St.

Mary’s University
College of Open and Distance Learning
Business and Company Law
Assignment
(2012 – II)
Student’s Name: Saleamlak Zerihun
ID. No: D4MN143987/11
Department: Management
Term:Three(3)
Center: A.A

Program: Degree

 This is the only assignment of this course.

 This assignment is to be completed and submitted to the office of your
center. Do not attempt the assignment until you are certain that you
have understood the units it covers and have revised your self-test
exercises and learning activities, and other necessary reference.
 If you have any question about the units and activities, state the item/s
clearly on a separate sheet of paper and attach to your assignment
paper.
 Due Date: This assignment must be submitted to the office of your
center ON OR BEFORE THE TUTORIAL PROGRAM. Please strictly
follow the deadline indicated.
Part I: Short Answer (30 pts)
Give short and precise answers to the following questions in the space provided.
1. Marita bought a new store from electronic shop or stare. After using it several times she
discovered that its temperature reading is not quite correct. These light deviations would
be significant only to a commercial cock which Mariza is what remedies does Mariza
have under the Ethiopian sales law?
Support your answer based on legal reasons. (10pst)
Ans:Under the Ethiopians sales law,Art 2289of civil cod,the thing delivered is considered
to be defective if it does not possess a quality for its commercial exploitation.Maritha
bought the stove to make business because she was a commercial cook.If the delivered is
defective,the buyer must give notice to the seller (Art 2292 of the civil cod). Then the
buyer may exercise his right under the warranty's by instituting a legal action against the
seller.The buyer may,demand replacement of defective thing and may in addition claim
damage (Art 2300 of the civil cod).
2. When and under what conditions are contracts required to be interpreted? What is the
necessity of interpretation? (6pts)
Ans: Interpretation is a process where by uncertainties or ambiguity in the worfs of a
contract are resolved.in principle,contract may be interpreted only when the provisions
of the contract are not clear.where the contract are clear,the court may not resort to
interpretation.the court may not make a contract for the party for under the guise of
interpretation.
3. Identify and explain two ways in which the termination of contract differences from
invalidation of a contract. (5pts)
Ans:a) The ground for termination is difference from the ground for invalidation.
b) Invalidation has a retroactive effect whereas termination has no retroactive effect.
4. Kebede sold a cell phone (smart phone) to Almaz. However, before delivery took place,
Getachew stole the smart phone and sold it to Mahiet for Birr 1,000.
A. who is the owner of the smart phone? (4pts)
Ans:when getachew stole the phone from kebede, kebede is still owner of the phone.Even
though he sold the phone to Almaz, Almaz did not have title on the phone when it was
stolen.according to civil cod Art.1186.so,Almaz can't be owner.Mahite also,can't owner
based on Art.1165 of the civil cod.Therefore Kebede is still the owner.

B. What remedy does Almez have against Kebede? What about against Mahelt. (5pts)
St. Mary’s University 1 Business and Company Law (Degree)
Ans: Assuming that Almaz has already paid the purchase price,she can demand her momey back
from kebede.The failure of kebede to deliver the phone to Almaz is something that can be
considered as force majeure under Art.1793(a) of civil cod.if failure to perform is the result of
force majeure,the debtor is excused(Atr.1791 (2).if the phone is stolen that means the obligation
of the seller has become impossible.if performance become impossible,either party can cancel
the contract.in this case,it is Almaz,the buyer who can cancel the contract.The remedy of Almaz
against kebede is cancellation on the ground of impossibility of performance.but Almaz didn't
have any remedy against Mahilet because there was no cause of action against Mahilet.

St. Mary’s University 2 Business and Company Law (Degree)