Ceiling for Moral Damage Compensation
- Cassation Case No: 69428
- Legal Principle: Compensation for moral damages shall not exceed 1,000 ETB under any circumstances. Even if multiple people are injured in an accident, the total aggregate compensation paid to all parties cannot exceed 1,000 ETB (Civil Code Art. 2116(3)).
Proving a Lost Written Contract
- Cassation Case No: 69208
- Legal Principle: If it is proven that a contract required to be in writing has been torn, stolen, or lost, the contents of that contract may be established through witness testimony or judicial presumption (Civil Code Art. 2003).
Maximum Compensation for Breach of Contract
- Cassation Case No: 69797
- Legal Principle: The party responsible for a breach of contract cannot be compelled to pay compensation exceeding the damage ceiling specified in the contract, such as a performance bond or penalty clause (Civil Code Art. 1731 and 1889).
Obligation to Mitigate Damages
- Cassation Case No: 69915
- Legal Principle: Although the victim of a breach of contract has the right to claim damages, they have a reciprocal obligation under Civil Code Art. 1802 to take reasonable steps to minimize the extent of the loss they might suffer.
Evidence for Monetary Payments
- Cassation Case No: 69160
- Legal Principle: When a dispute arises regarding whether money was handed over as a payment (and the case does not involve a contract of bailment/deposit), the provision requiring loans over 500 ETB to be supported by writing (Civil Code Art. 2472) does not apply. In such cases, oral evidence from witnesses is admissible.
Statute of Limitations for Fatal Accidents
- Cassation Case No: 61326
- Legal Principle: When a harm constitutes a criminal offense, the compensation claim is governed by the longer statute of limitations set in the Criminal Code (e.g., 10 years for death). The acquittal of the perpetrator in criminal court does not shorten this limitation period (Civil Code Art. 2143(2)).
Judicial Presumption on Interest Payments
- Cassation Case No: 51005
- Legal Principle: If a debtor admits they have not fully paid the debt, a court violates the creditor’s right to rebut evidence if it cancels interest by assuming it was paid based on the presumption in Civil Code Art. 2024(f).
Compensation Based on Equity
- Cassation Case No: 60589, 62995
- Legal Principle: If the exact amount of loss cannot be calculated, compensation may be determined based on equity according to Civil Code Art. 2102(1). It is a fundamental error for an appellate court to reduce compensation that was determined based on equity.
Invalidity of Unauthorized Sales
- Cassation Case No: 51034
- Legal Principle: Selling someone else’s property by claiming it as one’s own is an unlawful contract (Civil Code Art. 1716). If the sold immovable property belongs to a third party and not the seller, the buyer is obliged to vacate and return it to the legal owner (Civil Code Art. 2884(1)).
Strict Liability for Dangerous Activities
- Cassation Case No: 58224
- Legal Principle: A person who causes harm while performing a dangerous activity is liable regardless of fault (Civil Code Art. 2069(1) and (2)). However, they are exempt from liability if the damage was caused entirely by the fault of the victim (Civil Code Art. 2086(2)).
Agency and Conflict of Interest
- Cassation Case No: 50440
- Legal Principle: If an agent sells property to a person with whom they have close family ties (e.g., their mother), creating a conflict between the interests of the agent and the principal, the contract may be cancelled (Civil Code Art. 2187(1)).
Unenforceability of Illegal Contracts
- Cassation Case No: 69822
- Legal Principle: Courts cannot enforce a contract that is fundamentally illegal in its content, such as the commercial sale of minerals without a permit (Civil Code Art. 1718(1)).
Obligation of Restitution upon Invalidation
- Cassation Case No: 69653
- Legal Principle: When a contract is invalidated but it is impossible to return the parties to their original positions (for example, if significant construction has been carried out on the property), the contract shall remain effective as if it were valid (Civil Code Art. 1816 and 1817).