ISLAMIC UNIVERSITY IN UGANDA

KAMPALA CAMPUS

NAME : TIBESIGWA MERCY RUTH

REG NO : 118-053012-18697
YEAR : 3 EVENING
STREAM : B
SEMESTER : 2
FACULTY : LAW
ACADEMIC YEAR : 2020/2021
TASK : TEST
COURSE UNIT : INTERNATIONAL TRADE AND BUSINESS

LECTURER : CNSL. LUBEGA FAROUQ

COUNSEL SEWAYA MUHMOOD

DATE OF SUBMISSION: 15ZTH /09/2021

Brief Facts
In February 2020, Minya Oils Ltd based in Thailand entered into an agreement with a
Kampala based Kampala Commodities Ltd to supply 50,000 bottles of Palm Oil on CIF
Mombosa basis.

The contract was to be governed by UN Convention on contract for International sale of

goods. These are among the terms of the contract;

a) The bottles are to packed in boxes of 25 each.

b) Delivery is to be made in five months installments not later than the 10 th of each
month.
c) Price, which is to be determed from time to time is payable after each delivery.
d) Each box is to have clear labels.

In respect of the third delivery, there was a delay of a few days due to the ship that had
experienced mechanical problem after the loading on the way to Mombasa. Besides, the
packaging and labeling of the goods was not in accordance with the contract. Some of
the boxes contained 20 bottles.

However, in the fourth delivery the goods were mixed with sunflower oil.

Issues
1. Whether or not Minya Oils Ltd is liable for breach of the contract.
2. Whether or not Minya Oils Ltd has defences.
3. Whether or not Kampala Commodities has redemedies for the breach of the
contract.
4. Whether or not Minya oils Ltd and Kampala Commodities Ltd have rights of a
buyer and seller.

Laws Applicable
The United Nations Convention on contracts for international sale of goods.

Case law

Solutions
1. Minya Oils Ltd is liable for the breach of the contract.
In Ross T Smyth & Co. Ltd vs TD Bailey, Sons & Co. Ltd [1940] 3 ALLER 60 Lord
Wright summarizes the characteristics of a CIF Contract.

The fact that the two companies agreed on the terms and conditions of the
contract, Minya Oils Ltd breached on the fourth delivery where they mixed goods
and third delivery where they packed 20 bottles instead of 25 bottles.
2. Minya Oils Ltd has the defence of severe drought which hit the country and so
could not produce the same quantity of the goods.

3. Kampala Commodites Ltd has remedies as follows;

Specific performance, for instance the right to have the right goods in the right
quantity delivered.
Damages, in the CISG the right to damages is dealt with under Article 74.
Damages for breach of contract by one party consists of a sum equal to the loss
and so Minya Oils Ltd has to reward damages to Kampala Commodities Ltd.

4. Rights of Minya Oils Ltd include;

Right to ship goods that correspond to the contract description at the port of
shipment.
Under S.14 of the sale of goods Act, where a sale took place by description, it was
an implied condition that the goods would correspond to that description.
Terms relating to packaging or the date of shipment are generally regarded as
part of the description of the goods.

Rights of Kampala Commodities Ltd are as follows;

Pay the price for the goods and take delivery of them as required by the contract
and this convention (CISG).
Brief Facts
In March 2020 Ramzoon Investments Ltd (R.I.C) a sister company pala Commodities
Ltd ordered 10 containers of assorted goods on CIF Mombasa from far East Distributors
Ltd (F.E.D) in Dubai. F.E.D contracted with Equator Liners (E.L) for the carriage of
goods by sea from Dubai to Mombasa. The goods were shipped on the EL’s ship called
“Darlington.”

On voyage, the ship’s engine broke down beyond repair and the ship drifted aground on
a rock on a rather deserted stretch of coast on Mafia Island, near Coast of Somalia.

The police were unable to make available constables who could help watch the wreck.
About 5 containers were salvaged. R.I.L claimed against EL for the breach of contract of
carriage of goods safely to Mombasa and damages for loss suffered.

Issues
1. Whether or not E.L is lliable for breach of contract.
2. Wether or not there are rights available for the parties.
3. Whether or not there are remedies for the parties.
4. Whether or not there are defences for the parties.

Laws Applicable
Hague Rules
The Hague Visby Rules
Humburg Rules
Rotterdam Rules
Case Law

1. E.L is liable for breach of the contract. A clean bill of lading strongly indicates
that the goods have been received in good order by the ship owner.

2. Rights of E.L are as follows;

Must accept a good tender of documents and pay for the goods upon the tender of
documents.
Right to name part of destination and to take delivery.
Right to import licenses.

3. Remedies of R.L.
Right of rejection.
Damages for failure to deliver goods.