National Educational Assessment and

Examinations Agency (NEAEA)

National Exit Examination for
LL.B Programme Students of Ethiopian
Law Sch ools
Academic Year 2014

Part I: Private Laws

28 October 2014
Time Allowed: 3 (Three) Hours
Instructions:

• This is a closed book exam for all materials except clean copies
pertinent Ethiopian l aws which can neither be lent to nor borrowed
from other students.
• The Exam has five sections. The grades allotted fo r each are
indicated beside the title of the section.
• Whenever Appropriate buttress your arg uments with perti nent legal
provisions
• You are expected to allocate your time based on the marks allotted
per question.
• Write your answers in the answer sheet provided.
• Switch off your mobile phone.

Please do not tum this page until you are told to do so!

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 SECTION I: CHOOSE THE BEST ANSWER (250/0, 1% EACH)
1. What is the status of the relationship between the adopted child and
his/her the family of origin?
A. It ceases to exist as soon as an adoption ag reement is concluded.
B. It is not affected by the agreement of adoption.
C. Its status is to be determined by the terms of the adoption
agreement.
D. Its status is to be determined having regard to the best interest of
the child.
E. Its status is to be determined having regard to the age of the child.

2. For a person to acquire ownership through occupation in Ethiopia:

A. The object may be ordinary movable or special movable.
B. The object should not have had a master at any point in time
previously.
C. Movables which are part of public domain are susceptible to
occupation.
D. Farm animals become susceptible of occupatio"n and the owner
loses his title one month after they escape his control.
E. Farm animals like oxen and camels will be property without master
when the owner failed to exercise his rights for ten years or when
they are abandoned by the owner.

3. Under the 1960 Civil Code of Ethiopia, contracting parties do have full
"freedom to accomplish any of the following acts except:
A. Determining mode of appropriation of payment.
B. Determining the quality of fungible things.
C. Determining the place, time, and manner of performance of tHe
contract.
D. Giving period of grace to a non-performing party.
E. Determining the validity requirements of a contract.

4. Which of the following is different among the given alternatives?

A. Product liability.
B. Vicarious liability.
C. Strict liability.
D. Absence of fault not a defense.
E. Liability imposed on producers.

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5. Which of the following is correct regarding transfer of ownership of
immovable things through contract of sale in Ethiopia?
A. The contract will not have any effect unless entered in writing,
attested by witnesses , authenticated by notary, and registered.
B. The contract will be binding between the contracting parties as long
as it is written (and signed by parties).
C. The contract will have a binding effect between parties only when it
is entered in writing and authenticated.
D. An owner who has entered in to a written contract (which is also
authenticated) to transfer title to one party can enter in to valid
contract of sale with second party over same immovable and
transfer valid title to such party.
E. C & D.

6. Which of the following statements is correct among the given alternatives?

A. The fact that a person is legally declared liable for the act of the
tortfeasor, according to the Ethiopian law, is not a bar for a plaintiff to
have a claim against the doer of the act.
B. The Ethiopian Law of strict liability always provides surrender options.
C. Third party creditors, under Ethiopian law, may claim compensation from a
tortfeasor as legal representatives of the victim irrespective of the nature
of the damage the plaintiff suffers.
D. A & B.
E. A & C.

7. Which one of the following statements is necessarily true about the rights
of a guarantor as per the Ethiopian Civil Code of 1960?
A. A guarantor who has pa.id to the creditor has the right to claim
indemnity from the principal debtor under aU circumstances.
B. Generally speaking, the guarantor has the right to set up defenses
that could be set up by the principal debtor against the creditor
even if the principal debtor declines to raise such defenses.
C. The guarantor does not have the right to summon the creditor to
proceed against the principal debtor before the maturity date of the
obligation under all circumstances.
D. All.
E. None.

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8. Which of the following statements is correct among the given
alternatives?
A. In the Ethiopian law of extra~contractual liability, unlike the criminal
law, the mental element of the defendant is irrelevant to decide
whether or not he is at fault.
B. Remedies in the extra-contractual liability law of Ethiopia are
sometimes available when defendant's fault is proved regardless of
the fact that an actual or perceived material damage occurs to the
plaintiff's interest.
C. Insanity is not a defense that can exempt a person from liability
under the Ethiopian extra-contractual liability law.
D. All.
E. Only A & B.

9. Which of the following is not part of the right of a joint owner of a thing?
A. A jOint owner can pledge his share without the consent of other co-
owners.
B . A joint owner can avoid liability incurred in relation to jointly owned
thing by surrendering his share.
C. A joint owner can use a jointly owned thing without the permission
of co-owners on condition that such use takes due account of the
purpose for which the property is acquired and the rights of other
co-owners.
D. A Joint owner can block any collective decision regarding a jointly
owned th ing.
E. B & D.

10. Which of the following donations or liberalities is not subject to

collation?
A. Any money spent for the education of the heir.
B. Any money that is given to establish the heir.
c. Money paid to settle the debts of the heir.
D. Property or money given to the heir during his marriage in the
form of dowry.
E. None.

