Non-Performing Assets Recovery Trust v S.r Nkabula & Sons Ltd ((Supreme Court Civil Appeal No. 34 of 2005)) [2007] UGSC 23 (18 October 2007);


Search Summary: 

This appeal arises from the decision of the high
court. The background is that the respondent
acquired a tractor from the appellant on loan
but later refused to pay full loan money on the
grounds of defects and inducement coupled
with negligence and other factors. At appeal it
was held that the respondent was induced and
awarded the damages hence this appeal. There
was also a cross appeal. The appeal is on the
ground of how crucial the preference of a
Mersey Fergusson was, the issue of

inducement, design defects, general damages
and the cross appeal was on the ground of non-
consideration to conclude fraudulent
misrepresentation, not discharging the
respondent from the contract, failure to
mitigate the losses.

Headnote and Holding: 

The court held that that the respondent’s
preference for a Massey Ferguson tractor was
among the issue framed for consideration by
the trial judge before trial. That the respondent
indicated clearly
that he did not rely on the misrepresentations
of the officials of Uganda Development Bank,
if any, but on his own independent careful
investigations concerning the technical
reliability of the Steyr tractor. His claim for
relief based on misrepresentation therefore
cannot succeed.
That that the Steyr tractors were imported into
the country without rectifying the
recommended design defects. 


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