Contract Note 5
Contract Note 5
out of 40%)
I. Jurisprudence (40%) (7-15 pages)
1. What was the grand reasons behind the revival of natural law and additionally discuss Lon
Fuller’s qualities of excellence of Law (15%)
2. Discuss the well known Positivist Austin's concept of Law and it's criticisms (15%)
3. Narrate the debate between HL.A Hart and Lord Patrick Devlin on the issue of enforcement of
morality? (10%)
2. Discuss the meaning and categories of use of force under public international Law? (10%)
3. what are the 1933 Montevedio Convention's simple criterias of statehood? (10%)
4. Discuss the concept of state succession and narrate the default rules of state succession in the
absence of agreement (10%)
3. Discuss the meaning, purpose and rules of Examination in chief, cross examination and
redirect examination (15%)Law of succession
1. Discuss things that make up a succession and things that doesn't make up a succession? 10%
2. List and discuss the reasons for unworthiness in light of the relevant civil code provisions?
10%
3. Discuss the variates of ways in which liquidators of succession can be appointed? 10%4.
discuss the rule of paterna paternis Materna maternis and the conditions for its application ynder
the Ethiopian civil code? 10%
Contract? 15%
1. Formation of contact involves the criteria that the state uses in order to determine whether or
not it has to execute agreements of persons between themselves.Discuss those criterias clearly?
15%
2. Discuss exhaustively The General remedies of non-performance under Ethiopian law?? 15%
3. It is an obvious fact that "Freedom of contact" is one among the basic contractual principle
However, parties‟ freedom of contract is not absoluteas there is Limitations to Freedom of
Contract. Discuss those limitations and the rationals as well? 15%
criminal law I
2. what are the Essential Elements of Crime under the FDRE criminal code ?10%
3. There are Different Stages In The Commission Of Crime. list and discuss those stages?10%
capacities.So discuss those different persons who can participate in the commission of the crime
and show this with example?10%
Criminal law II
1. Discuss the instances of Criminal Responsibility and Irresponsibility under the FDRE
Criminal code?15%
2. There are various theories concerning the purpose of punishment. discuss those theories
including Purposes of Punishment under the Criminal Code? 15%
Law of contracts
Chapter one
obligations in general
The conceptual foundation of obligation traces back to the ancient roman law. different Legal
systems and different scholars define in Various ways
They define obligation as a means of an undertaking or legally binding relationship where one
party promises the other party to perform some acts or tod o something.
Roman jurists define obligation based on their personal opinion, which means different scholars
define it differently.
The Other Roman jurist Pavel understood obligation as an undertaking not by Roman citizen to
perform some acts or not to do or not to give or not to render rights to Roman citizens. This
definition is very defective because it impose obligation only on non Roman citizens and it's
obviously discriminatory. Latter on the institute of Justinian included the roman citizens as well.
Even though the definition under the Roman law was defective and very weak it has become
stepping stone for the development of the concept of obligation throughout the world.
Other definition by blacks law Dictionary define obligation as a legal or moral duty to do or not
to do something.
Our civil code do not define the term obligation like its mother code french civil code the
definition of obligation is indicated in an implied manner.
Even though it is not explicitly defined we can find the implied definition from the cumulative
reading of article 1675 & 1712. those provisions define obligation in the aspect of contract.
it define contract is an agreement whereby two or more persons as between themselves create,
vary or extinguish an obligation of a properitary nature.
Obligation to give
Obligation to do something
A. An active subject: he is the one who has the power to demand tr performance or presentation
also known as the creditor or oblige.
B. passive subject: he is the one who is bound to perform the obligation also known as the debtor
or obligor.
C. an object or presentation: it is the thing to be performed or presented which may consist the
act of giving or not giving doing or not doing something.
D. The juridical tie (vinculum juris) it is the juridical tie or bond between the two subjects by
reason of which the debtor is bound in favor of the creditor to perform the presentation or
obligation.
or it is the coercive force which makes the obligation demandle eg. obligation to deliver,
obligation to pay
Example. Abel entered in to a k+ of sale of Automobile with haile who paid the purchase price
of the automobile. Abel did not deliver the automobile.
Question: who is active subject? who is passive subject? what is the object? what is the juridical
tie?
Obligation has different sources and there is no single source for it.
1. Law. This is to mean the obligation directly arises from the laws enforced in the country.
The government may enact laws on different social economic and political issues without
requiring the consent of all the citizens in the country and everyone in the country has the duty to
respect that state laws. for instance the following obligations emanate from the law:
Payment of tax
NB: obligations arising from the law are not presumed and to be demandle it must be clearly
provided for expressly or impliedly.
