Question 2 Benko Ltd deals in importing and selling of fridges in Uganda. Drama is the company's chief salesman. His duties include receiving and selling fridges. Over the years Benko Ltd has made considerable profits. Recently, Drama got misunderstandings with some company directors. Out of anger, Drama started selling fridges at purchase price to clients who would tip him. When one of the managers asked why the company was operating at no profit, Drama responded that it was not his duty to make such an inquiry. In another development, Benko Ltd contracted Mubanda to rectify some plumbing issues in the company building. In course of doing his work, he inadvertently left one of the taps open. Water flooded and spilled to the neighbouring buildings causing considerable loss of business. The neighbour, Madoli, lost many bags of cement as a result of the flooding emanating from Benko Ltd's building. Madoli has instructed his lawyers to sue Benko Ltd for damages caused. In yet another scenario, Ndugu had offered to sell his house to Mbuto at Shs 150 million. Mbuto accepted the offer and informed Ndugu that he was going to sell his cows and pay for the house. When it was time to pay, Ndugu informed Mbuto that he (Ndugu) had revoked the offer. In another development, Magaga entered into a contact to procure a brand new Toyota Land Cruiser from Ndugu. Magaga paid Ndugu Shs 150m as the purchase price for the car. Ndugu imported the vehicle from Japan and kept it at Madarasa bonded warehouse. He informed Magaga about the arrival of the car. They went together to clear some taxes and pick the car from the warehouse. On arrival, they found that fire had gutted the warehouse the previous night and all the merchandise including Magaga's car, had been burnt to ashes. Magaga has vowed to sue Ndugu for his vehicle or refund of his money. Required:

Raise and resolve issues involved.

Question 3 Gina owns land that lies between the lands of Kono and Dyo. Due to scarcity of water during the dry seasons, Gina dug a well on his land for the use by his family and animals. Gina allowed access of Kono and Dyo's families to collect water during the dry season. A month ago, a community well was dug across the road for use by all people. Upon completion of the community well, Gina withdrew access to his well from Kono and Dyo's families. Subsequently, Gina found one of his dogs limping. On inquiry, he found out that both Kono and Dyo had continued getting water from his well. It transpired that on the day Gina's dog was injured, Kono entered Gina's land and walked towards the well to fetch water. When Gina's dog saw Kono, it started running towards him. Dyo who was standing near Gina's land watching, got a stone from Gina's land and hit the dog thereby causing the said injury. Gina furiously warned both Kono and Dyo with intention to hold them responsible for their wrong actions. In response, Kono stated that although he had walked onto Gina's land, he never did anything harmful. On the other hand, Dyo said that he did not set foot onto the land and cannot be involved in the matter. In any case, Dyo had also been complaining about the disturbance caused by Gina whenever branches from Gina's overgrown trees fell onto Dyo's land. Dyo was of the view that the falling branches from Gina's trees interfered with the enjoyment of Dyo's family on their land. Angrily, Dyo intends to sue Gina for the continued disturbance. In another scenario, Buloka who is a bus driver sold 20 boxes of apples at a border market. The apples belonged to Nendi, who normally delivers them to the bus company offices for transportation to Damisu, a neighbouring country. In Damisu, Nendi's agent called Gwoko, receives them and supplies to customers. Buloka who is one of the bus company's driver, made a decision to sell the apples when the bus got a mechanical fault at the border and they were forced to spend a day and night repairing it. When Buloka finally got in touch with Nendi, he handed over the money from apple sales and also requested for a commission. However, Nendi ignored Buloka, saying that he had no agency relationship with him. At the same time, Gwoko got several demands for refund of money by customers in Damisu who never got apples they had paid for. Gwoko has in turn, directed Damisu customers to Nendi for payment.

Required: Raise the issues and resolve them.

Question 4 Odoma trades in motor vehicles. Recently, he met Kamada at a wedding function. On seeing his business card, he expressed interest in purchasing a car. Odoma assured him that he had a variety of cars from which he could purchase a car of his choice. Kamada went to his (Odoma's) showroom but did not get the car he wanted, Mercedes Benz 2010 model. Odoma convinced Kamada to buy another vehicle and told him that it was better than the Mercedes Benz 2010. Kamada therefore decided to take the car at a cost of Shs 80 million. However, when Kamada took the car, it turned out to be in bad mechanical condition and could not even reach his home. Kamada was furious with Odoma for selling him a car in such a state and rejected it. He informed him (Odoma) that he did not agree to buy a car in such a condition. However, Odoma contends that they had concluded the agreement and there was a valid contract. In another development, Odama offered to sell a car to Muzuri. Muzuri was excited about the car, Toyota Hilux 2017 model and decided to post his acceptance of the offer to Odoma's known address. He even called Odoma and informed him that he had posted his acceptance. On the following day, Odoma sold the very car to another customer. When Muzuri came for the car he found that, it had already been sold by Odoma. Muzuri is confused because Odoma says that acceptance by post was not acceptance. In another situation, Tendo and Faku are related as principal and agent respectively. Tendo supplies Faku with motor cycles for sale, for and on his behalf. Tendo has been receiving money from Faku after sale of motor cycles, but does not give any commission to Faku. In subsequent dealings, Faku decided to retain some of the motor cycles as he kept demanding for payment of his commission from Tendo in vain. Tendo has not bothered to pay Faku but he is threatening to sue Faku for retaining some motor cycles. In a related event, Tendo has decided to recruit Todoba aged 17 as his agent in another town. He has agreed with Todoba that he will be supplying him with motorcycles for sale on his behalf and in the long run, he would replace Faku, who had proved to be bigheaded.

Required: Raise and resolve the issues involved.

Question 5 (a) Explain the different sources of law in Uganda. (b) Explain reasons for delegated legislation. Question 6 (12 marks) (8 marks) (Total 20 marks) (a) Differentiate between a contract of service and contract for services. (8 marks) (b) Outline the permitted deductions from the remuneration of an employee. (8 marks) (c) Outline instances where termination of a contract is deemed to take place.