AN OVERVIEW OF THE LEGAL IMPLICATIONS OF COVID-19 ON PERFORMANCE OF CONTRACTUAL OBLIGATIONS IN ETHIOPIA

Abstract

Since the first COVID-19 case was confirmed, the government of Ethiopia has taken measures to contain the spread of the virus, and thereby, ease the socio impact of the pandemic. Although these emergency measures were swift, over time, they remain short-lived due to various reasons. Businesses are forced, inter alia, to cut back production and service delivery, lay off employees temporarily, lack working capitalmaking it difficult to continue operating. Businesses are especially challenged to meet their contractual obligations and keep their commercial relations worthy. As a result, this article overviews the effects of the COVID-19 pandemic on the performance contractual obligations and shows the legal relief adopted in Ethiopian law to escape the liabilities of resulting damage. To that effect, the article employs a doctrinal research method and hence, assesses domestic laws, books, journal articles, web information, and foreign jurisprudence. Thus, it argues that the COVID-19 pandemic affects the performance of contractual obligations, but parties may use force majeure or, if not, vary contractual terms to save themselves from the pitfalls of the current pandemic.