Civil Code > TITLE XII CONTRACTS IN GENERAL 4

<< < TITLE XII CONTRACTS IN GENERAL 4 > >>

Chapter 4. Special terms of obligations or contracts

Section 1. Provisions as to time

Art. 1857. — Calculation of period of time.

Where an obligation is to be discharged or another act of a legal nature is to be performed after a certain period of time from the date of the contract or any other date, such period shall be reckoned in accordance with the provisions of the following Articles.

Art. 1858. — Period fixed in days.

Where the period is fixed in days, the debt shall be due on the last day of such period, the day of the making of the contract not being included.

Art. 1859. — Period fixed in weeks.

Where the period is fixed in weeks, the debt shall be due on such day of the last week as corresponds by its name to the day of the making of the contract.

Art. 1860. — Period fixed in months.

(1) Where the period is fixed in months or so as to include several months, the debt shall be due on such day of the last month as corresponds by its number to the day of the making of the contract.

(2) Where the period is fixed in accordance with the Gregorian Calendar and no day in the last month corresponds to the day of the making of the contract, the debt shall be due on the hut day of the last month.

(3) The thirteenth month of the Ethiopian Calendar shall not be taken into account.

Art. 1861. — Monthly periods.

(1) Where the period expires at the beginning or at the end of a month, such period shall expire on the first or on the last day of such month.

(2) Where the period expires in the middle of a month, each period shall expire on the fifteenth of such month.

Art. 1862. — Holidays.

Where the period expires on a day which it a holiday at the place of payment, such period shall expire on the next working day.

Art. 1863. — Lapse of time.

(1) Where an obligation is to be discharged within a specified period of time, the debtor shall discharge his obligations before the expiry of such period.

(2) He shall fix the exact date on which he shall discharge his obligations unless the circumstances are such as to show that the said date is to be fixed by the creditor.

Art. 1864. — Period extended.

Where the period is extended, the new period shall, unless otherwise agreed, begin to run from the day following the day on which the first period expired.

Art. 1865. — Benefit of period of time.

The period of time shall be deemed to be fixed for the benefit of the debtor unless the contract or the circumstances show that it is also fixed for the benefit of the creditor.

Art. 1866. — Waiving of benefit of time.

(1) The debtor may discharge his obligations before the expiry of the agreed period of time unless the contrary intention of the parties can be inferred from the terms or nature of the contract or from the circumstances.

(2) Payments made before the expiry of the agreed period of time may not be recovered,

Art. 1867. — Rights of creditor.

(1) The creditor may not demand performance before the expiry of the freed period of time unless such period was fixed for his exclusive benefit.

(2) Where the period is fixed for the exclusive benefit of the creditor, he shall, where necessary, grant a reasonable period of time for the debtor to discharge his obligations.

Art. 1868. — Loss of benefit of time.

The debtor whose insolvency bas been established or who has reduced the value of the securities given by him to the creditor shall loss the benefit of the agreed period of time.

Section 2. Condition

Art. 1869. — Principle.

A contract shall be deemed to be conditional where it relates to an obligation. whose existence depends on the occurrence or non-occurrence of an uncertain event.

Art. 1870. — Good faith.

A party may regard a condition as fulfilled where the other party has prevented its fulfilment in a manner contrary to good faith.

Art. 1871. — Condition precedent.

Unless otherwise agreed, the contract shall be effective as from the day when the condition u fulfilled.

Art. 1872. — Condition, subsequent.

(1) A contract whose cancellation depends on the occurrence of an uncertain event shall be effective forthwith.

(2) It shall cease to be effective where the event ocean.

Art. 1873. — Non-interference.

The parties shall refrain from doing any act likely to prevent the regular performance of the contract upon the fulfilment of the condition.

Art. 1874. — Acts of management.

Acts of management done prior to the fulfilment of the condition by the party who exercises the right shall remain valid where the condition is fulfilled. Damages may be claimed where such acts were done in bad faith.

Art. 1875. — Acts beyond management.

(1) Acts beyond management done by the party who exercises the right may be invalidated where the other party so requires.

(2) Any interested party may require the other party to state within a reasonable period of time whether he will require the acts beyond management to be invalidated.

