Oral Contract 🆚 Written Contract, What Does the Law Say About It.

Kivumbi and Matovu decided to join forces so that they could win tenders to supply beans to the boarding schools in the community. They agreed that they would share the profits 50-50. In addition, Matovu would supply the capital for the beans, and transport the beans to the schools while Kivumbi would provide the land for the farming. When they won the tender, issues arose. Matovu refused to share half the profits because it was his money that was used and even told Kivumbi that he was only entitled to his mercy since there was no contract.

IS IT ONLY A CONTRACT IF IT WAS WRITTEN?

No, it is not. A contract can either be in writing or in verbal form. However, there are some contracts that the law requires to be in writing. For example, contracts of employment must be in writing, as well as contracts for buying things above UGX. 500,000. If this is not done, then the person at fault may be ‘punished’ with a fine by the law. However, if the law requires such a contract to be in writing for it to be valid or enforceable then it is not a contract unless it is written.

Therefore we suggest that whenever you have a contract with someone make sure it is in writing whether the law requires it or not. This will help you to refer to the terms in case of any disagreement such as those between Matovu and Kivumbi.

📷 Credit: Unsplash

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