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11. Which one of the following statements is not true about subrogation
under the Ethiopian Law of Contracts?
A. It is exactly the same as the principle of indemnity in all
circumstances.
B. It is created by the agreements of the contracting parties both in
the case of surety and plurality of debtors.
C. It is applicable by virtue of the law.
D. It is created by judicial decision in the case of surety.
E. All.
12. Which one of the following statements is incorrect among the given
alternatives?
A. Damage is a necessary and sufficient condition to hold a perpetrator
liable under the Ethiopian tort law.
B. Uncertainty as to the exact amount of damage caused is a defense
for a perpetrator to escape liability under the Ethiopian tort law.
C. Causation is a general precondition for strict liability for damage
under the Ethiopian tort law.
D. A and B.
E. All.

13. Identify incorrect statement (s) regarding possession in Ethiopia.

A. A possessor can protect his possession by bringing possessory
action thereby proving his titles to his property.
B. A Possessor whose possession is usurped forcefully can restore his
posseSSion by applying proportionate force anywhere he meets the
usurper.
C. Possession is understood in Ethiopia in terms of only a physical
control a person may have on a thing.
D. B & C.
E. All.
14. A contract duly created by the contracting parties:
A. May establish the value of exchange.
B. Defines the respective rights and obligations of the contracting
parties.
C. Enables the contracting parties to allocate risks in advance as
between themselves.
D. All.
E. A and B.

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15. Which of the following statements is incorrect among the given
alte rnatives?
A. Compensation by way of money is the only mode of remedy in the
Ethiopian tort law.
B. The existence or otherwise of intention, according to the Ethiopian
law, is always irrelevant to decide whether or not the defendant is
at fault.
C. The Ethiopian Law of strict liability excluded consideration of fault
from the side of neither of the parties to tortious litigation.
D. All.
E. None.

16. Which one of the following grounds of extinction of a contract

necessarily requires the agreement of both contracting parties?
A. Termination.
B. Novation.
C. Cancellation.
D . 8et- off.
E. All.

17. is an irrelevant factor in determining the heir's

capacity to succeed the estate of the deceased.
A. The manner in which paternity is ascertained.
B. Age.
C. Sex.
D. Nationality.
E. All.

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18. Which one of the following is correct regarding classification of
things in the Ethiopian law?
A. Accessories are movable things by nature destined permanently for
economic utilization of only immovable things.
B. Immovable by destination is an immovable property destined
permanently for economic exploitation of another immovable thing.
C. Movable by anticipation is an immovable thing by nature subject to
a transaction that anticipates its removal and the law that governs
transactions involving such things is the one that is applicable to
movable things.
D. Accessories are intrinsic elements.
E. C & D.

19. Which one of the following statements is not true about joint and
several liabilities of co-debtors under the 1960 Civil Code of Ethiopia?
A. One of the co-debtors cannot validly refuse performance of the
contract though the creditor has the Uberty to proceed against the
co-debtors.
B. The creditor does have the right to claim the whole debt from one
of the co-debtors irrespective of the amount of share of the co-
debtors.
C. If the consent of any of the co-debtors was vitiated by any vice of
consent during the formation of the contract, any of the co-debtors
can raise such defense against the creditor.
D. All the co-debtors shall assume equal obligations towards the
creditor where they fail to determine their respective shares of
obligations in the contract.
E. A and C.

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20. Art.1714 (2) of the 1960 Civil Code of Ethiopia stipulates that the
court may not make a contract under the guise of interpretation [of the
contract}. Which one of the following inferences can validly be made from
this legal provision?
A. Ethiopian courts are prohibited to interpret contractual provisions
even if the provisions are vague, ambiguous or contradictory since it
is the contracting parties who have the power to determine the
contents of the contract.
B. Ethiopian courts are not prohibited from interpreting contracts where
interpretation is genuinely called for because " of ambiguity,
vagueness or contradiction of contractual provisions.
C. Contracts should come from interpretation where the parties have
not clearly defined their respective contractual rights and obligations.
D. All.
E. Band C.

21. The law governing ordinary movable things applies to:

A. Rights incorporated in all negotiable instruments.
B. Immovables by destination.
C. Movables by anticipation.
D. Rights incorporated in securities to bear.
E. C& D.

22. Which of the following is not true about debt of spouses?

A. Personal debt of the spouses may be paid from common property.
B. Personal debt of the spouses should be first recovered from
personal property of the indebted spouse.
C. Debts incurred in the interest of the house hold cannot be paid "from
personal property of spouses.
D. Debts incurred in order to ful."fill an obUgation of maintenance to
which one of the spouses is bound can be paid from common
property.
E. A & D.

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23. Which one of the following situations gives rise to judicial appointment
of a liquidator?
A . Where the testator left no heir.
B. Where all the heirs are unwilling to liquate the succession.
C. Where all the heirs renounce the succession.
D. Where the heirs are unknown.
E. All.

24. Which of the following concepts is unrelated to Ethiopian tort law?

A. Restitution.
B. Injunction.
C. Enforcement of parties' commitment.
D. Compensation.
E. None.

25. Which one is correct about Ethiopian property law?

A. It does not recognize ownership of incorporeal things.
B. Expropriation is allowed only with respect to immovable things.
C. Peasants do not have property interest in land.
D. Limitations to ownership are justified only on public interest
considerations.
E. None.

