Stanley Beinababo vs Abaho Tumushabe (Civil Appeal No 11 of 1997) [1998] UGCA 16 (26 November 1998) | Sale Of Land | Esheria

Stanley Beinababo vs Abaho Tumushabe (Civil Appeal No 11 of 1997) [1998] UGCA 16 (26 November 1998)

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Jessica chemeri}{\operator Wor. 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M. OKELLO}{\b\insrsid15616899\charrsid15616899 , JA.}{ \b\insrsid13453500\charrsid15616899 A. E. MPAGI-BAHIGEINE}{\b\insrsid5925704\charrsid15616899 , JA.}{\b\insrsid13453500\charrsid15616899 KITUMBA}{\b\insrsid14102773\charrsid15616899 , JA}{\b\insrsid13453500\charrsid15616899 . }{\b\insrsid15616899 \par }{\b\insrsid13453500\charrsid15616899 \line }{\b\insrsid15616899 }{\b\ul\insrsid13453500\charrsid15616899 CIVIL APPEAL 11/97 }{\b\ul\insrsid5925704 \par }{\b\insrsid13453500\charrsid15616899 \line }{\b\insrsid5925704 }{\b\insrsid13453500\charrsid15616899 Between}{\b\insrsid5925704 \par }{\b\insrsid13453500\charrsid15616899 \line }{\b\insrsid13453500\charrsid5111992 STANLEY BEINABABO}{\b\insrsid5925704\charrsid5111992 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85.}{\b\insrsid13453500\charrsid5111992 APPELLANT }{ \b\insrsid5925704\charrsid5111992 \par \line - }{\b\insrsid13453500\charrsid5111992 AND}{\b\insrsid5925704\charrsid5111992 - \par ABAH}{\b\insrsid14102773\charrsid5111992 O}{\b\insrsid5925704\charrsid5111992 }{\b\insrsid13453500\charrsid5111992 TUMUSHABE}{\b\insrsid5925704\charrsid5111992 \'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85\'85}{ \b\insrsid13453500\charrsid5111992 RESPONDENT }{\b\insrsid5925704\charrsid5111992 \par }{\b\insrsid13453500\charrsid15616899 (Appeal }{\b\insrsid5925704 from the judgment of the High }{\b\insrsid13453500\charrsid15616899 Court (Kania J.) dated 6/12/96 in H. C. C. A. \line No.35 of 1995)}{\b\insrsid5925704 \par }{\b\insrsid13453500\charrsid15616899 \line }{\b\ul\insrsid5925704\charrsid5925704 J}{\b\ul\insrsid13453500\charrsid5925704 UDGMENT }{\b\ul\insrsid13453500\charrsid15616899 OF G. M. OKELLO, J. A. }{\b\ul\insrsid5925704 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14102773 {\b\insrsid13453500\charrsid15616899 \line }{\insrsid13453500\charrsid15616899 This is a secon d appeal. It arose from the appellate decision of the High court (Kania J.) dated 6-12-96 whereby it reversed the trial Magistrate\rquote s judgment and entered judgment against the app}{\insrsid5925704 e}{\insrsid13453500\charrsid15616899 llant. \line The respondent had bought a piece of land from Tindimurekwa (Pw3), the brother of the appellant. Tindimurekwa promised to execute a sale agreement in }{\insrsid5925704\charrsid15616899 favor}{\insrsid13453500\charrsid15616899 of the respondent after the respondent had fully paid the purchase price. The respondent paid }{\insrsid14102773\charrsid15616899 the entire}{\insrsid13453500\charrsid15616899 purchase price in three }{\insrsid5925704\charrsid15616899 installments}{ \insrsid13453500\charrsid15616899 but the vendor did not execute the promised sale agreement. The respondent later entered the land and occupied it apparently without the vendor\rquote s blessing. Subsequently, the vendor\rquote s father who was still the registered proprietor of the land which he had given to the vendor, transferred it to the respondent}{\insrsid5925704 \par }{\insrsid13453500\charrsid15616899 . \line The appellant later bought the same piece of land from his brother PW3 and sued the respondent in the Magistrate\rquote s court of Rukungiri to recover the land. His ground was that the respondent was a trespasser on the land. Before the Magistrate\rquote s court, PW3}{\insrsid12195673 }{\insrsid13453500\charrsid15616899 sided with the appellant. He testified that his sale of the land to the respondent was conditional upon the brother of the vendor consenting to the sale. According to