Termination of Contract

Doreen Rugundu v International Law Institute ((Civil Appeal No 8 of 2005)) [2006] UGSC 18 (3 October 2006);

Flynote: 

Search Summary: 

This is a second appeal. It arises from the
decision of the Court of Appeal which
overturned the judgment of the trial Judge who
had allowed a suit instituted by the appellant
claiming damages for breach of contract and
awarded her a sum of Shs. 10 million as
damages for the breach with interest of 10%
p.a., from the date of judgment till payment in
full and costs of the suit. The background of
the appeal is that the appellant was interviewed
and offered a job before she was told that her
services were no longer needed. She filed in
the high court successfully and the respondent

filed successfully in the court of appeal and the
respondent being dissatisfied with the decision
filed this appeal on the grounds that The
learned Justices of Appeal erred in law and fact
when they held that the appellant had no
accrued rights in the employment contract
simply because she had not commenced work
under the employment contract and The
learned Justices of Appeal erred in law and fact
when they held that the appellant had suffered
loss or damage, which ought to attract an
award of damage."

Headnote and Holding: 

The court held that the appellant had not
commenced work of the 6 months probationary
period under the contract and rendered any
services for which remuneration would be
payable. Having been prevented from
commencing the contract of service, the
appellant should have mitigated damages by
accepting the re-engagement that had been
offered. That since the appellant had not
commenced work and was given notice of
termination, the contract had not been
commenced and no allowances would accrue.

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