Lawpoint Uganda

The court emphaised that constructive notice arises only upon proper registration. A registered caveat or instrument gives constructive notice to the world, whether or not a purchaser has actual knowledge. This principle is central in determining the duty of disclosure: if a claim is not yet registered, it may not constitute an encumbrance binding on the seller

The Court found that, under Section 46(1) Contracts Act, where time is of the essence and a party fails to perform, the contract becomes voidable at the option of the promisee. Equity will not order specific performance where the claimant is the party in breach (see Nipuni Bhatia v Boutique Shazim Ltd [2015]).

The Court clarified that while banks must reverse erroneous credits within a reasonable time, even long delays do not oblige payment if no funds ever existed.

The Court distinguished the decisions in Woodmore Energy Consultancy Ltd & 3 Ors v Guaranty Trust Bank (U) Ltd and Haruna Sentongo v I&M Bank (U) Ltd, clarifying that these cases concern interim stay of execution applications in appellate courts. These rulings are isolated and contextual and do not alter the established jurisprudence on the application of Regulation 13 to injunctions granted by trial courts. The appellate court must apply a different approach when dealing wit

The Court emphasised that once a contract is valid, it creates reciprocal rights and obligations between the parties to it. I think it is the law that when a document containing contractual terms is signed, then in absence of fraud or misrepresentation the party signing it is bound by its terms. — quoting William Kasozi v DFCU Bank Ltd, HCCS No. 1326 of 2000.

The Court affirmed that “A mortgage under Section 116 of the Registration of Titles Act is void ab initio where the mortgagor did not have registered title at the time of execution.”

The Court referenced a 2020 Bank of Uganda statement, confirming that foreign lenders not accepting deposits from the Ugandan public are not regulated under the FIA. These foreign lenders operate under the laws of their home countries and international contractual principles—not the Ugandan FIA. Therefore, the Court held that there is no law in Uganda forbidding persons from borrowing from entities or institutions outside Uganda, and that such a restriction would be unreasona

The High Court affirmed that Once shareholders of a company pass away, it is reasonable for the court to allow the surviving member and/or officer to conduct the affairs of the company as they deem fit to further the company’s objectives

Lending institutions must ensure that a company resolution is in place before accepting company property as loan security. In its absence, such transactions risk being invalidated for lack of proper authorization under company law. Moreover, The court reaffirmed the duty of banks and financial institutions to conduct thorough due diligence, especially when accepting corporate property as collateral. Failure to verify corporate approvals or the identity of borrowers may lead t

The High Court found that the loan agreement for UGX 2,550,000/= (dated 17th September 2019) lacked the signatures of both the lender and a third-party witness, contravening Section 84(1) of the Tier 4 Microfinance Institutions and Money Lenders Act.

The court found that the sale was not fraudulent nor conducted without valuation, but the transfer was illegal, and the sale was conducted in breach of the guarantee contract due to failure to notify the Plaintiff.

A guarantee establishes a tripartite legal relationship involving the creditor, the principal debtor, and the guarantor. Under this arrangement, the guarantor undertakes a secondary obligation to satisfy the debt or obligation if the principal debtor defaults. This secondary liability only becomes enforceable upon the failure of the principal debtor to fulfil their primary obligation.

The Supreme Court’s decision in Haruna Sentongo v I & M Bank (U) Limited brings a shift in the interpretation of Regulation 13 of the Mortgage Regulations 2012. While the Constitutional Court previously upheld the provision as constitutionally sound in Ferdsult Engineering Services Ltd v Attorney General, the Supreme Court has now injected a necessary nuance, emphasizing that rigid application of the 30% repayment requirement must not obstruct access to justice or undermine t

Statutory bodies such as UCC must act strictly within their enabling legislation—powers to award monetary compensation must be clearly conferred.

Financial transfers within a romantic or cohabiting relationship are not automatically recoverable unless supported by evidence of contractu

Courts are inclined to maintain the balance between preserving the appellant’s right of appeal and protecting the respondent’s entitlement t

When a person takes goods or services from another person on credit, it is imperative to keep the communication channels open.

The Court of Appeal has reinforced the principle that borrowers cannot evade financial obligations through corporate misrepresentation

The value of the subject matter should be determined from pleadings, judgment, or settlement, but where not ascertainable, discretion must b

No other evaluation criteria other than that stated in the bidding document can be considered by the evaluation committee during the evaluat

Under Section 33(1)(a) of the Companies Act, a contract is validly executed if signed by an authorized company representative.

Procuring entities must ensure that any disqualification or adverse action against a bidder is based on proper investigations and justifiabl

Once a loan offer is accepted by the borrower and communicated to the lender, it becomes legally binding. The lender cannot unilaterally

Tax Appeals Tribunal cannot refer disputes before it for arbitration even if the parties had an already existing agreement that permits it