him, that consent was withheld because the land was a family piece of land which could not be sold to an outsider like the respondent. \line The trial Magistrate believed that view and gave judgment for the appellant, ordering inter alia that the respondent vacate the land. On appeal, the High Court set aside the judgmen t and orders of the trial Magistrate. It substituted them with a judgment for the respondent. Hence this appeal. \line There are five grounds of appeal, namely:}{\insrsid14102773 \par }{\insrsid12195673 \'931, That}{\insrsid13453500\charrsid15616899 the learned Judge erred both in law and fact \line }{\insrsid4986057 }{\insrsid13453500\charrsid15616899 by failing to properly evaluate the evidence on record.}{\insrsid4986057 \line 2.}{\insrsid4986057\charrsid15616899 That}{\insrsid13453500\charrsid15616899 the learned Judge erred both in law and fact in holding that the respondent was }{\insrsid12195673 }{\insrsid4986057 }{\insrsid13453500\charrsid15616899 not a trespasser. \line 3. That the learned Judge erred in law in holding that payment of the purchase price in three }{\insrsid12195673\charrsid15616899 installments}{\insrsid13453500\charrsid15616899 stretchi ng from 27-11-90 to 17-7-91 to the vendor by the respondent amounted to a sale of land. \line }{\b\insrsid13453500\charrsid15616899 }{\insrsid13453500\charrsid15616899 4. That the learned Judge erred in law in holding that a transfer executed by the registered proprietor not being a party to the agreement of sale amounted to an agreement between the vendor and the respondent. \line 5. That the learned Judge erred in law in not construing the requirement of consent of the appellant\rquote s brothers as an express term of the contract. \line At the commencement of the hearing of this appeal, neither th e respondent nor his counsel appeared even though there was evidence of due service on the respondent personally. His previous lawyers, }{\ul\insrsid13453500\charrsid15616899 M/s Kakuru and Co. advocates }{\insrsid13453500\charrsid15616899 who represented him in the High Court declined to accept service on the ground that they no longer represented the respondent. At the instance of counsel for the appellant, we allowed the hearing of the appeal to proceed in the absence of the respondent i n term of rule 99(3) of the Rules of this Court. At the hearing, counsel for the appellant abandoned grounds 1, 3 and 5. He argued only grounds 2 and 4 together. \line The gist of Mr. Twesigire, learned }{\insrsid14102773\charrsid15616899 counsel for the appellant\rquote s argument was}{\insrsid13453500\charrsid15616899 : }{\insrsid12195673 \par {\listtext\pard\plain\s15 \insrsid4986057 \hich\af0\dbch\af0\loch\f0 1.\tab}}\pard \s15\ql \fi-360\li720\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\jclisttab\tx720\aspalpha\aspnum\faauto\ls1\adjustright\rin0\lin720\itap0\pararsid14102773 { \insrsid4986057 T}{\insrsid13453500\charrsid15616899 hat there was no enforceable contract of sale of land between the vendor and the respondent as the agreement of sale was}{\insrsid4986057 not reduced into writing.}{\insrsid14102773 \par {\listtext\pard\plain\s15 \insrsid4986057 \hich\af0\dbch\af0\loch\f0 2.\tab}}{\insrsid4986057 T}{\insrsid13453500\charrsid15616899 hat it was irrelevant that the respondent had full}{\insrsid4986057 y paid the purchase price since }{ \insrsid13453500\charrsid15616899 there was no}{\insrsid4986057 evidence of part performance to entitle the respondent to enforce the parol contract.}{\insrsid14102773 \par {\listtext\pard\plain\s15 \insrsid4986057 \hich\af0\dbch\af0\loch\f0 3.\tab}}{\insrsid4986057 T}{\insrsid13453500\charrsid15616899 hat discreet or clandestine taking possession of the land by the respondent }{\insrsid4986057 }{ \insrsid13453500\charrsid15616899 without the consent of the vendor could not constitute part performance.