MAKERERE UNIVERSITY

SCHOOL OF LAW

DEPARTMENT OF COMMERCIAL LAW

LAW 1109: LAW OF CONTRACT I

FIRST SEMESTER

READING LIST

Instructors: Dr. Benson Tusasirwe & Prof. DJ Bakibinga

Course Outline

Historical development, nature, scope and sources of the law of contract; formation of
contract: offer and acceptance; consideration; privity of contract; promissory estoppel;
intention to create legal relations; capacity to contract; contents of the contract.

Aim and Outcomes

The aim of the course is to introduce students to the history, nature, scope and content of
the law of contract. Building on statutory and case law, the course will cover how the
contract is formed and the terms that the parties to the contract may agree to. The course
will provide a foundation for Law of Contract II in the second semester and commercial
law courses in subsequent years. At the end of the course, students are expected to:
(a) Demonstrate an understanding of how the law of contract developed;
(b) Demonstrate an understanding of how the law has been applied in courts in
practice;
(c) Explain the essential elements of a valid contract; and
(d) Demonstrate an appreciation of the contents of a valid contract.

Methods

The course will be conducted through the lecture method, guided

Assessment

Students will do a take home course work (30%). The course work question (s) shall be
given to the students at least one week in advance. The final examination shall be
CLOSED BOOK and marked out of 70%. Both the course work and he final examination
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shall be governed by the University/School regulations, which every student should study.

General References

Legislation
Constitution of the Republic of Uganda, 1995 (as amended).
Contracts Act, Cap. 284
Companies Act, Cap. 106
Judicature Act, Cap. 16
The Civil Procedure & Limitation (Misc. Provisions) Act, Cap. 283
Electronic Signatures Act, Cap. 98
Electronic Transactions Act, Cap. 99
Employment Act, Cap. 226
Illiterates Protection Act, Cap. 288
Land Act, Cap. 236
Lotteries and Gaming Act, Cap. 334
Motor Vehicle Insurance (Third Party Risks) Act, Cap. 193
Sale of Goods and Supply of Services Act, Cap. 292
Tier 4 Microfinance Institutions and Money Lenders Act, Cap. 61

Books

Twinomugisha, B. K, IEL Contracts – Uganda (Wolter Kluwer International Law, 2020)

Twinomugisha, B. K, Principles of Law of Contract in Uganda (Makerere University,

2018).

Furmston, M. P; Cheshire, Fifoot and Furmston’s Law of Contract 17th ed. (Oxford University,
2017)

Atiyah, P. S, The Rise and Fall of Freedom of Contract (OxfordUniversity1979)

,Atiyah, P. S, An Introduction to the Law of Contract (Oxford University, 1995)

Treitel, G. H, The Law of Contract (Sweet & Maxwell, 1999)

Richards, P, Law of Contract (Pearson Education Limited, 2002)

Hodgin, R. W, Law of Contract in East Africa (Kenya Literature Bureau, 1997)

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Bakibinga D. J, Law of Contract in Uganda (Allahabad:The Written Word Publications,

2nd ed. 2013)

Nditi, N. N. N, General Principles of Contract Law in East Africa (Dar es Salaam

Engels, F, Origin of the Family, Private Property and the State (C. H. Kerr & Company,

2009)

Nabudere, D. W, Imperialism and Revolution in Uganda (Onyx Press, 1980)

Marx, K, Capital: A Critique of Political Economy Vol.1 (Create Space Independent Publishing
Platform, 2010)

Smith, A, Wealth of Nations (Bantam Classics, 2002)

Major, W. T. Case book on Contract Law (Pitman Publishing, 1990)

Burrows, A, Offer and Acceptance: A Case book on Contract 2nd Ed. (Hart Publishing, 2009)

Topic I: History, Nature, Scope and Sources of the Law of Contract

Twinomugisha, B. K op cit, pp.1-16

Furmston, M, Cheshire, op cit, pp.1-17

Bakibinga, D. J. op cit, pp.1-6

Topic II: Formation of a Contract

(a) Formalities of a Contract

Contracts Act, sec.9

Sale of Goods and Supply of Services Act, sec.5

Twinomugisha, B. K op. cit, pp.6-12

Greenboat Entertainment Ltd v. City Council of Kampala, HCCS No.580 of 2003; [2007]1 ULR 554

John Kagwa v. Kolin Insaat Turizm & Others HCT-00-CC-0318

Kaziro Lwandasa v. Kyas Global Trading Co. Ltd, HCMA No.865 of 2014

Credit Finance Corporation Ltd v. Ali Mwak Asanga [1959] EA 79

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Ngege (U) Ltd v. SDV Transami (U) Ltd, HCCS No.579 of 2003; [2008] ULR 578

(b) Offer

Twinomugisha, B. K op cit, pp.17-31

Contracts Act, secs. 1, 2, 3, 4, 5.

