Verbal Contracts In Ethiopia

Summary

Verbal agreements in Ethiopia can be binding if there is clear evidence of the agreement. In Ato Mesfins case, the goldsmiths refusal to honor the original price due to a rise in gold prices is not justified, as the initial verbal agreement is enforceable. In the case of Ato Seyoum, he may seek to invalidate the contract with Ato Tefferri Hailu due to a fundamental mistake in identity, as Ethiopian contract law allows voiding contracts under such circumstances.

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Ato Seyoum advertised in the news paper that he would sell his Fiat for $*,*. Ato Teferri Abebe saw the advertisement and telephoned. Ato Seyoum told him to come over and see it that day. Ato Teferri Hailu also saw the advertisement and he went to Ato Seyoum's house about one hour after Ato Teferri Abebe had telephoned. Teferri Hailu walked up to the door of Ato Seyoum's house and said, "Hello, I am Ato Tefferi. I would like to buy your car but I can pay $ * only." Ato Seyoum presumed that this man was Teferri Abebe and said, "Well, all right, I'll sell it for $*." As Teferri Hailu drove out the gate in the Fiat, Teferri Abebe came in and said, "But Ato Seyoum, I am Teferri Abebe. I will pay you $*, for that car." "Oh, what a terrible mistake I have made," cried Ato Seyoum. Questions Can Ato Seyoum go to court and have his contract with Ato Tefferri Hailu invalidated? Why or why not? use irac
To determine if Ato Seyoum can invalidate the contract with Ato Tefferri Hailu, let's use the IRAC method:
Issue: Can Ato Seyoum invalidate the contract with Ato Tefferri Hailu due to a mistaken identity and the offer made based on that mistake?
Rule: Under Ethiopian contract law, a contract can be voided if there is a fundamental mistake regarding the identity of one party or the terms of the contract.
Application: Ato Seyoum made an agreement with Ato Tefferri Hailu under the mistaken belief that he was dealing with Ato Teferri Abebe. This mistake was fundamental to the contract since the offer of $* was made based on the mistaken identity.
Conclusion: Ato Seyoum may go to court to have the contract invalidated due to the fundamental mistake regarding the identity of the buyer.
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