Mercantile Law I LLB2 Course Outline

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UGANDA CHRISTIAN UNIVERSITY


SCHOOL OF LAW
BACHELOR OF LAWS (LLB) YEAR TWO
MERCANTILE LAW I (The Law of Sale of Goods & Agency)
THE ACADEMIC YEAR 2024/2025

COURSE OUTLINE:

Course Title: Law of Sale of Goods & Agency


Course Code: BLAW2104
Contact Hours: 4 Lecture Hours & 2 Tutorial Hours per week
Credit Units: 5
Lecturer: Mr Kashaija Emmanuel
Tutorial Asst:

A. Course Description
The law of sales is an extension of the law of contact with roots in the over 900-year-old
mercantile custom and usage. Lex mercantoria (the law merchant). This inquiry into domestic
trade in goods is intended to introduce you to the fundamental knowledge and skills in the area
of sales and related transactions. Trading in goods has been a central part of the social and
economic fabric of Uganda since time immemorial. However, from the time of colonialism
certain changes were introduced in the way, formal commercial transactions were conducted
with the adoption of the Sale of Goods Act (1893) (UK) in the legal regime with necessary
modifications to suit local circumstances. The present course of study seeks to enlighten the
student on the various provisions of the Uganda Sale of Goods and Supply of Services Act,
2017 and its application to daily commercial transactions involving the transfer of property in
goods as well as other kinds of transactions related to the sale of goods, supply of services and
agency.

B. Course Aim
This course is intended to develop knowledge of the legal principles that underlie the everyday
act of buying and selling goods and supply of services from a domestic perspective and provide
students with knowledge and appreciation of key issues relating to the sale of goods and the
law of agency in Uganda. It is also intended to develop skills in the construction of the sale of
goods and supply of services contracts.

C. Course Objectives
After the course, through interactive lectures, discussions, presentations, and research, the
student should be able to:
(i) Develop and understand the origins of Uganda’s law of sale of goods, supply of services
and the related transactions and the law of agency;

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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(ii) Understand the fundamental principles of the law of sales of goods, supply of services
and the law of agency;

(iii) Distinguish a sales transaction from other commercial transactions that almost resemble
it. i.e. Barter, Bailment, Hire purchase, Agency, conditional sales, Contract of loan on
the security of goods, Contract for the supply of services etc.

(iv) Identify the different participants in sales transactions, their obligations and potential
legal liabilities.

(v) Suggest remedies/ solutions to legal problems/disputes that may arise in the course of
the sale of goods and supply of services transactions;

(vi) Identify gaps in the law and suggest possible reforms in light of the changing local
circumstances and global trends in the sale of goods and supply of services practices.

D. Methodology of Study
Lecture sessions will be points of contact between the lecturer/tutor and the students. Students
are expected to attend lectures, ask questions, discuss and receive guidance for further study
and research. Students are required to read and comprehend the recommended texts and cases
and will be called upon to make presentations in class for discussion.

Reliance on ‘handouts’ from the lecturer is discouraged since the very focus of legal education
at this level is individual or group study to contribute to the discussion in the class that will
enable you to understand, and arrive at new and important realizations on the subject.

A good understanding of market trends in Uganda will also enable an excellent articulation of
views in oral contributions in class, and the ability to incorporate that outlook into your
coursework and examinations will attract high grades.

Coursework assessments and examinations will be given according to the semester schedule.
Coursework contributes 30%, while the final exam contributes 70% to the final grade. You will
receive instructions and assessment criteria before undertaking the coursework.

E. Requirements
The students taking this course should have a good grasp of the law of contract, which is the
foundation of all issues under consideration.

Note: Every student undertaking this course must personally own a copy of the Sale of Goods
and Supply of Services Act, 2017, the Contracts Act, 2010 and a highlighter pen.

The student is advised to meticulously attend to his/her work at all stages of this course of
study. With that caution, diligence and industriousness will be rewarded, while incompetence
will be treated with deserving contempt.
Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer
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F. Faith in teaching
Where applicable we shall explore how, and to what extent Christianity informs aspects of the
course unit. See James 4:13, Mark 11:15-17, and Leviticus 25:14 among others.