Sale of Goods and Supply of Services Act, 2017, sec.70

Carlill v. Carbolic Smoke Ball Co. [1892]2 QB 484

Jean Francois Diva v. Habitat, HCCS No.823 of 1993

Flomera Nalongo v. Luwero Town Council, HCCS No.303 of 1993; [1995] IV KALR 24

Harris v. Nickerson (1873) LR 8 QB 286

Kibona Enterprises v. Departed Asians Property Custodian Board & Another, HCCS No.663 of
1996

Fisher v. Bell [1961] 1 QB 394

Pharmaceutical Society of Great Britain v. Boots Cash Chemists (Southern) Ltd [1952] 2 All ER
459

McManus v. Fortescue [1907] 2 KB 1

Spencer v. Harding (1870) LR 5 CP 561

Thornton v. Shoe Lane Parking Ltd [1971]1 All ER 686

Chapelton v. Barry UDC [1940]1 KB 532

Wilkie v. London Passenger Transport Board [1947] 1 All ER 258

Mendelssohn v. Normand Ltd [1970]1 QB 177

Taylor v. Laird (1856)1 H & N 266

Routledge v. Grant (1828)4 Bing 653

Byrne v. Tienhoven (1880)5 CPD 344

Dicknson v. Dodds (1876)2 Ch.D 463

Financings Ltd v. Stimson [1962]3 All ER 386

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Hyde v. Wrench (1840)3 Bear 334

Steven Byaruhanga v. Mbarara Municipal Council [1995] IV KALR 62

Khaled and Others v. Athanas Brs (Aden) Limited [1968] EA 31

(c) Acceptance

Contracts Act, sections 2, 3, 4, 6 and 7; Electronic Transactions Act, sections 2, 4, 5 and 14;
Electronic Signatures Act, 2010, sections 3 and 4.

Twinomugisha, B. K, op cit, pp. 31-40

Taylor v. Allen [1966]1 QB 304

Holwell Securities Ltd v. Hughes [1974]1 WLR 155

Powell v. Lee (1908) 99 LT 284

Felthouse v. Bindley (1862) 11 CB (NS) 869

Allied Marine Transport Ltd v. Vale Do Rio Doce, The Leonidas [1985]2 All ER 796

Henthorn v. Fraser [1892] 2 Ch 27

Household Fire and Carriage Accident Insurance Co. v. Grant (1879)4 Ex D 216

Tinn v. Hoffman & Co. (1873)29 LT 271

Entores v. Miles Far East Corporation [1955] 2 QB 327

Dian GF International Ltd v. Damco Logistics Uganda Ltd, HCCS No.161 of 2010

Tecno Telcom Ltd v. Kigalo Investments Ltd (2013)2 EA 376

Golden Ocean Group Ltd v. Salgaocar Mining Industries & Another [2011] EWHC 56

Forcelli v. Gelco Corp 2013 NY Slip OP 05 437 [109 AD 3d 244]

Topic III: Consideration, Privity and Promissory Estoppel

Contracts Act, sections 2, 19(1), 20(1)(b), 65, 118, and 122(I)

Twinomugisha, B, K, op cit, pp.41-59

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Currie v. Misa (1875) L. R. 10 Ex. 153

Roscorla v. Thomas (1842)3 QB 234

Mc Ardle [1951] Ch 669

Re Casey’s Patents [1892]1 Ch. 104

Pao On v. Lau Yiu Long [1975]3 All ER 65

Lampleigh v. Brathwait (1615) Hob 105

Price v. Easton (1833)4 B & Ad. 433

Tweddle v. Atkinson (1861)1 B $ S 393

Dunlop Pneumatic Tyre Co Ltd v. Selfridge [1915] AC 847

Vincent Karuhanga v. NIC & Another, HCCS No. 617 of 2002, [2008] ULR 660

Tarlok Singh v. Sterling General Insurance Co. Ltd [1966] EA 144 Vandepitte v.

