KAMPALA INTERNATIONAL UNIVERSITY

SCHOOL OF LAW

COURSE UNIT : CONSUMER LAW AND PRACTICE

COURSE : LLB

COURSE CODE : LLB3201

YEAR : THREE/ SEMESTER/TWO

SESSION : DAY

NAME OF LECTURER : MR AKINEZA AUGUSTINE

ASSIGNMENT : COURSE WORK

STUDENT NAME : RUHIIGA TWINSON

REGISTRATION NO. : 1153-01024-00303

1
QUESTION: ONE

“The enactment of the sale of goods and supply of services act 0f 2017 by the
parliament of Uganda has revolutionized the protection of consumers of
goods and services in Uganda” Emma an LLB 3rd year student at Kampala
international university asserts.

With relevant examples / illustrations, highlight the salient features

introduced by the act and their merits in the protection of consumers of
goods and services in Uganda.

The sale of goods and supply of services act of 2017 has indeed revolutionized
the protection of consumers and it has come in a period of dire want since the Sale of
Goods Act, Cap 82 which came into force on the 1st January 1932 by virtue of
ordinance No.28 of 1930 has been over taken by events. Whereas its progenitor has
evolved over time through various legislative reforms, the Ugandan Act has remained
unchanged despite amendments to the Sale of Goods Act 1893.

The sale of goods and supply of services act of 2017 was promulgated on 2nd
January 2017 and its assent was done on 19th December 2017 and its
commencement is 8th January 2018

The sale of goods and supply of services act of2017 defines a "sale” to mean a
bargain and sale as well as a sale and delivery; "seller" means a person who sells or
agrees to sell goods; "buyer" means a person who buys or agrees to buy goods or
who procures or agrees to procure services; "contract of sale" includes an agreement
to sell as well as a sale;

The sale of goods and supply of services act of 2017 defines a ‘’consumer’’ under
section 1 of the interpretation to mean a person who purchases goods or services for
final use or ownership rather than for resale or use in production.

Further under the interpretation section 1 it defines "services" to mean any service or
facility provided for gain or reward or otherwise than free of charge, including services
or facilities for - (a) banking, insurance, grants, loans, credit or financing; (b)
amusement, cultural activities, entertainment,
instruction, recreation or refreshment; (c) accommodation, transport, travel, parking or
storage;
(d) the care of persons, animals or things; (e) membership in a club or organization or
any service or facility provided by the club or organization,; and (f) any rights, benefits,

2
privileges, obligations or
facilities that are or are to be provided, granted orconferred in the course of services
but does not include services provided under a contract of employment.Section 3
defines “Contract for the supply of services” to mean a contract where services are
transferred or are to be transferred or bailed or are to be bailed by way of hire under
the contract regardless of the nature of the consideration for which the
service is to be carried out.

With regard to the question at hand, I shall first tackle the salient features introduced
by the new act of sale of goods and supply of services act of 2017 and below are the
salient features introduced by the act;

1. The SGSS- sale of goods and supply of services of 2017 act increases the
financial threshold for contracts that shall be unenforceable unless some note or
memorandum in writing of the contract is made from the two hundred shillings
(200 ugx) provided in the SOGA – sale of goods act cap 82 to five hundred
thousand shillings only (500,000 ugx). This is a salient feature of how the
contemporary economic realities must be applied.

2. With regard to agreements to sell at valuation, the SGSS- sale of goods and
supply of services act 2017 alters SOGA’S- sale of good act cap 82 section 10 to
make agreements to sale by valuation voidable rather than voidin cases
whereby unless the goods have been delivered to and appropriated by the buyer
in which case he or she must pay a reasonable price for the appropriated goods.
This means the agreement of sale will remain valid at the option of the injured
party unless it’s repudiated by him or her at his or her own discretion whereas
under SOGA the same facts constitute automatic repudiation of the agreement.

3. SGSS- sale of goods and supply of goods act 2017 creates a salient feature
in relation to implied terms, it creates an implied term under section 18 as to
care and skill in supply of services, this implies that whereas there is a contract
of sale of services, reasonable care and skill must be applied. Under section 16
the new act introduces an implied condition as to quality of materials used in a
contract for the supply of services Where materials are used under a contract for
the supply of services there is an implied term that the materials will be sound
andreasonably fit for the purpose for which they are required.

3
4. While the SGSS-sale of goods and supply of services act of 2017 retains the
definition for unascertained goods found in section 17 of SOGA , section 23
SGSS however introduces a new provision with undivided shares of
unascertained goods forming part of a bulk and this provision states conditions
under which title to such goods may pass, SGSS assumes that unless otherwise
agreed , the goods remain at the sellers risk until the property in the goods is
transferred to the buyer , however unlike SOGA , the SGSS attempts to build on
the rules surrounding this principle accordingly as provided for under section 23
of the SGSS.