G. Course Materials

i) Recommended Reading:
(i) P.S. Atiyah (2005). The Sale of Goods, 11th ed, Pitman, London, UK/ (2000) 10th Edn.

(ii) Robert Lowe (1976), Commercial Law, 5th Edition (London: Sweet & Maxwell)

(iii) K.I Laibuta (2006), Principles of Commercial Law, Law Africa Publishing, Kenya.

(iv) John Joseph Ogola (2005), Business Law, Focus Publishing Ltd, Kenya.

(v) David Kelly, et al (2005). Business Law, 5th ed, Cavendish Publishing Ltd, London.

(vi) Dennis Keenan (2003), Smith and Keenan’s Law for Business,12th ed, Pearson
Longman.

(vii) LS Sealy and RJA Hooley (2003), Commercial Law Text, Cases and Materials, 3rd Ed
(London: LexisNexis Butterworths)

(viii) Keith Abbott et al, (2002), Business Law, 7th ed, Thomson, UK

(ix) Paul Dobson (1997), Charlesworth’s Business Law, 16th Edn, Thomson, Sweet and
Maxwell, London.

(x) Hans-W Michkitz, Jules Stuyck, Evelyne Terryn (2010), Cases Materials and Text on
Consumer Law (Oxford, HartPublishing).

(xi) Fridman, G. (2004), The Sale of Goods in Canada, 5th Edition (Toronto: Carswell)

(xii) Halsbury’s Lawsof England (3rd edition).

ii) Relevant Statutes:


1) Sale of Goods and Supply of Services Act, No. 10 of 2017.
2) Contracts Act, No. 7 of 2010.

iii) Websites
1) Uganda Legal Information Institute, www.ulii.org (Decisions of courts of Uganda).

2) British & Irish Legal Information Institute, www.bailii.org (British, Irish & European
Union case law).
Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer
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1. Construction of the Sale of Goods Act


The Sale of Goods by P.S. Atiyah 9th Edition pages 2-4
• Bank of England v. Vagliano Brothers [1891) A.C 107 at p.145
• Re Wait [1927] 1 Ch 606 Atkin’s judgment
• Ashington Piggeries Ltd v Christopher Hill Ltd [1972] AC 441 Lord Diplock’s judgment.

1.1 Definition of important terms


Section 1 of the Sale of Goods and Supply of Services Act for the definition of Goods, Services
and other terms.

Money
• Moss v. Hancock [1899] 2 Q.B 111

Emblements, Industrial growing crops and Things attached to the land


• Torkington v Maggee [1902] 2 K.B 427,430
• Ghulam Kadir v British Overseas Engineering Corporation (E.A) Ltd [1957] E.A 131
• Morgan v. Russell and Sons [1909] I K.B 357
• Ingram v. Little [1961] 1 Q.B 31

Classification of Goods
Sections 1 and 6(1) of the Sale of Goods and Supply of Services Act
• Isaac Bishari v. Vitafoam Ltd SCCA 29 of 1992
• Re Wait [1927] 1 Ch 606 Atkin’s judgment

1.2 Distinction between a contract of sale and other commercial contracts.


Atiyah, P.S, Sale of Goods, pages 5-32
Robert Lowe, Commercial Law pages 150-168 Sale of Goods Contract as distinguished from
other contracts

Contract of sale and agreement to sell


• Wamala Growers Cooperative Union v. Attorney General [1997] III KALR 73
• Lloyd’s Bank Ltd v. Bundy (1974) A.C 72

Contract of sale and hire purchase contract


• Helby v. Mathews, [1895] A.C. 471, H.L
• Matayo Musoke v. Albhai Garage [1960] EA 31.

Contract of sale and bailment


• Chapman Bros v. Verco Bros (1933)49 CLR 306
• Borden United Kingdom Ltd v. Scottish Timber Product Ltd [1981] CH.D. 25

Sale and supply of services


• Lee v. Griffin (1861) 1 QB 272

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Robinson v. Graves [1935] 1 K.B. 579,589


• Sultani (Motor Division) Limited v. J.B Morgan [1960] E.A. 434

1.3 Formation of the Contract of Sale of Goods

Terms of the Contract


• Hedley Byrne Co Ltd. v. Heller Partners [1964] A.C 465
• Oscar Chess Ltd v. Williams [1957] 1 WLR 370