Preferred Accident Insurance Corporation of New York [1933] AC 70

Kayanja v. New India Assurance Company Ltd [1968] EA 295

Donoghue v. Stevenson [1932]1 AC 562

Boney Katatumba & 3 Others v. Shumuk Springs Development Ltd & 3 Others, HCCS No.126 of
2009

Al-Jah Noman Mohamed Qadasi v. Goonem Ahmend Qadasi [1963] EA 142

Collins v. Godfrey (1831)1 B & Ad 950

Glassbrook Brothers v. Glamorgan County Council [1925] AC 270

Harris v. Sheffield United Football Club Ltd [1987] 2 All ER 838

Stilk v. Myrick (1809) 2 Camp 317

Hartley v. Ponsonby (1857)7 E & B 872

North Ocean Shipping Co. Ltd v. Hyundai Construction Co. Ltd [1979] QB 705

Williams v. Proffey Bros Ltd [1990]1 All ER 512

Shaldwell v. Shaldwell (1860)9 CBNS 159

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Pinnel’s case (1602) 5 Co. Rep 117a

Foakes v. Beer (1884)9 App. Cas 605

Central London Property Trust Ltd v. High Trees House Ltd [1947] KB 130

D & C Builders Ltd v. Rees [1966]2 QB 617

Hughes v. Metropolitans Rail Co (1877)2 App Cas 439

Century Automobiles Ltd v. Hutching Biemar Ltd [1965] EA 304

Nurdin Bandali v. Lambak Tanganyika Ltd [1963] EA 304

Ajai v. R. T. Briscoe Nigeria Ltd [1964] EA 566

Combe v. Combe [1951]2 KB 215

Akkermans Industrial Engineering v. Attorney General [2009] EA 13

Pan African Insurance Co. (U) Ltd v. International Air Transport Association HCT-00-CC-MA
086-2006

Topic IV: Intention to Create Legal Relations

Twinomugisha, B. K. op cit, pp.61-68

Brooker v. Palmer [1942] 2 All ER 674

Pal Agencies (U) Ltd v. Soroti Municipal Council and Another, HCCS No.351 of 2009

Begumisa Enterprises Ltd v. Maersk, HCCS No.83 of 2008

Merritt v. Merritt [1970] 2 All ER 760

Pettitt v. Pettitt [1970] AC 777

Jones v. Padavatton [1969]1 WLR 328

Jones v. Vermon’s Pools Ltd [1938]2 All ER 626

Rose and Frank Co. v. J. R. Crompton and Bros [1923] 2 KB 261

Edwards v. Skyways Ltd [1964]11 All ER 494

Topic V: Capacity to Contract

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Constitution of the Republic of Uganda, article 34; Contracts Act, sections 11, 12, 57 and 58;
Sale of Goods and Supply of Services Act, sections 4 and 32, Employment Act, sections 2 and
32; Companies Act, sections 50, 51, 52, 53 and 54.

Nash v. Inman [1908]2 KB 1

Ryder v. Wombwell (1868) LR 4 Exch 32

Roberts v. Gray [1913] 1 KB 520

Fawcett v. Smethurst [1914]84 LJKB 473

Abram Steamship v. Westville Steamship Co. [1923] AC 773

Ashburry Railway Carriage Co. v. Riche (1875) LR 7 HL 653

Kelner v. Baxter (1866)2 LR 2 CP 174

Newborne v. Sensolid (1954)1 QB 45

Topic VI: Contents of the Contract

Contracts Act, section 9, 67; Evidence Act, section 100; Sale of Goods and Supply of Services
Act, sections 1, 12, 13, 14, 15, 16, 17, 18, 19 and 67; Evidence Act, section 100.