2. CONTRACT
Contractual obligation is when the obligation arises from the agreement of the parties.
is the meeting of minds between the two persons whereby one binds himself with respect to the
other.
Obligation arising from contracts have the force of law between the contracting parties because
that which is agreed up on in the contract by the parties is the law between them. thus the
agreement should be complied with good faith. art.(1731(1)
Question: if there is contradiction between the contract and the law which one shall prevail??
Although contracts have a force of law it doesn't mean that contracts are over and above the law.
Rather contracts are with the limitations imposed by the law art.1711 and the following states
that contracting parties may establish such stipulations, clauses,terms and conditions as they may
deem convenient provided that they are subject to the restrictions and prohibitions as are
provided by law.
In this regard when the debtor commits an act ans sustained damage on the other he will be
forced to pay damages or compensation to the injured party.
1.Capacity required for k+ not for tortious activities and there is no exception
2.Requirement of fault is necessary for tort while in k+ non performance itself enough without
showing fault
5. Jurisdiction: in contract the court having jurisdiction is the court of the place where the
contract was made or to be performed in tort court of the place where the wrong was committed
4. UNLAWFUL ENRICHMENT
This is the fourth source of obligation. this type of obligation arises when a person has derived
from the work or property of another person without just cause, that is unjustly enriching himself
at the
expense of another and then he shall indemnify the person at whose expense he has enriched
himself to the extent he has benefited from his work or property eg. 2161 receiving undue
payment
1.3 DISTINCTION BETWEEN OBLIGATION AND CONTACT
1. Obligation is the only source of contract while obligation have other sources like law,
crimes....
2. Contract is bilateral in nature while the Other types of obligation are unilateral
3. All contracts are obligations while not all obligations are contracts
5. Consent is necessary element of contract while consent may not be necessary in other forms of
obligations
Obligations can be classified based on the nature of activities and the number of parties legally
bound by the obligation.
this is when whereby a party undertakes to perform it's obligation by dividing it in to parts.
such parties to the obligation can perform or discharge the obligation by paying half of the debt
of C which is 500 birr each.
B. INDIVISIBLE OBLIGATIONS
In this type of obligation the performance of the obligation undertaken cannot be divided in to
parts.
so due to the conditions and circumstance of it's formation in this type of obligation partial
performance is impossible. eg. sell of car
A. NEGATIVE OBLIGATION
This is the situation where the person's obligation is not to do something or is to refrain from
doing something.
eg 2. Messi undertakes an obligation not to Advertise other soft drink other than Pepsi.
B. POSITIVE OBLIGATIONS
eg2. obligations of the state to fulfill it's people's socio economic rights
A. UNILATERAL OBLIGATION
it arises from a contract which two parties participate however only one of the parties is legally
bound by the contract for the benefit of the other contracting party. eg. donation, agency payment
unpaid አደራ
There is no reciprocal obligation between the contracting parties, rather only one party has an
obligation to perform that unilateral obligation due to that unilateral obligation are called
contracts on gratuitous title
( one may ask that why do someone only be beneficiary while the other party incur only liability
or burden?)
Answer : because this is a matter of civil obligation. So long as their agreement is defect free and
do not contradict with the law they can assume obligation and make some other person
beneficiary
B. BILATERAL OBLIGATION
It arises from a contract entered in to by two parties in which these contracting parties are bound
Legally to each other on equal terms. so accordingly there are two promisors and two promises.
This type of obligation is called obligation based on onerous title (bewaga lay yetemeserete wul)
C. MULTILATERAL OBLIGATION
is the case where mora than two persons undertake to perform and obligation.
In this type of obligation parties who are bound by such an obligation are not jointly liable for
the total debt, but each debtor is liable for his own share with exception of some provisions
(art.1917 " the provisions regarding joint obligation shall apply by analogy to obligations which
are indivisible owing to their nature"
So if the nature of the obligation is indivisible then the provisions of joint liability i.e. 1896 will
be applied which means all co-debtors will be liable until the obligation is fully dircharged.(1896
cum 1897)
it arises from a contractual obligations in which more than one parties participate and debtors are
jointly liable for the debt secured as a result of the obligation entered into with creditor or
creditors.
The specific amount of liability of the debtors or the specific amount of right of the creditors is
not clearly known, rather they are jointly liable until the discharge of the whole obligation.
In this kind of obligation the co-debtors shall be jointly and severally liable unlike joint
obligation where the debtors are jointly obliged to undertake a given obligation.