}{\insrsid14102773 \par {\listtext\pard\plain\s15 \insrsid4986057 \hich\af0\dbch\af0\loch\f0 4.\tab}}{\insrsid4986057 T}{\insrsid13453500\charrsid15616899 hat the purported transfer of the land by the vendor\rquote s father to the respondent was not helpful to the respondent because the father was not a party to the contract of sale.}{\insrsid14102773 \par {\listtext\pard\plain\s15 \insrsid4986057 \hich\af0\dbch\af0\loch\f0 5.\tab}}{\insrsid4986057 T}{\insrsid13453500\charrsid15616899 hat the respondent\rquote s remedy lay only in action to recover his purchase price but not for specific performance. }{ \insrsid14102773 \par }\pard \s15\ql \li0\ri0\sb100\sa240\sbauto1\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14102773 {\insrsid13453500\charrsid15616899 Counsel cited the \'93}{\ul\insrsid13453500\charrsid4986057 Law of}{ \ul\insrsid13453500\charrsid15616899 Real Property R. E. Megarry and H. W. R. Wa}{\ul\insrsid14102773 de\'94 4th Edition page 542 and \'93Ha}{\ul\insrsid13453500\charrsid15616899 lsburv Laws of England 3rd Edition Vol.36\'94 page 297. }{ \insrsid13453500\charrsid15616899 He }{\insrsid4986057\charrsid15616899 criticized}{\insrsid13453500\charrsid15616899 the Judge in the lower court for holding that the responde nt was not a trespasser on the land merely because the respondent paid the purchase }{\insrsid4986057\charrsid15616899 price}{\insrsid13453500\charrsid15616899 in full. Finally, counsel prayed that the appeal be allowed with costs here and in the court below}{\insrsid14102773 .}{\insrsid13453500\charrsid15616899 \line I agree that the law puts contract for sale of land in a special category by themselves. To be enforceable, such contracts have to be in writing or have satisfied the equitable requirement of part performance. For example, taking possession of the land with the vendor\rquote s consent. \line The learned authors in their distinguished book entitled \'93The }{\ul\insrsid13453500\charrsid15616899 Law of real Property\'94 }{\insrsid13453500\charrsid15616899 4th Edition at page 542 (supra) \line }{\b\insrsid13453500\charrsid15616899 }{ \insrsid13453500\charrsid15616899 said: - \line \'93But although a valid contract relating to land may be made orally, it will be unenforceable by the most important method of enforcing contracts namely by action, unless either the statutory requirements as to written evidence of the contract or the requirements of equity as to part performance have been satisfied. These requirements put contracts for dispositions of land into a special category by themselves.\'94 \line The learned Judge in the court below made the following remarks at page 5 of the }{\insrsid675\charrsid15616899 judgment}{\insrsid13453500\charrsid15616899 with regard to the need for a written evidence of contract of sale of land}{ \insrsid675\charrsid15616899 : }{\insrsid13453500\charrsid15616899 \line \'93The plaintiff made a lot of capital on the fact that no formal sale contract had been executed an d therefore the sale could not be considered complete. I agree with Mr. Kakuru, learned counsel for the appellant th}{\insrsid675 at between the parties, a sale a}{\insrsid13453500\charrsid15616899 greement was really a formality and that was sufficiently fulfilled by the transfer executed by DW2 and as such the appellant cannot be considered a trespasser.\'94 \line Clearly, that was }{\insrsid675\charrsid15616899 misdirection}{ \insrsid13453500\charrsid15616899 by the learned Judge on the law governing contract of sale of land. As pointed out in \'93The Law of Real Property by Megarry and Wade 4th Edition\'94 (supra) written evidence of a contract of sale of land is necessary for its enforceabil}{\insrsid12468515 ity. It was further stated in Ha}{\insrsid13453500\charrsid15616899 lsbury Laws of England 3rd Edition Vol.36 page 297 that, \line }{\insrsid12468515 \par }{\insrsid13453500\charrsid15616899 \'93Payment in whole or in}{\insrsid675 part of the purchase price is }{\insrsid13453500\charrsid15616899 not an act of part performance which entitles the purchaser to enforce a parol contract.