[2006] UGCommC 26

[2006] UGCommC 26

The court held that the plaintiff, a limited liability company, was not a party to the loan agreements, which were made between the Government of Uganda (represented by the Rural Microfinance Support Project) and the first defendant. The Rural Microfinance Support Project was not a legal person and could not have...

Source-derived case information.

Citation
[2006] UGCommC 26
Parties
Plaintiff: The Micro Finance Support Centre Ltd; Defendant: The Uganda Micro Entrepreneurs Association Ltd; Defendant: Jeninah Mary Ntabgoba; Defendant: Kayongo Nkajja Godfrey
Court
Commercial Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CC-CS 1007 of 2004
Procedural Posture
Civil Suit / Preliminary Objection Ruling
Outcome
plaint struck out with costs to defendants; leave to appeal granted
Legal Topics
Privity of Contract, Assignment of Contracts, Corporate Personality, Cause of Action, Striking Out Pleadings
Source Language
en
Commercial and Corporate Civil Procedure Privity of Contract Assignment of Contracts Corporate Personality Cause of Action Striking Out Pleadings

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Parties

The Micro Finance Support Centre Ltd

Plaintiff

The Uganda Micro Entrepreneurs Association Ltd

Defendant

Jeninah Mary Ntabgoba

Defendant

Kayongo Nkajja Godfrey

Defendant

Procedural Posture

Civil Suit / Preliminary Objection Ruling

  1. 1 Whether the plaint discloses a cause of action against the defendants.
  2. 2 Whether a company can sue on a contract made before its incorporation or to which it was not a party.
  3. 3 Whether rights under the contract were properly assigned to the plaintiff.

Ratio Decidendi

The court held that the plaintiff, a limited liability company, was not a party to the loan agreements, which were made between the Government of Uganda (represented by the Rural Microfinance Support Project) and the first defendant. The Rural Microfinance Support Project was not a legal person and could not have been succeeded by the plaintiff company. There was no evidence or pleading of a legal or equitable assignment of rights under the agreements to the plaintiff, nor was any required documentation attached to the plaint. The law is clear that only a party to a contract can sue on it, and a company cannot enforce contracts made before its incorporation unless a new contract is made...

Court Disposition

plaint struck out with costs to defendants; leave to appeal granted

Orders

  • The plaint is struck out for disclosing no cause of action.
  • Costs awarded to the defendants.