In joint and several obligation the creditor may require all the debtors or one of them to
discharge the obligation in whole or in part.
It is difficult to give a definitive answer to the question what is contract and contract law.
But one may say contract law is most obviously the law relating to agreements or promises.
There is no single definition for the terms different jurisdictions define it differently.
For instance the French civil code which is the mother code of the Ethiopian civil code define
contract as agreement whereby one or several other persons bind themselves in favor of one or
several other persons to give, to do, or not to do something"
When we say agreement it relates to agreements that the law will enforce.
also contract law is used to mean the whole collection of rules which apply to contract and this
includes many rules which are not contractual in the sense of being based on promise to do
something ( eg. k+ by fraud...is it based on tort or k+ there are different views.
So contract law is primarily concerned with supporting the social institution of exchange
However not all agreement among the society is to be governed under the law of contract. for
instance domestic arrangements are not governed by law at all.
Art. 1675 define contract as "an agreement where two or more persons as between themselves
create, vary or extinguish an obligation of a properitary nature"
In order to clearly understand the definition let's break it down and see each of it's elements.
A. Contract is an agreement
so agreement is one essential defining element and characteristics of k+ law which makes it
different from other laws.
so what is an agreement? agreement is a manifestation of mutual consent or assent by two or
more persons to one another.
The contract being an agreement it is not the paper on which it may be written and signed - such
paper or document is used only as a means of proving that agreement was made expressly.
But contractual agreement is different from non compulsory exchange of consent. eg.
gentlemen's agreement for gratuitous action, free performance of service are not contract.
simply Not every agreements are contract but every contracts are agreement.
A contract in order to be an enforcible agreement before the law atleast two parties are
necessary. there may however be more than two parties but cannot be less than that. this is
because a person cannot enter into a contract with himself for such contract cannot operate to
affect his legal relations with someone else. in other words a man cannot be under Legal
obligation to himself.
But there are exceptions: as per article 2188 of the civil code an agent can conclude a contract
with himself acting on his own behalf or in the name of third party.
the case where the agent concludes a contract with himself on his own behalf is known as self
dealing.
where the agent contract with himself in the name of third party it is known as dual agency.
in both cases the principal can cancel or ratify the contract. this is to avoid conflict of interest.
Other cases like will drawing an order of succession, acknowledgement of natural child,
resignation made by an employee are unilateral expression ta persons intention to generate an
obligation of a civil nature.but they are not contract. because there is only one party.
this is to say that a contract takes effect only between the parties concerned
so as a general rule contract cannot produce effect up on third parties that are not parties to the
contract. see art.1952(1) says except in cases provided in this code contract shall produce effect
only as between the contracting parties "
So in some exceptional cases provided by law contract may have effect on third parties.
eg. art 1957 as per this article parties to a contract may stipulate that one of them shall perform
an obligation for the benefit of third party.
There are also many other exceptions ...but still the principle of relative effect of contract is at
the core of contractual freedom
The contract maybe to create or to vary or extinguish (all of them are contract)the obligation may
be to do or not to do or to give something.
This means that the contract or the agreement must relate with goods, physical or intellectual
services and this excludes contract of status such as bethrotal, marriage,adoptyand the like which
creates obligation of status predefined by law of primarily non patrimonial nature.
It doesn't mean that patrimonial (properitary) obligation do not derive from such status bound
situations such as the payment of alimony (maintenance) but they are not governed law of
contract in all situations.
CLASSIFICATIONS OF CONTRACT
classifying contract is not an easy task, however different scholars define it from different
perspectives.
but still it can be classified even though there is an overlap among the categories of contract.
the difference in the classification of contract basically depends on its formation, enforcibilty and
performance.
In bilateral contract (also called contracts based on onerous title) both the parties have an
obligation to discharge in respect of the other
Bilateral contract is also called synallagmatic contract a relationship which imposes a reciprocal
obligation on both parties
eg. payment of money & delivery of goods, k+ of rent, sale k+, employment contract
Generally wether a contract is classified as unilateral or bilateral depends on what the offeree
must do to accept the offer and binds the offeror to a contract.
So, if the offeree, in order to accept the offer, he must only promise to perform then it is a
bilateral.
In contrast if the offer is phrased to that the offeree can accept only but completing the contract
then it is a unilateral contract.
An Express contract is one in which the terms of the agreement are fully and explicitly stated in
words oral or written
on the other hand an implied contract is is implied From the conduct or the activities of the
parties
Implied contract are different from express contract in that in case of implied contract it is the
conduct of the parties rather than their words that creates and defines the terms of the contract.
