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Songambere Ltd carries out business of fish sales. The business has been progressing well for a number of year however, recently the company started experiencing

Songambere Ltd carries out business of fish sales. The business has been progressing well for a number of year however, recently the company started experiencing some challenges. At one occasion, a company vehicle overturned and the fish fell onto the property of Gambo. Some passersby looted most of the fish but a mound of broken pieces of fish remained on Gambo's land. After 3 days, a strong stench filled the air. Despite Gambo's demand that Songambere Ltd removes the fish, the company has ignored him. Gambo has now decided to sue the company in the Court of Appeal for what he believes was a crime committed against him and his family. He has approached you for guidance on the matter, including the procedure he can use for the best results. In one of its business deals, Songambere Ltd had hired Tikka Ltd to deliver fish by boat to a fish market. Ordinarily, such a delivery takes 2 hours. Tikka Ltd was aware of the Wednesday fish market that the fish had to be there by 4:00 p.m. However, Tikka company boat set off at 5:00 p.m. when all potential good customers had gone. Songambere Ltd lost profits of Shs 4 million as result of selling off the fish at very low prices. It later on emerged that Tikka Ltd's boat had made a detour for its company business before delivering the fish. As fate would have, strong winds forced the boat to anchor and wait as the waves toned down, before delivering the fish. Tikka Ltd insists that what happened was an act of God, where the strong winds prevented timely delivery of the fish. Songambere Ltd is convinced that Tikka Ltd did not fulfill its duty, so it is seeking for your advice. In yet another scenario, on one Monday morning, Birebe approached Songambere Ltd which had offered to sell old containers used in the fish business. Birebe was told to write letter of acceptance to the management of the company. Birebe wrote the letter the next day, and immediately posted it to the company. When Songambere Ltd did not get any communication from Birebe after two days, it sold the containers to another person on Wednesday afternoon. However, Birebe arrived at the company offices on Thursday morning to receive the containers, but was informed that it was too late for him to purchase them. Birebe is not convinced with the company's response and insists on pursuing the matter.

Required:

i)Identify the relevant issues and resolve them. (25 marks)

Question 2 Twenty years ago, Singh, a German national arrived in Uganda in search of greener pastures. He is an expert in electronic technology. 10 years after expiry of his contract, he decided to remain in Uganda. He now knows the Luganda language and has been given the name, 'Kiwanuka'. Recently, he bought a freehold titled land in Busiro from Machati but he is facing challenges. Upon presentation of a duly signed transfer forms and receipts of payment of relevant fees for registration, he was informed that he was legally barred from purchasing the land, given the nature of its tenure. Machati who had sold the land to him, learnt about the challenges faced by Singh. He thereafter sold the same land and executed a transfer to Ntono a Ugandan member of parliament. Subsequent to the transfer of the land into her name, Ntono faced resistance from tenants who were occupying the land at the time Machati bought it from the Land Authority (LA). The conditional page for the land title read as follows: (a) Use restricted to residential. (b) Tenants, if any, to be compensated. It transpired that while Machati was driving his Prado TX, he received a call from Ntono to solve the problem of tenants or else he faces jail on top of refunding the money advanced. In a panic, the car which he was driving with one hand swayed and knocked Zuni, who was walking along the road as a pedestrian. Zuni sustained injuries on both legs. In the meantime, Ntono is also facing another challenge. Pastor Bata recently established a wooden-built church next to her home. Bata's followers pray at the top of their voices using strong loudspeakers from 7.00 pm until morning. As a result of the noise from the church, Ntono's performance in Parliament has been affected. Most of the time, she dozes and does not contribute to discussions. She now wants to sue Pastor Bata's church.