\'94 \line Messrs, Megarry and Wade in their book \'93The Law of Real Property\'94 (supra) at page 547 said that a clandestine entry by the purchaser into the property without the consent of the vendor cannot constitute a lawful po ssession even though the purchaser had paid the purchase money in whole or in part. \line An alternative way of ensuring the enforceability of a parol contract of sale of land is to show clear evidence of the transaction regarding the land. For instance, that t he purchaser has already taken possession of the land with the consent of the vendor. This is to }{\insrsid675\charrsid15616899 fulfill}{\insrsid13453500\charrsid15616899 the equitable requirement of part performance. \line The learned authors stated at page }{\ul\insrsid13453500\charrsid15616899 562 }{\insrsid13453500\charrsid15616899 of their said book that: -}{\insrsid675 \par }{\insrsid13453500\charrsid15616899 \'93In the case of a contract for sale o f land it was thus sufficient act of part performance if the purchaser was let into possession by the vendor for then it was clear that there must be some transactions between them concerning the land. The contract could not be fabricated by perjured evid ence. But if the purchaser merely paid the vendor without taking possession, this was not sufficient act of part performance because it did \line not by itself indicate a transaction about the land.\'94 }{\insrsid675 \par }{\insrsid13453500\charrsid15616899 In the instant, case the learn}{\insrsid675 ed Judge agreed that between parties the written sale }{\insrsid1669091 agreement}{\insrsid1669091\charrsid15616899 was}{\insrsid13453500\charrsid15616899 a mere formality since the purchaser had paid the purchase price in}{\insrsid1669091 }{\insrsid13453500\charrsid15616899 whole. In his view, even that formality was fulfilled by the transfer executed by DW2 in }{\insrsid1669091\charrsid15616899 favor}{ \insrsid13453500\charrsid15616899 of the respondent and that therefore the purchaser could not be considered a trespasser on the land.}{\insrsid1669091 \par }{\insrsid13453500\charrsid15616899 As was pointed out earlier, this was }{\insrsid1669091\charrsid15616899 misdirection}{\insrsid13453500\charrsid15616899 . Payment of the purchase money whether wholly or in part does not entitle the purchaser to enforce the p arol contract. Similarly, a clandestine taking possession of the land by the purchaser does not entitle him to enforce the parol contract. He needs the consent of the vendor to take possession of the land as evidence of part performance}{\insrsid12468515 .}{\insrsid13453500\charrsid15616899 \line In }{\ul\insrsid13453500\charrsid15616899 Delaney v T. P. Smith Ltd. (1946) KB 393, }{\insrsid13453500\charrsid15616899 the vendor repudiated an oral agreement but the purchaser nothing daunted, made a clandestine entry into the property. On being forcibly ejected by the vendor, the purchaser claimed that he had been lawfully in possession under t he contract and so could not be disturbed. This argument failed because the vendor was still the legal owner of the property and the purchaser\rquote s title could be proved against him only if the action was founded on the contract which was precisely what the statute forbade. \line In the instant case, the purchaser\rquote s title was being proved against a third party. As against the third party, the respondent\rquote s title is founded on possession, not on the contract. Under the common law, possession is the root of title. Eve ry possession creates a title which as against all subsequent }{\insrsid12468515\charrsid15616899 intruders}{\insrsid13453500\charrsid15616899 has all