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Makerere Loses Shs 300m Graduation Gown Court Battle
Kampala, Uganda: Makerere University has been found liable for breaching a contract with Team Uniform Limited, the official supplier of graduation gowns, in a long-standing legal dispute over unpaid dues and unauthorized competition.
In a ruling delivered by the Uganda Commercial Court, the court held that Makerere University failed to uphold its contractual obligations by allowing unauthorized suppliers to sell counterfeit gowns and failing to pay for all the gowns supplied by Team Uniform Limited for the 69th and 70th graduation ceremonies.
While delivering the judgment, the presiding judge stated: “The Defendant [Makerere University] was contractually obligated to ensure the exclusivity of the Plaintiff [Team Uniform Limited] in supplying graduation gowns. By allowing unauthorized suppliers to sell counterfeit gowns, the Defendant failed in its duty and, therefore, breached the contract.”
The dispute arose from a three-year contract awarded to Team Uniform Limited to supply customized graduation gowns for Makerere University graduands.
The company alleged that the university violated its exclusive rights by permitting unauthorized vendors to flood the market with counterfeit gowns, resulting in financial losses.
Makerere University, in its defense, acknowledged the existence of the contract but argued that Team Uniform Limited failed to deliver the full quantity of gowns as required and did not provide adequate proof of delivery for all supplied gowns.
Outstanding payment
Additionally, the court found that Makerere University had not fully paid for the gowns delivered, ruling that: “The Plaintiff provided sufficient proof of supply for which payment is outstanding. The Defendant’s failure to honor these payments constitutes a breach, warranting compensation.”
As a result, the court awarded Team Uniform Limited Shs 313,029,420 for unpaid gown supplies, Shs 30,000,000 in general damages, and interest at 19% per annum from February 17, 2020, until payment in full.
The company was also granted costs of the suit. However, claims for lost legitimate expected income and special damages were dismissed due to insufficient proof. The judge emphasized:
“The claim for lost legitimate expected income remains speculative and is not supported by the necessary evidential standard required by law.”
The ruling sets a significant legal precedent for contract enforcement in Uganda. It highlights the responsibility of institutions to uphold exclusivity clauses in contracts and enforce compliance against unauthorized market players.
Source. Chimp Reports