Required:

i)Raise and resolve all the issues arising from the facts. (25 marks)

Question 3 Bakanto, a businessman in Mbale, employed his friend, Oga, to purchase for him bicycles. They were to be supplied to one of the newly created district local government not later than 15 February, 2018. He knew Oga as an honest, good negotiator and shrewd businessman. Moses Matu, the Local Council V Chairman, of the newly created district who does his programmes on time, wanted to deliver the bicycles to Local Council I (LC I) Chairmen as scheduled.Oga purchased the bicycles from Shah in Nairobi, Kenya at a reasonable price on behalf of Bakanto. He made an advance payment and loaded the bicycles on a train to Kampala. The train arrived late and the bicycles reached the district headquarters on 20 February 2018. By the time of delivery, the district local government had cancelled the order, due to the delay. Consequently, Bakanto refused to receive the bicycles, arguing that Oga was responsible for the delay which resulted into cancellation of the order. Bakanto immediately revoked the agency, disregarding the fact that Shah is demanding for his money from Oga. Oga is confused and needs advice. In another development, Amandi owns a wholesale shop on Adumi Avenue in Arua municipality. He sells bitenge clothes, second-hand clothes and generators, all imported from the Democratic Republic of Congo. His friend, Mbode, a businessman in Kampala and a customer for over 10 years, recently ordered for 200 bales of second-hand clothes at a total cost of Shs 200 million. He paid an installment of Shs 50 million, and the balance was to be paid at the time of delivery. Mbode received the 200 bales of clothes and loaded them on a truck. As he was about to set off, it was reported on various radio stations that the High Court in Kampala had declared Mbode insolvent. Amandi stopped movement of the truck and returned the goods into his possession. He informed Mbode that the goods would be resold if the balance due was not paid within a week's time. Amandi sold the goods after ten days had elapsed. Mbode's trustee in bankruptcy is now ready to pay the balance and is demanding for the goods from Amandi.

Required:

i)Identify and resolve issues. (25 marks)

Question 4 Mpozi Ltd was incorporated in 2017 with the help of Lwana. Lwana assisted in preparing documents, securing capital and directors for the company. Among other things, Lwana had borrowed money from Kapo, on the understanding that when the company stabilises, all the money would be paid. On incorporation of the company, Lwana informed the directors about the money he had borrowed and they adopted the debt, on behalf of the company. Meanwhile, it transpired that the company had overspent in preparation to commence business. Therefore, no money has been paid to Kapo to-date. Lwana has now presented a demand note from Kapo but the directors are skeptical about payments, which they view as pre-incorporation concerns of Lwana. Mpozi Ltd recently held a general meeting in which the shareholders got concerned about the way directors conducted business. In the meeting, Fudu a member, sent a representative who was not a member of the company, but was given authority by Fudu to handle matters on his behalf. Fudu later learnt that his representative was denied an opportunity to make contributions to the discussion on his behalf. According to the chairman of the meeting, non- members are not permitted to deliberate on company matters. Other concerns in the company were about employment issues. Zaidi who had worked for the company since incorporation, had been redundant for 3 months. He had learnt that this was a deliberate strategy used by the directors so that they would report a need to lay off some employees. However, the department where Zaidi is deployed is overloaded with work. When he complained about his situation, Zaidi was told that he has no room for complaint. Prior to Zaidi's ordeal, Meno had received a dismissal letter on grounds that as a store manager, he had not handled his work well. According to Meno, the letter referred to an instance where some missing items from the store had, in fact, been used by the directors in their meeting. Apart from that incident, there had been no loss or mishandling of work in the stores at any time in the last 14 months. Lwana, Kapo, Fudu and Mpozi Ltd employees want advice concerning their situations.

Required:

i)Raise all relevant issues and resolve them. (25 marks)

Question 5 Tabora is a business man in Kono town. His son Rapo, who is 15 years old, is a day scholar, studying in Kono Town College. Rapo rides his bicycle to school every day. One day, he parked the bicycle by the road side, from where a speeding hit and run motor vehicle knocked it beyond repair. At that time, Tabora was on a business tour to China, where he spent two months. Rapo was writing his S.4 exams and badly needed transport. He bought a sports bicycle on credit from Fula, who knew him and his father very well. Rapo pledged that his father would pay the Shs 200,000 they agreed upon. When Tabora came back, he declined to pay for the bicycle arguing that: (i) Rapo was below 18 years and as such, he was not in position to contract. (ii) The price for the bicycle was not adequately matching the market price. Fula took the matter to the High Court (Commercial Division) and all pleadings were filed. A year has passed without any action taken by court. When Fula visited court to find out the progress, he was referred to a police commander, for Alternative Dispute Resolution (ADR) by Malewa, who claimed to be a court clerk.

Required:

i)Raise and resolve all issues arising from the facts.

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