THE REPUBLIC OF UGANDA
IN THE SUPREME COURT OF UGANDA
AT MENGO
(CORAM: ODOKI, CJ, TSEKOOKO, KANYEIHAMBA,
KATUREEBE AND OKELLO, JJ.SC.)
CIVIL APPEAL NO. 07 OF 2007
B E T W E E N
GAPCO (U) LTD: :::::: :::::: :::::: APPELLANT
AND
A. S. TRANSPORTERS LTD: :::::: :::::: :::::: RESPONDENT
{An Appeal from the judgment and orders of the Court of Appeal (Mpagi-Bahigeine, Engwau and Byamugisha, JJ.A), at Kampala dated 1st September 2004, in Civil Appeal No. 18 of 2004}.
Judgment of G. M. Okello, JSC:
This is an appeal from the judgment of the Court of Appeal which upheld the judgment and orders of the High Court (Arach-Amoko, J), in a suit instituted by the respondent.
On the 9th May 1993, the respondent entered into a Transport Agreement with Esso Standard (U) Ltd., the predecessor of the Appellant. Under the agreement, the respondent agreed to supply vehicle units, for transportation of the appellant’s products to and from such place or places as shall be notified from time to time and at any time by the appellant to the respondent.
The terms and conditions of the Agreement included inter alia that:
(1)
The transporter shall supply the said vehicle unit(s) with experienced and competent driver or drivers who shall be servants of the transporter but shall obey all the lawful and reasonable directions of the charterers (appellant). All the boarding, lodging, traveling and other expenses of the driver or drivers shall be paid by the transporter.
(3) The transporter shall during the duration of the Agreement, keep the said vehicle unit(s) in good and serviceable order and condition and validly licensed for all the purposes for which they are being used and fully insured under a comprehensive Insurance policy or policies taken out with a company approved in writing by the chaterers.
(5) (a) Every consignment of the