Solemn or formal contract are contract that require a special form or method of creation to
enforcible or valid
consensual k+s are k+s in which no special form is required as the k+s are usually based on their
substance rather than form.
Evidentiary purpose
This classification is based on the number of parties that dictate the terms of the agreement.
ADHESION K+ In this kind of k+ in which the terms of k+s are dictated by a party with
overwhelming bargaining power and the signer must agree to those terms or go without the
commodity or service in question
The contract is written exclusively by one party ( the dominant) and presented to the other party (
adhering party) who has no the opportunity to negotiate.
eg. insurance policies, lease k+, loan agreement and others and other types of k+ with
government.
They resemble (seem) law rather than meeting of mind because there is no bargaining or
negotiation.
The parties freely bargain for their respective rights and duties.
eg. life insurance ...the insured pay premium as the time of the formation of the k+ but the
insurer will pay the indemnity when the insured dies ( which is uncertain
eg. loan
COMMUTATIVE K+: Is a type of k+ where k+ting parties are required to perform their
obligation simultaneously. there is no advance time given to one of the k+ting parties
eg. sale
K+ law is mainly and primarily concerned with supporting the institution of exchange which is
an enormous part of our life.
Of course k+ law has many purposes but the centeral one is to support and control agreements
that collectively make up a market economy.
It empowers the parties to make agreements that the law will enforce.
It enables parties to a contract to make exchange that might otherwise carry too great risks that
may come due to the default of one of the parties
VALID K+ : Is an agreement that fulfills all the essential requirements of the law.
VOID : Is one that is non existent From it's inception because the object (purpose) is illegal...and
due to that neither parties can enforce the k+.
VOIDABLE: It is a contract that is defective and can be avoided by one of the parties..or it is an
agreement that enforcible by law at the option of one or more of the parties.
UNENFORCEABLE K+ Is one which cannot be enforced in a court of Law because of some
technical defect.
PROVISIONS APPLICABLE TO K+
this sub provision of the civil code clearly states that the title on k+s in general i.e (art. 1675-
20226) are intended to cover all types of k+s whatever their nature.and irrespective of the parties
thereto.
when we say whatever their nature...it could be sale k+, k+ on immovables , administrative k+,
arbitration k+....etc.
when the law says irrespective of the parties thereto it is to include both natural and artificial
persons.
This means the provisions in the General k+ are common to all special k+s under book V (5) of
the civil code and those k+ governed by the commercial code.
1. NOMINATE CONTRACT
in case of those nominate k+s there is special provision that governs them. eg. special k+ under
book V (5) are nominate k+
2. MIXED CONTRACT
these may contain a number of these nominate transactions each governed by separate rules of
law.
this type of k+ nominate elements of lease(room) deposit ( luggage) sale (food) hire service)
One of their common feature is that there is no special provision to govern them. so it can only
be solved exclusively by using the provisions of the general k+.
Art. 1677 SCOPE OF APPLICATION OF THIS TITLE
This article simply shows the application of the general k+ provisions to the other sources of
obligations other than k+.
The expression "notwithstanding the obligation does not arise from k+" must be taken to mean
notwithstanding that the obligation does arise from sources other than k+.
Not all the provisions of the general k+ applies for them. rather only the relevant one will be
applied.
However issues like rules on performance or non performance of non contractual obligation can
be ruled by general k+ provisions.
again remission of debt, novation, set-off, merger, period of limitation also extinction of
obligation can be applied for others.
Question: art. 1675 define k+ as agreement on things of a proprietary nature. and article 1677(1)
makes general k+ provisions applicable to other types of obligations ...is there any
contradiction??
If so can it be applied for criminal law as well ??? No b/c in criminal law analogy is prohibited.
This means this title on k+s in general applies to special and commercial k+s in so far as only as
it doesn't conflict with special provisions on them.
This sub(2) is all about the manifestation of the principle of interpretation which says special
rules derogate from general rules.
so this sub(2) narrows down the scope of sub art.(1) to exclude fules affecting the special
provisions which applies to obligations of non contractual origin in nature.
so if a lawyer is faced with tort case then first he must look up first his law of tort before
resorting to the title on general k+.if it is not possible to solve the problem by using the tort law
or if there is a lacuna or gap then he can resort to the general k+
Thus, the general provisions of the k+ will assume a supplementing or complementary role and
only will come in to play in the event of a lacuna (gap) or difficulty with the special provisions.
eg. absurdity.
lastly any special provision of uncertain meaning should be interpreted in light of the general law
context.
Question
what is the importance of making the general provisions applicable to other areas of law ???