Mere puff
• Smith v. Land & House Property Corporation (1884) 28 Ch. D 7.
• Brown v. Raphael [1958] 2 All E.R. 79

Conditional precedent
• Bannerman v. White (1861) 10 C.B 844

Representation
• Routledge v McKay [1954] 1 WLR 615
• Oscar Chess Ltd v. Williams [1957] 1 WLR 370

Contractual Terms (Conditions and Warranties)


• Chapman Bros v. Verco Bros (1933)49 CLR 306
• Harling v. Eddy [1951] 2 K.B 739
• A.H. Adam v. The Tanga-Mombasa Transport Company (1955) 28 KLR 14
• Devshi v. Mohanlal (1951) 18 EACA 79
• Robinson v. Graves [1935] 1 KB 579

Formalities of a contract of sale of goods


• Rubemba v Skanka Jensen (U) Ltd [2002]1 E.A 241
• Karia v. Shah [1962] E.A 43
• Savijan v. Kenya Garage (1952

2. Implied terms in a contract of sale of goods and supply of services


(Sections 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 59 (3) and 67)
Robert Lowe, Commercial Law, pages 168-192
Sealy & Hooley, Commercial Law, Text, Cases and Materials, pages 370-396

a) Implied Term as to Time (S. 11 and 68)


• Charles Rickards v. Oppenheim [1950] 1 K.B 616
• Bowes v. Shand [1877] 2 A.C 455
• Hartley v. Hymans [1920] 3 K.B 475

b) Implied Condition as to Title (S. 13(1), (3))

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Niblett v. Confectioners Materials Co. Ltd. [1921] 3 KB 387


• Rowland v. Divall (1923) 2 K.B 500
• Butterworths v. Kingsway Motors (1954) 1 WLR 1296
• Ali Kassam Ltd v. The United Africa Co (Tanganyika) Ltd [1958] E.A 204
• Henry Hidaya Kanga v. Manyema Manyoka [1961] EA 705

c) Warranty that Goods are free of Encumbrances (section 13(2)(a) and (4))
• Official Assignees of Madres v. Mercantile Bank of India [1938] A.C. 287
• North Western Bank Ltd v. John Poynter & Son (1895) A.C 56

d) Warranty of Quiet Possession (S. 13(2)(b) and (5))


• Maier v. Kersten [2005] 1 EA 245
• Microbeads A. G. v. Vinhurst Road Markings Ltd [1975] 1 WLR 218
• Lakhamshi Bros. Ltd v. R. Raja & Sons [1966] EA 178
• Niblett Ltd. v. Confectioners’ Materials Co. Ltd. [1921] 3 KB 387

e) Implied Condition that Goods shall correspond with the description (S. 14)
• Hwan Sung Industries Ltd v. Tajdin Hussein & 2 Others Civil Appeal No. 08/2008
• Livio Carli & Others v. Salem & Mohamed Ban Bashanfer & Ors [1959] E.A. 701
• PanAfrican Trading Agency v. Chande Bros (1952) EACA 141.
• Abdulla Ali Nathoo v. WaljiHirji [1957] E.A 207
• Varley v. Whipp [1900]1 QB 513

f) Implied Condition that Goods are fit for a particular purpose (S. 15(1) and (2))
• Mable Bakeine v YUASA Investments Ltd (HCCS 136 of 2013) [2014]
• Goustar Enterprises Ltd v. John Kakas Oumo SCCA No. 8 of 2003
• Steveson v. Rogers [1991] 1 ALL ER 613 CA
• Doola Singh & Sons v. Uganda Foundry & Machine Works [1945] 12 EACA 33
• Tehran Europe Co. Ltd v. St Belton Tractors Ltd (1968) 2 Q.B 545
• Ashington Piggeries Ltd v. Christopher Hill Ltd [1972] 2 A.C 441 / [1971]1
All E.R. 847
• Norman v. Overseas Motor Transport [1959] EA 131
• Omer Saleh v. Besse & Co [1960] EA 907.
• Spencer Trading Co Ltd v. Devon (1947)1 ALLER 284.
• Sugar Corporation of Uganda Ltd v. Lawsam Chemical U Ltd [2003]2 E.A 679
• BSS Group Plc v. Makers (UK) Ltd (t/a Allied Services) [2011] EWCA Civ 809

g) Implied Condition that goods be of satisfactory quality (S. 15(3), (4), (5) & (6))
• Grant v. Australian Knitting Mills [1936] AC 85
• Niblett v. Confectioners Materials Co. Ltd. [1921] 3 KB 387
• Bartlet v. Sidney Marcus Ltd [1965] 1 WLR 1013
• Doola Singh & Sons v. Uganda Foundary & Machine works [1945] 12 EACA 33
• Olette v. Jordan (1918) 2 KB 41 p.47 Judge Atkin

