Access Financial Services PLC Ltd V Khayongo Patricia Rutiba (HCT - 00 - CC - CS - 0061 - 2007) ((HCT - 00 - CC - CS - 0061 - 2007)) [2009] UGCOMMC 42 (23 September 2009);


Headnote and Holding: 

The plaintiff entered into a loan agreement with the respondent. The plaintiff averred that the defendant had neglected and failed to pay the stipulated monthly installments and was therefore in breach of the loan agreement. The defendant however denied the claim and averred that she has never applied for any loan from the plaintiff but contended that her former employer and its directors applied for staff loans from the plaintiff.

The agreed issues however were whether there was a valid loan agreement between the parties; whether the second to fifth counter defendants were parties to the loan agreement; whether the first to fifth counter defendants jointly and severally misrepresented the contents and effect of the loan agreement and whether there is liability to pay the debt claimed by the plaintiff and what remedies are available to the parties.

The court found that there was a debt to be paid since the plaintiff and the defendant entered into a contract which is binding on both parties; the defendant was liable to pay the debt. Since the defendant signed the loan agreement personally with the plaintiff, she was to pay the money she owed them. However, since the second, third, fourth and fifth counter defendants misrepresented to the defendant the terms and contents of the loan agreement they were found liable in this respect and ordered to pay the defendant the equivalent of the principal sum which the defendant owed to the plaintiff. 


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