Twinomugisha, B. K, op cit, pp.83-114

Jacobs v. Batavia and General Plantation [1924] 1 Ch 287

Cheleta Coffee Plantations Ltd v. Mechlsen [1966] EA 203

Gillespie Bros & Co. v. Cheney, Eggas & Co. [1896] 2 QB 59

Marie Ayoub & Others v. Standard Bank of South Africa & Another [1961] EA 743

In the Estate of Shamji Visram & Another v. shankerprasad Bhatt [1965] EA 789

[1962] EA 376

Routledge v. Gailey and Roberts (Tanganyika) Ltd v. Salum Mckay [1954] 1 All ER 855

Banerman v. White (1861) 10 CBNS 844

Birch Paramount Estates Ltd [1956]16 EQ 396

Dick Bentley Productions Ltd v. Harold Smith (Motors) Ltd [1965] 2 All ER 65

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Oscar Chess Ltd v. Williams [1957] 1 WLR 370

Heibut & Co. v. Buckleton [1913] AC 30

Sarah Kawino v. Rutaisire [1994] VI KALR 132

Liverpool City Council v. Irwin [1976] 2 All ER 39

Parker v. Palmer (1821) 4 B & Ald 387

Gardiner v. Gray (1815) 4 Camp 144

Butterworths v. Kingsway Motors [1954] 1 WLR 1286

Rowland v. Duvall [1923] KB 500

Ali Kassam Vivain Ltd. v. The United Africa Co. (Tanganyika Ltd) [1958] EA 204

Lakhamishi Brosh. Ltd v. R. Raja & Sons 1966 (1) ALR Comm 245

Niblett Confectioners’ Materials Ltd [1921] 3 KB 387

Varley v. Whipp [1900] 1 QB 513

Grant v. Australian Knitting Mills Ltd. [1936] AC 85

Re Moore and Landauer [1921] 2 KB 519

Arcos Ltd v. EA Ronaasess & Son [1933] AC 470

Harlington & Leinster Enterprises Ltd v. Christopher Hull Fine Art Ltd [1990] 1 All ER 737
Burongo Construction Co. v. Attorney General HCT-00-CC-CS-0253-2004
Nurmohamed Nurjii & Others v. Hussenali Gulamhussein Oattu 22 EACA 294

Godley v. Perry [1960]1 WLR 9

Goustar Enterprises Ltd v. John Kakas Oumo SCCA No.8 of 2003

Rogers v. Parish (Scarborough) Ltd [1987]2 All ER 232

Doola Singh & Sons v. The Uganda Foundry & Machinery Works 12 EACA 33

Iron Steel Wares Ltd v. C. W. Matyr & Co. [1952-1957] ULR 146

Mugenyi v. Ssekubwa [2008]2 EA 247

Jafferali Abdulla v. Janmohammed’s Ltd 18 EACA 21

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Karsales (Harrow) Ltd v. Wallis [1956] 2 All ER 866

Stella Twinebirungi v. Akamba Public Service Ltd, HCCS No.24 of 2004

Suisse Atlantique v. Rotterdamsche [1966]2 All ER 61

Photo production Ltd v. Securicor Transport Ltd [1980] AC 827

SDV Transami (U) Ltd v. Nsibambi Enterprises, CACA No.56 of 2006; [2008] ULR 497

Gentex Enterprises Ltd v. Security Group (Uganda) Ltd, HCCS No.45 of 2007

Levision & Another v. Patent Steam Carpet [1977] 3 WLR 90.

East African Road Services Limited v. J. S. Davis and Co. Ltd [1969] EA 259

Schluter & Co. Ltd v. Railway Corporation and Others [1975] EA 157

Mitchell (Chestehall) Ltd v. Finney Lock Seeds Ltd [1982] EWCA Civ. 5; [1983] 2 AC 803

Mendelssohn v. Normand Ltd [1970] 1 QB 177

Curtis v. Chemical and Dyeing Co. Ltd [1951] 1 KB 805

Chapelton v. Barry UDC [1940] KB 532

Parker v. South Eastern Railway Co. (1877)2 CPD 416

Thornton v. Shoe Lane Parking Ltd [1971] QB 163

Spurling v. Bradshaw [1956] 2 All ER 121

Thompson v. LM & S. Railway Co. [1930]1 KB 141

Olley Marlborough Court Ltd [1949]1 KB 532

Lewis Ralph Dodd v. Chamdrakant Nandha [1971] EA 58

Hollier v. Rambler Motors (AMC) Ltd [1972] QB 71

The Containers Ltd v. Kencon [1971] EA 216

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