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Joseph Emmanuel v. Nash [1962] 1 WLR 16

h) Trade Usage (S. 15(7))


• Peter Darlington Partners Ltd v. Gosho Co. Ltd [1964] 1 Lloyd’s Rep 149
• Flency & King Mohammed Walli & Co. 1 ZLR 17
• Hutton v. Warren (1836) 1 M & W 466

i) Quality of materials used in a contract for the supply of services (S. 16)
• Orient Bank Ltd v. Gilfinn Air Conditioning (U) Ltd. (Civil Suit No. 241 of 2015)
• Watson v. Buckley [1940] 1 ALL ER 173
• Lynch v. Thorne [1956]1 WLR 303
• Young and Marten v Macmanus Childs Ltd [1969] 1 AC 454
• Norta Wallpapers v. Sisk and Sons (Dublin) (1977)14 BLR 49

j) Sale by Sample (S. 17)


• Setramaco v. BOG Lubiri S.S (2005) HCSS No. 476 of 2005
• Stools & Busks Ltd v. Blinker Bic & Co. (1956) 1 Lloyds 228 QB
• Godley V Perry [1960]1 All ER 36
• Drummond v. Van Ingen [1887] 2 AC 284

k) Duty of care and skill in the supply of services (S. 18)


• Orient Bank Ltd v. Gilfilian Air Conditioning (UG) Ltd (Civil Suit 241 of 2015)
• Bolam v Friern Hospital Management Committee [1957] 2 All ER 118
• MT Højgaard A/S (Respondent) v EON Climate & Renewables UK Robin Rigg East
Limited and another (Appellants) [2017] UKSC 59
• Young and Marten v Macmanus Childs Ltd [1969] 1 AC 454

l) Remedies for breach of condition or warranty (Ss. 20 and 21)

(i) Exclusion of seller’s liability (Ss. 19 and 67)


• Photo productions v. Securicor (1980) A.C 827, (1980)1 ALL ER 556.
• Wallis, Son & Wells v. Pratt and Haynes (1911) A.C. 294
• L’estrange v. F. Gracoub Ltd (1934)2 KB 394
• Karsales (Harrow) Ltd v. Wallis [1956] 1 WLR 936
• Suisse Atlantique Socieity v. N.V Rotter Damishe (1966)2 ALL ER 61
• Wallis v. Pratt [1911] AC 294
• Andrews v. Singer [1934] 1 KB 170

(ii) Transfer of property and title under the contract of sale of goods
Meaning of property, Consequences of the passing of property, Definition of property
Robert Lowe, Commercial Law, pages 193-203
Battersby and Preston (1972) 35 MLR 268

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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Passing of property
Sale of Goods and Supply of Services Act, sections 22, 23, 24 and 25

Rules as to the passing of property


Sale of Goods and Supply of Services Act, section 26

Unconditional contract for the sale of specific goods in a deliverable state


Sale of Goods and Supply of Services Act: Section 26 (a)
• Isaac Bishari v. Vitafoam Ltd SCCA No. 29/1992 / [1994] VI KALR 180
• Anwar v. Kenya Bearing Co [1973] E.A 352
• Kressman & Co v. Lakhani Ltd [1964] E.A 249
• Dennant v. Skinner [1948] 2 KB 164
• Varley v. Whipp (1900) 1 Q.B 31
• Underwood v Burgh Castle Brick [1922] 1 KB 343
• Rose Nakato v Asuman Muwonge [1978] HCB 298
• Johana Mbugwa v. Mwangi Mugwe [1949] 16 EACA 1
• Re Shipton Anderson & co. ltd v Harrison Bros & co ltd (1915) KB 676
• Abendego Absolom Ongom v Amos Kaheru [1995]3 KALR 7
• East African Navigators Ltd v Mohanlal [1968] E.A 535
• Potgieter v Stumberg & anor [1972] E.A 370
• Fiat Kenya Ltd v Roble [1992] E.A 11
• Osapil v Kaddu [2000]1 EA 193
• Bwiriza v Osapil [2003]1 E.A 30
• Chapman Brothers Ltd v Verco Brothers Co. Ltd [1933] 49 CLR 25
• Shilling v AG [1988-90] HCB 11

