[2008] UGHC 138

[2008] UGHC 138

The court found that there was a valid loan agreement between the plaintiff and the defendant for UGX 2,000,000, repayable within one month at 20% interest. The defendant defaulted, and the plaintiff proved the principal and contractual interest for one month (UGX 2,400,000) as special damages. The claim for further...

Source-derived case information.

Citation
[2008] UGHC 138
Parties
Plaintiff: Westlink Uganda Limited; Defendant: Magezi Charles
Court
High Court of Uganda
Jurisdiction
Uganda
Case Number
HCT-00-CV-CS-0140-2007
Procedural Posture
Civil Suit / Judgment After Default and Formal Proof
Outcome
Judgment for the plaintiff in part.
Legal Topics
Loan Agreements, Breach of Contract, Special Damages, Interest Awards
Source Language
en
Commercial and Corporate Civil Procedure Loan Agreements Breach of Contract Special Damages Interest Awards

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Parties

Westlink Uganda Limited

Plaintiff

Magezi Charles

Defendant

Procedural Posture

Civil Suit / Judgment After Default and Formal Proof

  1. 1 Whether there was a valid loan agreement between the plaintiff and the defendant.
  2. 2 Whether the plaintiff is entitled to the claimed sum and interest as special damages.
  3. 3 Whether the plaintiff is entitled to general damages for breach of contract.

Ratio Decidendi

The court found that there was a valid loan agreement between the plaintiff and the defendant for UGX 2,000,000, repayable within one month at 20% interest. The defendant defaulted, and the plaintiff proved the principal and contractual interest for one month (UGX 2,400,000) as special damages. The claim for further interest up to the date of suit (UGX 19,200,000) was disallowed because the contract did not provide for interest beyond the one-month period, and the plaintiff failed to mitigate loss by timely action or including a penalty clause. The court awarded interest on the special damages at 25% per annum from the date of breach (12/08/2003) until payment in full, and on general...

Court Disposition

Judgment for the plaintiff in part.

Orders

  • Special damages of UGX 2,400,000 awarded to the plaintiff.
  • General damages of UGX 500,000 awarded to the plaintiff.