Makerere university denies causing loss to gown suppliers

COURT|MAKERERE|GOWNS

KAMPALA - Makerere University has defended itself, saying it is not liable for any loss allegedly suffered by Team Uniform Limited, a company that was contracted to supply graduation gowns.

The company filed a suit at the Commercial Division of the High Court, seeking to recover sh2b in debt from Makerere. The university, however, in its defence, said if any loss occurred, the same is attributable solely to the unethical business practices of the company.

"The defendant denies each and every particular of breach of contract and having incurred any liability to the plaintiff or breached any legitimate content or obligation under the contract," reads the written statement of defence.

The university says it entered into a contract with Team Uniform for the supply of graduation gowns for the years 2017, 2018 and 2019 at sh90,000, inclusive of a 10% fee for each gown supplied.

Through its directorate of legal affairs, the university asserts that the arrangement was that the company would sell and deliver the graduation gowns directly to its students and compile a list.

The plaintiff would then remit the value of the gowns, less by 10% after due verification.

"The plaintiff did supply some gowns to the students at the 69th graduation ceremony, but instead of presenting to the university the actual list with the names of the students, the plaintiff presented graduation booklets to demand payment," the university states.

It adds that the plaintiff never supplied graduation gowns to all graduands at the 69th graduation, which raised a big deficit.

Makerere says due to the unethical business conduct of the plaintiff exhibited during the 69th graduation, the parties agreed that the company would deliver the gowns directly to the university during the 70th graduation ceremony, who would later remit the money to the company less by 10%.

The defendant says the company failed to deliver the graduation gowns in time for the graduation ceremony, as demanded and required by the university and graduands.

The university asserts that the plaintiff while realising that they did not have financial resources to fulfil the supply contract, requested advance payment in order to make the gowns in their workshop.

Makerere says the university has invited the company to carry out a joint verification and reconciliation of the sums due, if any, so that it can settle the same, which the plaintiff has declined to do.

Background

The company contends that it sold 4,000 gowns to the university and left 9,000 gowns unsold due to the cheaper counterfeit graduation gowns.

It contends that the gowns produced were customised for the university, serialised or custom-built for a particular graduation year and, therefore, making it impossible to recycle or re-sell them to graduands of the subsequent graduation ceremony.

The company has asked court to compel Makerere University to pay it interest of the suit at a commercial rate of 28% and 25% per annum from the date of breach of contract till payment in full.