(iii) Transfer of title by Non – owner (S. 29)


Robert Lowe, Commercial Law, pages 208-225

General Rule (no one can pass a better title than that which they possessed):

(a) Nemo dat quod non habet (S. 29)


• Bishopsgate Motor Finance Corpn v Transport Brakes Ltd [1949]1 K.B 322
• Steven Lubega v. Barclays Bank (U) Ltd C.A No.2 of 1992 14 5)
• Johana Mbugwa v Mwangi Mugwe (1949) 16 EACA 1.
• Animal Feed Products Ltd v. AG C.S No. 788 of 1990
• Cundy v. Lindsay [1874-80] ALL ER 1149
• Dennant v Skinner (1948)2 KB 162.
• Butterworth v. Kingsway Motors [1954] 1 W.L.R 1268
• Matayo Musoke v. Alibhai Garage Ltd [1960] E.A 31
• Mamujee Brothers v. Awadh (1969) E.A 520
• Mukono Cycle Mart Ltd v. Co-operative Bank [1987] HCB 66

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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(b) Exceptions to the general rule (S. 29(2), 30 and 32

i. Sale under the order of court


• Larner v. Fawcett [1950]2 ALLER 727

ii. Estoppel by Words


• Henderson v. Williams [1895]1 QB 521

iii. Estoppel by Conduct


• Hirji Kapadia v. Laximidus [1964] EA 378
• Eastern Distributors Ltd v. Goldring [1957]2 Q.B 600
• Mercantile Bank of India Ltd v. Central Bank of India Ltd [1938] AC 287
• Lloyds and Scottish Finance v. Williamson [1965] 1 ALLER 641
• Jerome v. Bentley [1952]2 ALLER 114

iv. Estoppel by Negligence


• Dennant v Skinner (1940)2 K.B 164
• Central New Bury Car Auctions Ltd v. Unity Finance Ltd [1957]1 Q.B 371
• Wilson & Meeson v. Pickering [1946] 1 ALL ER 394
• Campbell Discount Co. v. Gall [1961] 1 Q.B.431
• Mercantile Credit Co. Ltd v. Hamblin [1965] 2 Q.B. 242

v. Agency
• Stadium Finance Ltd v. Robbins [1962] 2 Q.B 664
• Folkes v. King [1923] 1 K.B 282
• Lloyds Bank v. Bank of America [1988] 2 K.B 147
• Staffs Motor Guarantee v. British Wagon Co [1934] ALL ER 322/ [1934]2 KB 305
• Pearson v. Rose & Young Ltd [1951] 1 K.B 275
• Lee v. Butler [1893] 2 Q.B 318
• Oppenheimer v. Fraser [1907] 1 K.B 50

vi. Sale under voidable title (S.30)


• Mamujee Brothers v Awadh [1969] E.A 521
• Phillips v. Brooks [1919] 2 K.B 243
• Car & Universal Finance Co v Caldwell [1965] 1 QB 525.
• Cundy v. Lindsay [1879]3 A.C 459
• Ingram v. Little [1961]1 QB 31
• Lewis v. Averay [1972]3 ALLER 907

vii. Sale by the seller in possession (S.32 (1))


• Eastern Distributors Ltd v. Goldring [1957]2 Q.B 600
• Staff Motor Guarantee Ltd v. British Wagon [1934] ALLER 322
• Union Transport Finance Ltd v. Ballardie [1965] ALLER 105

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Worcester Finance Co. v. Cooden Engineering Co. Ltd [1971]3 WLR 661
• Olds Discount Ltd v Krett (1940) 2 K.B 117
• Cundy v Lindsay (1978) A.C 459

viii. Sale by the buyer in continuing possession (S. 32(2))


