Banking, Finance and Insurance Law

Bank of Uganda v Banco Arabe Espanol (Civil Appeal No.1 of 2001) [2002] UGSC 3 (18 June 2002);


Search Summary: 

The respondent extended a loan to the government of Uganda where the
appellant was a guarantor. After several demands for repayment, the
respondent sued both the government and the guarantor in the high court
which entered judgment for the respondent against the guarantor as the suit
against the government was dismissed for being time barred. The appellant’s
appeal was dismissed by the Court of Appeal hence the second appeal.

Headnote and Holding: 

The court stated that the first question was whether the agreement was
governed by Ugandan or English law. The court observed that the Attorney
General as principal legal adviser of government had written an authoritative
opinion as the legality of the agreement and duly executed power of attorney
granted to the representative of the appellant.
The court also observed that under estoppels, the appellant could not deny
indebtedness when in his letter to the respondent, had acknowledged the


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