Judgment No. SC 15/18
Civil Appeal No. SC 266/15
Enterprises, (“the company”) for the due performance, by the latter, of its obligations in favour of
the appellant.
It was alleged that the company sold fertilisers and crop chemicals on behalf of the
appellant between 31 January 2011 and 12 September 2011 but failed to account to the appellant
for the sum of US$46 717.16. On 13 September 2011, the appellant wrote to the respondent
demanding payment in the sum of US$46 717.16 which it stated had become due and payable as
a result of the company’s failure to pay. The demand was made on the basis of the deed of
suretyship that the respondent had signed in favour of the appellant.
On 26 September 2011, the respondent and one Lazarus Nyakudya wrote a letter to
the appellant in which they acknowledged their indebtedness to the appellant and also expressed
their wish to transfer the suretyship of the respondent to Lazarus Nyakudya. On the same day,
Lazarus Nyakudya signed a deed of suretyship as surety and co-principal debtor with Farmcrop
Enterprises in favour of the appellant on the same terms as the deed of surety signed by the
respondent, save to say that Lazarus Nyakudya expressly renounced all the benefits available to a
surety.
The appellant issued summons against the company and the respondent on
1 December 2011 claiming payment of US$46 717.16. The former was in default and the appellant
obtained judgment in default in the sum claimed.
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