• Helby v Mathews (1895)2 Q.B 318
• MatayoMusoke v. Allibhai Garage [1960] EA 31
• Pacific Motor Auction v. Motor Credits (1965) A.C 667
• Mubarak Ali v. Wali Mohammed (1938)18 KLR 23
• Lee v. Butler (1893)2 Q.B 318
• Kressman v. Lakhani (1964) E.A 249
• Newtons of Wembley v. Williams (1964)3 ALLER 532 C.A

ix. Sale in the market overt


• Bishopsgate Motor Finance Corporation v. Transport Brakes [1949]1 KB 322
• G.N. Sarangi v. Attorney General Civil Suit No. 18 of 1968
• Reid v. Commissioner of Police [1973] Q.B. 551

x. Effect of theft or fraud on the title of the owner of converted goods (S. 31)

f. Risk and Frustration (S. 27)


Bridge, International Sale of Goods, Clarendon Press, Oxford, 1999, paras. 10.40-10.57 at pp.
390-398 and Robert Lowe, Commercial Law, pages 203-205

• Hedley Byrne v. Heller [1964] AC 465


• Stern’s Ltd v. Vikers [1923] 1 K.B 78
• Karia & Co. Ltd v Dhanani [1969] E.A 392
• Spear Motors L td v. Banyakole Kweterana [1994]3 KALR 70
• Couturier v. Hastie [1856] 5 A.C 73.
• Turnbull v Rendell [1948] 2 All ER 1036
• H.R. & S. Sainsbury Ltd v. Street [1973] 3 All ER 1127
• Candler v. Crane Christmas Co. Ltd [1951] 2 KB 164
• Barrow Lane v Phillips [1929] 1 K.B 574
• Demby Hamilton v Bearden (1949) 1 ALLER 434
• Horn v Minister of Food (1948)2 ALLER 1036
• Tsakirogolou v Noblee Thorl (1961) 2 WLR 633
• Twentsche Overseas Trading v. Uganda Sugar Factory [1945] 12 EACA 1
• Victoria Industries Ltd v. Ramanbhai & Brothers Ltd (1961) EACA 11

g. Duties of parties to the contract sale of goods and supply of services. (S. 34)

(i) Duties of the seller


a) Duty to pass a good title

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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b) Duty to supply the goods at the right time


c) Duty to supply the goods in the right quantity
d) Duty to supply goods of the right quality
e) Duty to deliver the goods

NB: The duties of the seller above in items (a) to (d) were handled under Part 2 in the (implied
terms and conditions)

Duty to deliver goods


• Marble Flock Co v. Universal Furniture Parts Ltd (1934) 1 K.B 148
• Smith & Co. v. Bailey & Co. (1940) 3 ALL ER 60
• Block’s case [1922] 2 K.B 155
• Lovey & Co v. Goldberg [1922] 1 K.B 688 at 692
• Jackson’s Case (1970) 2 K.B 937
• Singh v Feram (1945)12 EACA 21

(ii) Duties of the buyer

Duty to pay the price (S.35)


• Saunder’s case (1919) 2 K.B 581
• First Sports Ltd v. Barclays Bank [1993]3 ALL ER 789
• Norman v. Ricketts [1886]3 TLR 182
• Harri Singh v General Workshops [1951] 18 E.A.C.A 4
• W.J. Allan & Co. Ltd v. Elnasil Export & Import Co Ltd. (1972) 2 Q.B 179.
• Kressman& Co. V. Laknadi Ltd (1964) E.A 294

Duty to take delivery


• Kadu Enterprises (U) Ltd v Prebal [1995] 5 KALR 67
• Kampala General Agency Ltd v Moody’s [1963] E.A 549
• Alinius v Globe Merchantile Corpn Ltd (1968) E.A 114

h. Basic Rule: Caveat Emptor.


An implied condition that goods shall correspond with Description.
• Abdul Saleni v East African Trading Co. 2 EALR 12.
• Livio Carli v Salem Ltd v Sunderji 16 EACA 72.
• Alibhai Panju & Sons Ltd v Sunderji 16 EACA72.
• Pan African Trading Agencies v Chande Bros 19 EACA 141.
• Juthalal Velji v Gulamjusen R Jirraji 16 EACA75.
• Nurmohamed Murji Dattu EACA 294.
• Varley v Whipp (1900)1QB 513.
• Re Moore & Landaner (1921)2KB 519, CA.

i. The Implied condition that goods must be fit for a particular purpose.

