HOW A COMPANY MAY LEGALLY RECOVER DEBT FROM ITS DEBTOR IN UGANDA.

HOW A COMPANY MAY LEGALLY RECOVER DEBT FROM ITS DEBTOR IN UGANDA.

Law applicable

• CONSTITUTION OF THE REPUBLIC OF UGANDA
• CONTRACT ACT OF 2010
• Among others which may provide specifically for such contracts.

It is a legal requirement for contracts of 500,000 and above to be in writing.

1. The company should look at the terms and conditions of the contract for guidance
2. The company managing director or any authorized person in the company should then draft a payment a reminder addressed to the DEBTOR or DEBTORS if many.
3. The payment reminder should be copied to the Guarantors too if any.
4. The reminder should clearly state the period within which to pay, basis of payment and the sum being demanded in accordance with the terms and conditions of the contract.
5. Failure for the debtor(s) to heed to your reminder for payment, The company should instruct transactions lawyer/Advocate/AVOCAT/Maitre at a fee with all necessary documents touching the transaction to recover the Debt.
6. The transactions lawyer/Advocate/AVOCAT/Maitre shall peruse the document provided and have an interview with the responsible/concerned officers/witness from the company for purposes of establishing the claim.
7. If the transactions lawyer/Advocate/AVOCAT/Maitre finds merit in the information provided he or she will then prepare a demand note cum notice of intention to sue addressed to the debtor/debtors precisely laying out all the company’s claims and the period within which to satisfy them as per the law.
8. In the event that the debtor/debtors ignore (s) and there is arbitration /mediation clause in the contract, the transactions lawyer/Advocate/AVOCAT/Maitre should then prepare the arbitration claim/summaries or mediation claim or summaries and submit them to an arbitrator or mediation if already appointed in contract.
9. In case there is no arbitration clause or mediation clause the pliant will be drawn and filed with the necessary attachments in appropriate court for recovery of the debt. However the matter shall go for court sanctioned mediation process first..

NB. It is legal requirement to issue notice of intention to sue against intended defendants in Uganda .Failure to do so might deny you costs of the suit.

It is my humble considered recommendation that the business community should embrace litigation as a shield not a sword (it should be a last resort to protect your interest)

Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS.

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Email address: onlinetransactionconsultancy@gmail.com.

NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.

For specific technical / legal transaction advice on this subject matter and related subject, you may contact the author at online consultancy fee, or contact any transaction legal consultant of your choice.
For avoidance of impersonation, all email correspondences/communication from me to you must be followed up with a phone call on the above mobile number to verify the contents of replies from my email account pertaining a given subject matter..
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