Law of Contract II OUTLINE 2023

Law of Contract II.
Course Description
As a continuation of law of Contracts I, this course, law of Contracts II, examines the special
terms of obligation of contracts. It raises issues related to time provisions, conditions, alternative
obligations, Earnest and provisions as to liability. Furthermore, it discusses the case of plurality
of debtors and creditors and their effects. Moreover, a remarkable place will be given to the
Surety law and status of third parties in relation to contracts that include issues on stipulations for
the benefit of third parties, assignment of rights, delegation of obligations, subrogation and
creditors of the parties. Finally, it analyses issues related to proof in relation to contracts. In all
cases, the discussions in the 158 material presuppose equal protection of law given by the FDRE
Constitution to everybody without discrimination to secure business transaction (Art. 25), right
to use, own, transfer, and dispose of private property(Art.40(1&2)), freedom to engage in any
economic activity of once own choice(Art.41(1) ) etc.
Objectives
At the end of this course, students are expected to:
 Explain the special terms of obligations;
 Explain the rules dealing with plurality of debtors and/or creditors;
 Distinguish joint and non-joint obligations;
 Surety and third party guarantees to contractual relations
 Analyze rules applied on third parties in relation to contracts;
 Explain burden of proof, admissibility of evidence and the role of presumption of
payment.
 Discuss: alternative obligations, status of earnest and effect of liability clauses in
contract;
 Differentiate between joint and non- joint obligations and their effect;
 Identify the treatment and effect of plurality of debtors and creditors comparatively
 Explain surety in comparison to other security devices
 Distinguish among various types guarantors degree of their guarantee;
 Distinguish among assignment, subrogation, and delegation;
 Discuss the rights of heirs and creditors of the parties;
 Explain up on whom shall burden of proof of contract lays;
 Understand the probative value of written evidence;
 Differentiate between period of limitation and presumption of payment.
Chapter ONE: Special Provisions Relating to Contracts
1.1 Time provisions
1.2 Conditional Contractual Obligations
1.3 Alternative Obligations
1.4 Earnest
1.5 Penalty Clause
Chapter TWO: Plurality of Debtors and/or Creditors

2.1 Solidarity Obligations in Case of Plurality of Debtors
2.1.1 Nature of plurality of debtors or creditors in different legal systems
2.1.2 Treatment of plurality of debtors under Ethiopian Law
2.1. 3. The effect of joint and several obligations on the relations between creditor(s) and
co-debtors
A) Res Judicata
B) Default Notice
C) Void and Voidable Obligations
D) Limitation of Actions
E) Remission of Debts
F) Novation
G) Set-off
H) Merger
2.1.4 Defenses open to joint debtors
2.1.5. The Relation of the co-debtors inter se
2.2. Joint Creditors
2.3. Non Joint Obligations
2.3.1 Indivisible obligations
2.3.2 Divisible obligations
Chapter THREE: Suretyship
3.1. Nature of Suretyship
3.2. Effects of Suretyship
3.2.1. Effects of Suretyship between the Creditor and the Surety
A. The moment for action
B. Maturity of debt
C. Simple suretyship and joint suretyship
i). Simple suretyship
ii) Joint Suretyship
D. Acceleration of action by guarantor
3.2.2. Effect of Suretyship between the Debtor and the Surety
3.2. Protection of guarantor's action against debtor
3.3. Plurality of Guarantors
1. Counter Guarantor
2. Secondary Guarantor (in French "suretyship certifier")
3. Plurality of Simple and/or Joint Guarantors
3.4. Relationship between/among Co-sureties
3.5. Extinction of Suretyship
Chapter FOUR: Third Parties in Relation to Contracts
4.1. Promises & stipulations concerning third parties
4.1.1. The option to substitute a third party
4.1.2. The promise for third party
4.1.3. Stipulation for the benefit of a third party
4.2. Assignment of rights and subrogation
4.2.1. Assignment of Rights
4.2.2. Subrogation
4.2.3. Effect of subrogation or assignments
4.3 Delegation and Assignment of Obligations
4.3.1. Delegation of Obligations
4.3.2. Assignment of Obligations
4.4. Heirs and Creditors of the Parties
4.4.1. Heirs of the Parties
4.4.2 Creditors of the Parties
Chapter FIVE: Proof of Contracts
5.1. Evidence in General
5.2. Evidence in Contracts
5.2.1. Onus of Proof and admissibility of Evidence
5.2.2. The Role presumption
a)Effects
b) Presumptions of Payment
Methods of Delivery
Lectures, seminars, student presentations, group discussions, individual and group tutorials, and
assignments
Modes of Assessment
The final grade shall be determined based on the performance of students in the
following activities:
 Assignments / Project/ Essays…20%
 Mid exam. 40%
  Exam(s)…40%
REFERENCE
Laws
1. The Constitution of the Federal Democratic Republic of Ethiopia,

2. Civil Code of the Empire of Ethiopia,1960 Artt.1675-1805
3. Commercial Code of the Empire of Ethiopia,1960
Books
1. George Krzeczunowicz, Formation and Effect of Contracts in Ethiopian Law, Addis
Ababa University,1983
2. Rene David Commentary on Contracts in Ethiopia ,Hailesellasie I University, 1973
3. Girma Gizaw, Ethiopian Contract Law , General Provisions Commercial Printing
Press,Addis Ababa,2002
4. Tilahun Teshome, Basic Principles of Ethiopian Contract Law (in Ahmaric),Federal
Supreme Court,Addis Ababa, 1989
5. Girma Woldselassie, Creditor - Guarantor Relationship under Ethiopian Law, 13 Journal
of Ethiopian Law
6. Planiol, Marcel in collaboration with J. Ripert, Traite Elementaire de Dorit Civil,
Translated by the Louisiana state Law Institute, Volume 2 part 1and 2, 11th edition, 1939.
7. GUENTER TREITEL (2003), THE LAW OF CONTRACT, Published in 2003 by
Sweet & Maxwell Limited, 11th Edition.
8. MARTIN A. FREY and et al, (2000) ,An Introduction to the Law of Contracts, West
Legal Studies Publishers .
9. Catherine Mitchell (2007), Interpretation of Contracts, Current controversies in law.
Routledge-Cavendish Publishers.
Additional materials may be supplied by the course instructor in due course

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Law of Contract II.

Chapter TWO: Plurality of Debtors and/or Creditors

1. The Constitution of the Federal Democratic Republic of Ethiopia,

Additional materials may be supplied by the course instructor in due course

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