Rationality

Arua Kubala Park Operators and Market Vendors Cooperative Society Limited (MISCELLANEOUS CAUSE No. 0003 OF 2016) [2018] UGHCCD 6 (9 January 2018);

Flynote: 

Search Summary: 

The respondent invited bids from potential service providers for the collection of revenue from Arua Main Market. The applicant was the successful bidder and eventually executed a contract with the respondent on 06 July 2015. The applicants rendered their services under that contract until 27 November 2015 when they received a letter from the respondent's Town Clerk terminating the contract for alleged breach by among other reasons, failing or defaulting to remit funds collected in the sums agreed upon under that contract.The respondent stipulated that the matter be referred to arbitration in accordance with clause 13 of the agreement.

Headnote and Holding: 

In the instant case, the court held that it is only fair that the applicant should be confined to its contractual (private law) remedies, whatever they may be. That if it cannot show any breach of contract by the respondent in such proceedings, that should be the end of the matter.

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