Contract Law and Power of Attorney
Power of Attorney in Real Estate Sales Contracts: Where a power of attorney is granted for a contract of sale of immovable property, and the contract is not concluded before a contract-concluding body, the contract shall not be easily invalidated if it is not repudiated by the parties (Civil Code Art. 1723). An act performed by the agent within the scope of the power granted shall be deemed to have been performed by the principal (Civil Code Art. 2189(1)). [Cassation File No. 243976]
Performance Guarantee and Penalty for Delay: The purpose of a performance guarantee is to ensure the performance of the contract, and the amount of compensation payable for damages caused by non-performance of the contract should not exceed the amount specified in the guarantee. A penalty for delay is payable when the contractual obligation is not completed within the time specified in the contract. If the work is completely terminated or the contract is rescinded, no penalty for delay shall be paid (Cassation File Nos. 69797, 158350, 136633, 164818). [Cassation File No. 244552]
Force Majeure: This is a sudden and compelling event that prevents a party from performing its contractual obligation, and it must be an event that could not have been foreseen or controlled by the contracting party. A mandatory order issued by a competent authority may be considered a force majeure event (Civil Code Art. 1792). [Cassation File No. 245407]
Property & Land Law
Claim for “Transfer of Title”: A claim requesting “transfer of title” is not a matter for an administrative body but a case with a cause of action that can be brought before and decided by a court. [Cassation File No. 243976]
Proving Security Risk: To prove the existence or non-existence of a security risk, the result of a police investigation has greater strength than ordinary witness testimony. The mere fact that an area is roadside or lacks a fence does not, by itself, indicate a security risk. [Cassation File No. 243988]
House Required for Government Service: Replacing a house required for government service with another house in accordance with a directive is an administrative act, not an act of creating disturbance (Directive No. 8/2013, Article 9(1)(c)). [Cassation File No. 243988]
Landholding Compensation Dispute: Regarding the conditions under which landholding is relinquished for public interest and compensation is paid for property, any dispute concerning compensation payment must first be submitted to the administrative body designated to hear complaints, in accordance with Proclamation No. 1161/2011. Submitting the case directly to court without exhausting the decisions of the administrative bodies is not in accordance with the law. [Cassation File No. 244106]
Revocation /Cancellation/ of Title Deed and Ownership Dispute: A request to “cancel the title deed” concerns an administrative decision and must be examined in accordance with Administrative Procedure Proclamation No. 1183/2013 (Cassation File Nos. 17712, 27604, 220042, 57011, 14554). However, when the submitted claim raises the issue of ownership, i.e., “Whose possession is it?”, and such a dispute cannot be resolved through the administrative review process, the case may be directly heard by a regular court (Cassation File Nos. 229531 and 232118). [Cassation File No. 244430, Cassation File No. 245022]
Claim for “Termination of Nuisance” (“ሁከት እንዲወገድ”): In a claim filed for “removal of Nuisance,” the plaintiff has the obligation to prove that the defendant created an unlawful disturbance on their possession (Civil Code Art. 1149(1) and Civil Procedure Code Art. 259(1)). Carrying out construction on a plot for which a legal possession certificate (title deed) has been issued in accordance with the city master plan is not an act of creating disturbance. [Cassation File No. 244233]
Rural Land Gift: To transfer rural land by gift, a written contract made in accordance with the law is required (Civil Code Arts. 2443, 881, Oromia Regional State Rural Land Use and Administration Proclamation No. 130/1999). An agreement not made in accordance with the law does not interrupt the period of limitation. [Cassation File No. 245667]