shs. 4,800,000}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 /. \line (ii) Costs of the suit. \line (iii) Interest on (i) and (ii) above at the rate of 25%. \line (iv) Any other further relief this honourable cour}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 t may deem necessary to grant. \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 This suit has an interesting background to it. On 1st Apr}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 il 1997 a tenancy agreement was }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 executed between the plaintiff and the def endant whereby the former was to let her premises at Plot 19 Kakika Road, Mbarara to the latter for two years}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 . Rent was agreed at Shs. 400,000}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 / a month payable half-yearly. However, on 1st August 1997 the defendant wrote a letter to the plaintiff terminating the agreement. The plaintiff rejected the letter of termination despite the defendant\rquote s eventual vacation of }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 the premises. Hence this suit. \par }\pard \ltrpar\s15\qj \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 At the hearing of the suit the plaintiff did not attend but Mr. John Gaster Rwambuya was present as her attorney . Evidence of that representation was contained in exhibit P.1. The attorney testified as the sole witness for the plaintiff and in the event the single witness at the hearing. The following issu}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 es were agreed by the parties: \par }\pard \ltrpar\s15\qj \li720\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 1. Whether or not the presenc e of the graves justified the defendant\rquote s vacation of the premises}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 . \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 2. Whether the presence of the graves c}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 reated a condition subsequent. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 3. Whether or not the tenancy agreement was at an end at the time of the notice by the defendant.}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 4. Whether the existence of the }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 grave amounted to frustration. \par }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 5}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid5577206\charrsid10834798 . }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 Remedies available. \par }\pard \ltrpar\s15\qj \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid10834798 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 The tenancy agreement was received in evidence as exhibit P.2. A letter dated 1st August 1997 written by the defendant giving notice to vacate the premises effective September 1997 was a lso received. It is exhibit P.3. Exhibit P.5 was yet another letter from the defendant to the plaintiff giving reasons why the defendant was vacating the premises. The reasons being existence of a grave within the compound of the demised premises and ther e being no telephone service available at the house. Needless to say, the plaintiff did not find the reasons given well founded. It was the evidence of the plaintiff that the defendant had, prior to signing the tenancy agreement, inspected the premises and found them suitable and that at the time of the inspection the grave was in situ. Furthermore the agreement was executed with the full knowledge that a telephone facility }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 did not exist at the premises.

\par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 The defendant\rquote s counsel did not attend court on the d ay to which the case had been adjourned for defence. No reason was ever given for the default In the event the case for the defendant was deemed closed and counsel for the plaintiff procee}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 ded to make final submissions. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 Regarding the first, second and four th issues, the uncontested evidence from the plaintiff is that the premises to be let were inspected and the tenancy agreement was executed in the wake of the inspection. There is nothing to suggest the grave in the compound was not seen, nor was the cont r ary urged by the defence. My view therefore is that the defendant was not justified to vacate the premise since it had all along been privy to the presence of the grave. Need I add that conditions for frustration did not exist? This is because if events d o occur which make the performance of the contract impossible and the frustrating events are not the fault of either party, then the contract is brought to an end with neither party at fault. In order for the doctrine of frustration to be in effect perform ance must be impossible, not merely difficult. See }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 Twentsche Overseas Trading Co. Ltd vs Uganda Sugar Factory Ltd. (1949) 12 EACA 1. }{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid10834798 \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 As concerns the third issue, the defendant\rquote s notice while it is true to say that not every breach entitles the innocent par ty to treat the contract as discharged, where a vital part of the contract is affected such as where the other party has no intention of performing its contract it will be treated as such. See }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid5577206\charrsid10834798 Hochster }{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid10834798 vs De la Tour (1853) 2 E & B 678}{\rtlch\fcs1 \af0 \ltrch\fcs0 \ul\insrsid5577206\charrsid10834798 118 E. R. 922. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 Even wh ere no expressed intention to repudiate has been given the test for repudiation is whether the conduct of a party would cause a reasonable person to come to the conclusion that the party did not intend to or was unable to fulfill its contract. See }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid10834798 Khatij}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 abai Jiwa Hasham vs Zenab d/o Chandu Nansi [196}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid10834798 0]}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 EA. 7. }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 My answer to the issue is}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 therefore in the affirmative. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 From the foregoing I find the defendant did breach the contract and so this suit must succeed. I must n}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 ow proceed to the final issue. \par }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 The plaintiff\rquote s evidence is that after the defendant had vacated her premises it took her twelve months before she got another tenant. She claims rent from the defendant for the period her premises were without a tenant in form of damages. In an action for breach o f contract a plaintiff is entitled to recover only such part of the loss resulting as could reasonably be contemplated by the parties at the time of the contract. Reasonable contemplation depends on the knowledge of the parties at the time. See }{ \rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5065903 Woodruff vs Dupont 119641 EA 40}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 4 Victoria Laundry (Windsor}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5065903 ) Ltd vs Newman Industries Ltd [1949]}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 2KB 528}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid13375453 .}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\ul\insrsid5577206\charrsid10834798 }{ \rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 In the case at hand both the plaintiff and the defendant were privy to the life of the agreement. They were privy also to the rent payable a mouth. Above all they were privy to the fact that during the period of the agreement the plaintiff was entitled to

the certain income. Consequently for the period no income was forthcoming to the plaintiff during the life of the tenancy agreement the plaintiff was entitled to damages. 1 find it not disputed that the period the plaintiff received no rent from the premi ses was twelve months. It is not disputed either that the expected rent was Shs. 400,000/ a month. The amount due to the plaintiff as }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid10834798 damages therefore is Shs. 4,800,000/}{\rtlch\fcs1 \ai\af0 \ltrch\fcs0 \i\insrsid5577206\charrsid10834798 = }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 whi}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5065903 ch I hereby award at 20% per ann}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 um from the date the suit was filed until realization in full. I would also award costs of the suit with an interest of 20% per annum from the date of taxation until realization in full. \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid5065903 {\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5065903\charrsid8146100 P. K. Mugamba \par Judge}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5065903 \par }\pard \ltrpar\s15\qc \li0\ri0\sl360\slmult1\widctlpar\wrapdefault\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\ipgp1\pararsid15296609 {\rtlch\fcs1 \ab\af0 \ltrch\fcs0 \insrsid5577206\charrsid5065903 3rd }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid5065903 February}{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid5577206\charrsid10834798 2005 }{\rtlch\fcs1 \af0 \ltrch\fcs0 \insrsid340286\charrsid10834798 \par }{\*\themedata 504b030414000600080000002100828abc13fa0000001c020000130000005b436f6e74656e745f54797065735d2e786d6cac91cb6ac3301045f785fe83d0b6d8 72ba28a5d8cea249777d2cd20f18e4b12d6a8f843409c9df77ecb850ba082d74231062ce997b55ae8fe3a00e1893f354e9555e6885647de3a8abf4fbee29bbd7 2a3150038327acf409935ed7d757e5ee14302999a654e99e393c18936c8f23a4dc072479697d1c81e51a3b13c07e4087e6b628ee8cf5c4489cf1c4d075f92a0b 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