Legal Tip of the Week

“In Uganda, verbal agreements are legally binding, but they can be difficult to enforce due to lack of tangible evidence. To protect your business, always put agreements in writing!

Why This Matters:

Clarity: Written contracts clearly define each party’s obligations and rights.

Evidence: They provide legally enforceable proof of an agreement.

Legal Requirement: The Contracts Act, Cap 284 mandates that contracts above UGX 500,000 be in writing to be enforceable in court.

Action Steps:

✔ Always sign written contracts for transactions exceeding UGX 500,000.

✔ Ensure contracts cover all key terms, including payments and obligations.

✔ Have a lawyer draft or review contracts to safeguard your interests.

Need Legal Assistance?

At TMBEI Advocates, we help businesses, SACCOs, and investors stay legally protected with properly structured contracts.

📧 Email: info@tmbeiadvocates.org

📲 Call: +256 772 314 858

🌐 Visit: www.tmbeiadvocates.org

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