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Norman v Overseas Motor Transport Ltd. (1959 EA 131.


• Omer v Besse (1960) EA907.
• Dola Singh v Uganda F & M Works 12 EACA 33.
• Ashington Paggeries v Christopher Hill Ltd. (1972) AC 441.
• Baldry v Marshall (1925) 1 KB 260.

j. Implied Condition that goods are Merchantable


• Omer v Besse 2 (1960) EA907.
• Doola Singh v Uganda Foundry & Machinery 12 EACA33.
• Bristol Tramways Co. Ltd v Fiat Motors Ltd [1910] 2 KB 831.
• Wren v Holt (1903) 1K.B.668.
• Wilson v Richet Cooherell (1954) 1QB 598.
• Gedding v Marsh (1929) 1 KB 668.
• Nibelett v Confectioners Materials Co. Ltd (1921) 3KB 387.

k. Terms implied by trade usage.


• Flency v King Mohammed Wallie & Co. IZLR17.

l. Terms implied in sales by sample.


• Jafferali Abdul, v Jan Mohammed Ltd., 18 EACA 21
• Shaha Rhambhai Patel 23 EACA329.
• Ali Kassam Virani Ltd Janmohamed Ltd 18 EACA 21.
• Godley v Perry (1960)1 ALL ER 254.

m. Remedies (Ss.50, 51, 52, 55, 60, 61, 62, 63, 64, 65 and 66)
Robert Lowe, Commercial Law, pages 232-251
Remedies of the seller

A. Remedies in rem

(a) Unpaid seller’s rights and powers over the goods (Ss. 50 and 51)
• Mubarak Batesaki v Mubarak Magala C.A No. 29 of 2002
• Omer v Besse (1960) E.A 907

(b) Unpaid seller’s right to lien (Ss. 52, 53 and 54)


• Uganda Hire Purchase Co. ltd v Magamboni [1978] HCB 54
• Guster Adolf Weingut v Leslie (1967) E.A
• Mohamed Hussein v Kashayji (1952) 19 EACA 162
• Mount Ltd V Jay & Jay [1960]1 QB 159
• Merchant Banking Co v. Phoenix Bessemer Steel Co. (1877) 5 Ch. D 205
• Great Eastern Railway v. Lord’s Trustee [1909] AC 109

(c) Unpaid seller’s right of stoppage in transit (Ss. 55, 56 and 57)

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


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• Booth S. Co v. Cargo Freight Co. [1916]2 KB 570


• Mount Ltd v. Jay & Jay [1960]1 QB 159
• Bethel Q. Co. v Clerk & Co. (1988) 20 Q.B.D 615
• Mordaunt v British Oil & Cake Mills Ltd [1910] 2 K.B 502

(d) Unpaid seller’s right of resale (Ss. 58 and 59)


• Callagher v Shiloock (1949)2 K.B 765
• Baghwanti & Co. v Mohamed (1953)26 KLR 12

B. Remedies in personam

(i) Action for the Price-S.60


• Justine Olijo v AG [1996]6 KALR 42
• Basco Products Kenya Ltd v Machakos County Government Civil Suit No. 187 of 2015/
[2018] KLR
• Ghulam Kadir v British Overseas Engineering Corpn [1957] E.A 131
• Devshi Samat Shah v Burharam (1951) EACA 79
• Hari Singh v General Workshop (1951) 18 EACA 4
• Guggeenheim Rajguru (1953)7 ULR 55
• Omer Saleh v. Besse [1960] E.A 907
• Fida Hussein & Co. v Mohammedally & Co. (1973) E.A 1

(ii) Action for damages for non-acceptance of goods by buyer- S.61


• Hadley v. Baxendale [1845] 9 EXCH 341
• DevshiSamat Shah v B. Mohanlal 18 EACA 79
• Kassam Jivrij& Co. Ltd Gullamhussein & Co. 24 (2) KLR
• Victoria Laundry (Wiza Ltd) v. Newman Industries Ltd (1949) 2 KB 528

