Contract Renewal

Greenboat Entertainment Ltd V City Council of Kampala ((HCT-00-CC-CS-0580-2003)) [2007] UGCOMMC 21 (26 February 2007);


Headnote and Holding: 

The plaintiff sought relief from the court for alleged breach of contract said to have been committed by the defendant. The alleged breach was on the basis that the defendant had renewed a contract the parties had entered into and breached the contract by awarding a tender to another bidder. 
In considering whether there was a breach of contract, the court essentially had to decide whether the contract between the parties was renewed.

The court held that the contract was not renewed, thus no breach of contract had taken place. 

The court examined the clauses of the contract that was entered into along with legislation that provides guidance regarding procurement in local government in reaching its decision. From the above instruments, the court stated that for renewal to take place, it would have to be in accordance with clause 17.1.1 of the contract and through legislation. 

Seeing that that was not the case, the court stated that there was only an oral understanding between the parties to continue working together even after the contract between them had expired. 

The suit by the plaintiff was dismissed with costs. Since there was no breach of contract, no remedies were available to the plaintiff. 

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