A Buyer Who Takes Unwanted Goods And Does Not Return Them Must Pay For Them, Court Says
Of acts inconsistent with the seller’s ownership
When you purchase goods and later find out that they don’t “conform” to your standards or specifications but you don’t return them to the seller, you are liable to pay for them at the contractual price, the Commercial Court has ruled.
Key Background
On 13th October, 2026, Commercial Court Judge Justice Stephen Mubiru rendered his decision in a breach of a sale of goods and services matter between two private companies involved in the mechanical engineering industry.
In this matter, the plaintiff (Alpha General Enterprises (U) Ltd) had secured a contract to supply welding equipment to the Arua-based Muni University.
Under this contract, Muni University (the client) had stipulated to the plaintiff that the said welding equipment be sourced and procured from the United States of America (USA).
The plaintiff subsequently approached the defendant, (KAT-JET Machinery (U) Ltd), to supply the welding equipment, and the two companies entered into a supply and purchase agreement worth $83,288,77 on 14th October, 2020, where they agreed that the sum would be paid by the plaintiff in two instalments of $43,000 after the signing of the agreement and the remaining $40,288,77 within 30 days after the first delivery of the equipment.
Despite NGO claiming its landlord had attempted to evict it and was in the process of selling the land before Appeal, Judge opts for formal court process of execution.
Active participation in court proceedings without referring to the arbitration clause is a waiver of the right to invoke the arbitration clause and a submission to the jurisdiction of the Court to handle the dispute.