C. Remedies of Buyer

(i) Rejection of the goods


• Colour Print Ltd v Pre-Press Productions [2003]1 E.A 45
• Kampala General Agency v Mody’s (1963) E.A 549
• Panaswer v Popat (1968) E.A 17
• Copalds Chagan Siraj v Like Thomas Co. Ltd (1961) E.A 29
• Jiwan Singh v Rugnath Jeran (1945) 12 EACA 21
• Pan African Trading Agency v Chande Bros Ltd (1951) 19 EACA
• Mussa Hassan v Hunt (1964) E.A 201
• Norman v. Overseas Motor Transport [1959] E.A 131
• Abdullah v Fan Mohammed (1951) 18 EACA 21

(ii) Loss of the right to reject the goods


• Norman v Overseas Transport (1959) E.A 131

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


14

• N. Murji v A.C.D. Thu (1955) 22 EACA 294


• Hardy & Co. v Hillens (1923)2 K.B 49
• N.V African Handlers Ass v Kanji (1923) 9 KLR 196
• Uttamchard & Co. Ltd v F.J Hawkes & Co. Ltd (1955) E.A 197
• Rosenthal & Sons v Esmail (1965) 2 ALL.ER 860
• Popular Hardware Ltd v. Electro Craft Ltd c/5210/1976 Uganda High Court

(iii) Action for damages for non-delivery


• Wamala Growers Cooperative Union v. Attorney General [1997] III KALR 73
• Kabona Brothers Agency v Uganda Metal Products [1981] HCB 74
• Apollo Construction Ltd v Take Me Home Co. Ltd [1981] HCB 43

(iv) Action for specific performance


• Re Wait [1927] Ch. 606
• Isaac Bishari v. Vitafoam Ltd [1994] VI KALR 180
• Fiat Kenya v. Roble [1973] E.A 11
• Afro Traders & Farmers v Gailey Roberts [1983] HCB 482.

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer


15

THE LAW OF AGENCY

-Part X of the Contracts Act, 2010 (Sections 118-170)


-Ben Kiromba Twinomugisha, Principles of Law of Contract in Uganda, 2018 Kampala,
Makerere University Printery, p. 217-235
-G.H.L. Fridman, The Law of Agency 6th ed. (Butterworth, 1985).

A. Creation of an Agency
(i) Luxir (Eastbourne) Ltd v Cooper [1941] AC 108.
(ii) Springer v GW Railway (1921) 1 KB 257.
(iii)Prager v Blatspiel (1924)
(iv) Grover & Grover v Mathews (1910), 2KB 40.
(v) Bolton v Lambert (1889), Ch295.

B. Authority of an Agent (Ss. 122-124)


(i) Coffee Marketing Board v Kigezi District Growers Co-Operative Union [1995] II
KALR 21
(ii) Rama Corporation v proved Tin & General Investments Ltd (1952) 1 ALLER.
(iii)Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB
480
(iv) Attorney General v Silva (1953) AC 461.
(v) Admund Schulter & Co. (U) Ltd v Patel (1969) EA 259.
(vi) Watteau v Fenwick (1893), 1 QB 346.

C. Duties of the Agent (Ss. 129, 145, 146, 147, 148, 152)
(i) Lilley v Doubleday (1881), 7 QBD510.
(ii) Marianne Winther v Arbon Langrish & Southern Ltd [1966] EA 292.
(iii) Igben & Oke v Etwarie (1971) 1 NCLR85.
(iv) Turner v Goldsmith (1891) 1 QB544.
(v) London and Joint Stock Bank v Simmons (1892, AC 201.
(vi) Grover & Grover v Mathews (1910), 2KB401.
(vii) Bolton v Lambert (1889), Ch295.
(viii) Lilley v Doubleday (1881), 7 QBD510.

D. Rights of the Agent (Ss. 153, 154, 155, 156)


(i) London and Joint Stock Bank v Simmons (1892, AC 201.

E. Duties of the Principal (Ss. 139, 156, 158)


(i) Basma v Weeks (1950) AC441.
(ii) Schmalz v Avery (1851) 16 QB 655

Procrastination is a thief of time!!!

Kashaija Emmanuel, LLM (MUK), LLB (UCU), Dip. LP (LDC) -Lecturer

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