the incidents and advantage of a true title. See }{\ul\insrsid13453500\charrsid15616899 Pollock and Waight, Possession in the Common Law }{\i\ul\insrsid13453500\charrsid15616899 p.95. }{\insrsid13453500\charrsid15616899 The respondent was already in possession of the land. To succeed, the ap pellant needed to show that he has a better title than that of the respondent. He cannot set up }{\ul\insrsid1669091 juster}{\ul\insrsid13453500\charrsid15616899 ii }{\insrsid13453500\charrsid15616899 as has been done, against the respondent to defeat his title. Only parties to a contract can sue on it. The }{\insrsid1669091\charrsid15616899 appellant,}{\insrsid13453500\charrsid15616899 who is not a party to the contra ct of sale of land between PW3 and the respondent, cannot invoke the right under that contract against the respondent. I accordingly find no merit in these grounds. \line In the result, I would dismiss the appeal with costs only in the court below}{ \insrsid1669091 as the respondent did not appear}{\insrsid13453500\charrsid15616899 at the hearing of the appeal. As Mpagi-Bahigeine, J. A. and Kitumba, J. A. both agree, the appeal is dismissed. The appellant shall pay the respondent\rquote s costs in the court below only. \line }{\i\insrsid13453500\charrsid15616899 \line }{\insrsid13453500\charrsid15616899 Dated at Kampala this }{\insrsid1669091 27}{\super\insrsid1669091\charrsid1669091 th}{\insrsid13453500\charrsid15616899 . day }{ \insrsid1669091\charrsid15616899 of }{\insrsid1669091 November }{\insrsid13453500\charrsid15616899 1998}{\insrsid1669091 \par }{\b\insrsid13453500\charrsid5111992 G. M. OKELLO }{\b\insrsid13765378\charrsid5111992 \line JUSTICE OF APPEAL \par }{\insrsid13765378 \par }{\insrsid12468515 \par }{\b\ul\insrsid13453500\charrsid9177166 JUDGMENT OF A. E. MPAGI-BAHIGEINE,J. A}{\ul\insrsid13453500\charrsid15616899 . }{\insrsid13453500\charrsid15616899 \line I have read the judgment of Okello,J. A. in draft. \line I find myself in complete agreement with the learned judge, and have nothing useful to add. \line Dated at Kampala this}{\insrsid13765378 27}{\super\insrsid13765378\charrsid13765378 th}{\insrsid13765378 day }{\insrsid9177166 of November.1998}{ \insrsid13453500\charrsid15616899 .}{\insrsid9177166 \par A. E. MPAGI-BAHIGEINE \par }{\ul\insrsid9177166\charrsid9177166 JUSTICE OF APPEAL}{\ul\insrsid13453500\charrsid9177166 \line }{\i\ul\insrsid13453500\charrsid9177166 }{\ul\insrsid13453500\charrsid9177166 \par }{\b\insrsid13453500\charrsid15616899 \line }{\b\insrsid12468515 \par \par }{\b\ul\insrsid13453500\charrsid15616899 JUDGMENT OF C. N. B. KITUMBA, J. A. }{\b\insrsid13453500\charrsid15616899 \line }{\insrsid13453500\charrsid15616899 I have had the advantage of reading the judgment of My Lord Okello, J. A. in draft. I entirely agree with the judgment and I have nothing to add. \line I would dismiss the appeal. The appellant shall pay the respondent\rquote s costs in the court below as the respondent was }{\insrsid9177166\charrsid15616899 not }{\insrsid9177166\charrsid9177166 present}{\insrsid13453500\charrsid15616899 at the hearing of this appeal.}{\insrsid9177166 \par }{\insrsid13453500\charrsid15616899 \line Dated at Kampala this }{\insrsid9177166 27}{\super\insrsid9177166\charrsid9177166 th}{\super\insrsid12468515 }{\insrsid13453500\charrsid15616899 day }{\insrsid9177166 of November 1998}{ \insrsid13453500\charrsid15616899 \line }{\b\insrsid13453500\charrsid15616899 C. N. B. Kitumba \line }{\b\ul\insrsid13453500\charrsid9177166 Justice of Appeal}{\b\insrsid13453500\charrsid15616899 . }{\insrsid13453500\charrsid15616899 \par }\pard\plain \ql \li0\ri0\sl360\slmult1\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14102773 \fs24\lang2057\langfe1033\cgrid\langnp2057\langfenp1033 {\lang1033\langfe1033\langnp1033\insrsid13453500\charrsid15616899 \par }{\insrsid10825639\charrsid15616899 \par }}