Thursday, April 1, 2021

Cancellation of Contracts

  Cancellation of Contracts

Cancellation is another remedy for non-performance. Cancellation brings an already existing contract to an end.  What is the difference between invalidation and cancellation?

Cancellation may take two forms-judicial or unilateral. Normally cancellation results from court order. However, there are exceptional circumstances where the party affected by non-performance may unilaterally declare cancellation with out the need to go to court.

Enforcement of Contracts

  Enforcement of Contract

The enforcement of contract is sometimes referred to generally as literal performance or specific performance. Enforcement takes place through court order. Its purpose is to allow the creditor the benefit he expects from performance of the contract. It may take place either through Forced performance or substituted performance. 

General remedies for non-performance of contract under Ethiopian law


 General remedies of non-performance under Ethiopian law


The general provisions of Ethiopian law contract recognize three types of remedies of non-performance. These are stipulated under two sub-articles of Article 1771 as the effects of non-performance. It reads as follows

Monday, March 29, 2021

Ethiopian Law of Contract- Judicial Variation of Contract

  Judicial Variation of Contract

As indicated above, court may be delegated to vary a contract. The court is normally delegated such power when fundamental change in circumstance affects the object of the contract (Art.1766-1770). However; court may also vary a contract where there is undue influence or lesion that never leads to invalidation of the contract (see G.Krzeczunowicz, 1983, p111). Accordingly; in the following court may modify

Ethiopian Law of Contract- Variations of Contracts

Variations of Contracts


Variation is making amendments to the provisions of a contract.  Variation makes change on the object of the contract. Variation of Contract is equivalent to amendment of law.  Variation normally becomes necessary because of fundamental changes in circumstance that the parties or the legislator does not want to tolerate. Minor changes are always expected and may not lead to variation of Contract. Contract may be varied by the parties, legislator and judiciary.

Ethiopian Law of Contract- Debtor’ Right to Receipt

  Debtor’ Right to Receipt (Art.1761-1762)

Whenever required, the debtor has a duty to prove that he has properly discharged his obligation (Art.2001 (2). One means that the debtor can use to prove the performance of the contract is by obtaining written evidence from the creditor (Art.2002). Moreover; an agent has duty to account to the principal all expenses made by him on behalf of the principal.

Sunday, March 28, 2021

Anticipatory Breach of Contract

 It is when the debtor informs the creditor before the debt is due that he (debtor) will not perform his obligation (Art.1757 (2). Such information may be implied from conduct of the debtor or from express statements addressed to the creditor (G. Krzeczunowicz, 1983, p.106). For example, if A and B entered into construction contract whereby A agreed to construct B’s G +3 residential house in Awassa and B agreed to pay 25% of the total construction price  one month before the construction starts. They agreed that the construction had to start on August 12, 2008.

Cancellation of Contracts

   Cancellation of Contracts Cancellation is another remedy for non-performance. Cancellation brings an already existing contract to an end....