(3) The effects of invalidation shall be as provided by Art. 1808-1818.

Art. 1876. — Fruits and profits.

The party who exercises the right prior to the fulfilment of the condition shall, where the condition is fulfilled, retain the fruits and profits he received in good faith prior to the fulfilment of the condition.

Art. 1877. — Protective measures,

A party whose conditional rights are imperilled may take such protective measures as he could take, were his rights not conditional.

Art. 1878. — Impossible, unlawful or immoral condition.

The provisions relating to the impossible, unlawful or immoral object of a contract (Art. 1715 and 1716) shall apply where the condition on which a contract depends is impossible, unlawful or immoral.

Art. 1879. — Condition depending on a party.

(1) An obligation assumed subject to a condition the fulfilment of which depends solely on the party who assumes the obligation shall be of no effect.

(2) An obligation shall be deemed to be assumed under sub-art. (1) where the promisor's liability for non-performance of the contract is excluded in the contract.

Section 3. Alternative obligations

Art. 1880. — Principle.

A debtor who is to discharge alternative obligations shall be released where he discharges either of the duties provided in the contract.

Art. 1881. — Rights of debtor.

(1) The debtor may choose which duty he will discharge unless such right is expressly conferred on the creditor or a third party.

(2) Where the party entitled to choose does not exercise his right on being required to do so, such right shall pass to the other party.

Art. 1882. — Performance impossible.

(1) Where the discharge of one of the duties is or becomes impossible, the debtor shall discharge the other duty.

(2) Damages shall be due where such impossibility is due to the fault of a party who was not entitled to choose the duty to be discharged.

Section 4. Earnest

Art. 1883. — Effect of earnest.

The giving of earnest shall be proof of the making of the contract.

Art. 1884. — Performance of contract.

Unless otherwise agreed, the party who has received earnest shall return it or deduct it from his claim where the contract is performed.

Art. 1885. — Non-performance of contract.

(1) Unless otherwise agreed, the party who has given earnest may cancel the contract subject to forfeiture of the earnest given by him.

(2) Unless otherwise agreed, the party who has received earnest may cancel the contract subject to repayment of double of the amount received by him.

Section 5. Provisions as to liability

Art. 1886. — Extension of liability,

The parties may extend their liability under the contract and provide that they will be liable for non-performance notwithstanding that performance it prevented by force majeure.

Art. 1887. — Limitation of liability.

The parties may limit their liability under the contract and provide that liable unless they commit a fault.

Art. 1888. — Acts of employees.

(1) The parties may provide that they will not be liable where non-performance is caused by a fault of their employees or auxiliaries.

(2) Any inch provision shall be of no effect where it is made to the prejudice of, a party who is the employee of the other party.

Art. 1889. — Penalty.

The parties may fix the amount of damages which will be due, should a party fail to discharge his obligations or to discharge them completely and in due time.

Art. 1890. — Rights of creditor.

(1) Unless otherwise agreed, the creditor may require the performance of a contract which includes a penalty.

(2) He may not require both the enforcement of the contract and the penalty unless the penalty was provided in respect of delay or the non-performance of a collateral obligation.

Art. 1891. — Conditions of application.

The penalty shall be due whenever the creditor is entitled to claim damages by reason of non-performance of the contract.

Art. 1892. — Actual damage.

(l) The penalty shall be due notwithstanding that no actual damage was caused to the creditor.

(2) Damages may not be claimed above the amount of the penalty unless non-performance is due to the debtor's intention to cause damage or to his gross negligence or grave fault.

Art. 1893. — Variation of penalty.

The agreed amount of the penalty due for non-performance may not be reduced by the court unless partial performance has taken place.

Art. 1894. — Invalidation.

(1) A penalty shall be of no effect where the contract in which it is prescribed is invalidated.

(2) A contract shall remain in force notwithstanding that the penalty is not valid.

Art. 1895. — Contractual sanctions.

Where a contract provides that a party may apply certain sanctions, should the other party fail to carry out one of his duties, the court shall, notwithstanding any provision to the contrary, verify whether the agreed sanctions may be applied.

LawCodes