5. SGSS-sale of goods and supply of goods act of 2017 under section 28 creates a
salient feature of the principle of reservation of right of disposal, this applies
where there is a contract for sale of specific goods or where goods are
subsequently appropriated to the contract, the seller may by the terms of the
contract or appropriation reserve the right of disposal of the goods until certain
conditions are fulfilled.

6. Section 35 of the SGSS-sale of goods and supply of services act of 2017

introduces a salient feature where it makes payment and delivery concurrent
conditions. This implies that unless otherwise agreed, the delivery of goods and
payment of price must coincide with each other thus the seller must be willing to
give possession of the goods to the buyer in exchange for the price and vice-
versa.

7. The SGSS-sale of goods and supply of services act of 2017 creates a

salient feature under section 38 that the buyer can partially reject the goods
where the goods are not in conformity with the contract or are contrary to an
implied term.

8. Under section 46 SGSS-sale of goods and supply of services act of 2017

creates an implied term as to the duration for the performance of services. This
provision is to the effect that where under a contract for supply of services by a
supplier acting in the course of business, the time for the services to be carried
out is not fixed by the contract but is left to be fixed in a manner agreed by the
contract or determined by the course of dealing between the parties, there is an
implied term that the supplier will carry out the services within a reasonable time
– a reasonable time is to be construed from a question of fact.

4
 9. The SGSS-sale of goods and supply of services act of 2017 introduces section
47 under PART V which is to the right to repair or replace goods where the
goods do not conform to the contract the buyer may require the seller to replace
or repair the goods.

10. Right to reduce purchase price or rescind the contract, this is introduced
under section 48 of the SGSS-sale of goods and supply of services act of
2017 and this salient feature offers the buyer the option to require the seller to
reduce purchase price of the goods by an appropriate amount or rescind the
contract with regard to those goods if it’s impossible for the seller to repair or
replace the goods.

11. In relation to remedies, the SGSS-sale of goods and supply of services act
of 2017 under section 49 asserts that where the buyer requires the seller to
repair or replace the goods, the buyer shall not reject the goods and terminate
the contract for breach of condition until he or she has given time in which to
repair or replace the goods.

12. The SGSS-sale of goods and supply of services act of 2017 similarly like
the SOGA-sale of goods act cap 82 provides the seller or supplier with two
remedies as stipulated under section 60 which are action for the price and
action for non-acceptance as provided for under section 61 where the buyer
wrongfully neglects or refuses to pay the price for the goods or services.

13. The SGSS-sale of goods and supply of services act of 2017 does not make
vast changes with regard to the buyers remedies as stipulated under sections
62, 63 and 64, the new act maintains the same remedies in the SOGA-sale of
goods act cap 82 which are action for non-delivery of goods or failure to supply
the services, right to specific performance and a remedy for breach of warranty.

The new act SGSS-sale of goods and supply of services act of 2017 accords the
consumers the following protection;

(a) The consumer is protected in a manner that the new act provides that the
supplier of services must use reasonable care as stipulated under section 18 of
SGSS-sale of goods and supply of services act of 2017

(b) The consumer is protected in transactions of unascertained goods which are bulk
where by the goods remains at the sellers risk. The new act introduces a new

5
 provision with undivided shares of unascertained goods forming part of a bulk
and this provision states conditions under which title to such goods may pass,
SGSS assumes that unless otherwise agreed , the goods remain at the sellers risk
until the property in the goods is transferred to the buyer. (section 23 SGSS
2017).

(c) The consumer is also protected under Section 35 of the SGSS-sale of goods
and supply of services act of 2017 which introduces a salient feature where
it makes payment and delivery concurrent conditions. This implies that unless
otherwise agreed, the delivery of goods and payment of price must coincide with
each other thus the seller must be willing to give possession of the goods to the
buyer in exchange for the price and vice-versa and the consumer will be able to
receive the goods as long as he pays the price.

(d) The consumer is protected under SGSS-sale of goods and supply of

services act of 2017 which creates a salient feature under section 38 that the
buyer can partially reject the goods where the goods are not in conformity with
the contract or are contrary to an implied term, this means that consumer is at
liberty to reject the goods if they are not in conformity with the terms of the
contract.

(e) The consumer is protected in a manner that if the goods are damaged, he or she
can rescind the contract or have the price of the goods reduced

(f) The consumer is also protected in amanner that if the goods are destroyed or
damaged, he or she may require the seller to repair or replace the goods. This
implies that at all times, the consumer has a better hand of protection.

In conclusion, The new act of SGSS-sale of goods and supply of services act of
2017 is undoubtedly a drastic improvement on the sale of goods act cap 82 and is
one of the most finest accomplishment and its dispensation is directly a simpler and
much comprehensible diction and unlike its predecessor, its new sections and provisions
are well argued and easy to follow and there is no doubt if I say that it’s a good piece
of legislation.