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 SECTION IV: WRITE SHORT ESSAYS FOR THE FOLLOWING
QUESTIONS IN NOT MORE THAN 10 LINES (200/0)

1. In relation to the difficulty and the importance of making judgment on

whether a cause of action in a suit is on contract or tort, an author
made the following statements:

".... The distinction in practice is less clear, as many fact situations

could give rise to an action in both contract (if there is a contract in
existence) and tort ... ln such cases, it [ ] becomes necessary to
decide whether to sue in contract or in tort.... Circumstances may
arise in which it is necessary for a claimant to decide whether to
base an action on tort or contract.. .. " [Vivienne Harpwood Principles
of Tort Law (4 th ed. 2000) p. 3]

Comment in light of the above statements whether or not it makes any

difference for a plaintiff in the Ethiopian legal system to base his claim on
contract law or extra-contractual liability law. (7%)
2. If and when the contract of marriage is concluded during marriage, it shall
be approved by the court. Why the law puts this condition for such
contract of marriage? Doesn't it contravene the contractual freedom of the
spouses? (7%)
3. Brie'fly explain the difference between patrimony and property. 6%)

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 SECTION II: MATCH THE ITEMS UNDER 'A' WITH THOSE
UNDER 'B' (10%, 1% EACH)

A B
1. Absolute impediment A. Age
2. Testator B. A situation in which the deceased
does not have heirs at all
3. Opposition to marriage C. A remedial strategy
• 4. Renunciation D. Alienation of the thing bequeathed
5. Escheat E. Arrears of maintenance allowance
6. Relative impediment F. A person who left no valid will
7. Express revocation G. Refusal to succeed
8. No accumulation H. Relation by consanguinity
9. Tacit revocation I. Willingness to succeed
10. Prohibitory impediment J. A person who left valid will
K. A preventive strategy
L. Common property
M. Registration of marriage
N. Making a contradictory will
O. Period of widowhood

SECTION III: ANSWER THE FOLLOWING QUESTIONS IN

NOT MORE THAN 4 LINES (15%)

1. What is the difference between condition precedent and condition

subsequent under the Civil Code of Ethiopia? (5%)

2. Briefly explain the difference between will and donation. (5%)

3. Briefly discuss the limitations to ownership right under the Ethiopian law.
(5%)

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 SECTION IV: WRITE SHORT ESSAYS FOR THE FOLLOWING
QUESTIONS IN NOT MORE THAN 10 LINES (200/0)

1. In relation to the difficulty and the importance of making judgment on

whether a cause of action in a suit is on contract or tort, an author
made the following statements:

".... The distinction in practice is less clear, as many fact situations

could give rise to an action in both contract (if there is a contract in
existence) and tort... ln such cases, it [ ] becomes necessary to
decide whether to sue in contract or in tort.... Circumstances may
arise in which it is necessary for a claimant to decide whether to
base an action on tort or contract. ... " [Vivienne Harpwood Principles
of Tort Law (4th ed. 2000) p. 3]

Comment in light of the above statements whether or not it makes any

difference for a plaintiff in the Ethiopian legal system to base his claim on
contract law or extra-contractual liability law. (7%)
2. If and when the contract of marriage is concluded during marriage, it shall
be approved by the court. Why the law puts this condition for such
contract of marriage? Doesn't it contravene the contractual freedom of the
spouses? (7%)
3. Briefly explain the difference between patrimony and property. 6%)

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 SECTION V: HYPOTHETICAL CASES (300/0)

HYPOTHETICAL CASE I
Ato Dagnachew Bekalu is a resident of Addis Ababa. In the recent past,
he engaged in giving tour and travel services to domestic as well as
international tourists who would travel to the different regions of Ethiopia.
To this end, he bought six Toyota Land Cruiser vehicles in 2010. He has
, also had a big shop at the heart of Dessie where he sells spare parts
and tires. Though his tour and travel business was fairty profitable, he
wanted to embark on mechanized agriculture since he had always had
the desire to contribute his part towards ensuring food security in Ethiopia.
On account of this, he determined to sell all of his vehicles. Accordingly,
he sold one of his vehicles to a man called Ato Temtime Gemeda whose
principal residence is Ambo.
The contract of sale of the vehicle was made in Addis Ababa, on the 8th
of October, 2013. The contract was concluded in writing and was attested
by two witnesses. In the contract, it was agreed that the whole price of
the vehicle was 1,200,000.00 Birr. It was also agreed that the buyer
would pay 50% of the total price of the car upon physical delivery of the
car and the remaining half of the price of the car would be paid when
transfer of title of ownership would be made from the seller to the buyer.
As per this contractual clause, the seller delivered th~ car and the buyer
paid the first half of the payment to the seller. Another contractual clause
stipulated that transfer of title of ownership of the car from the seller to
the buyer would be made within one month reckoned from the conclusion
of the contract. The seller did everything to make the transfer of title of
ownership of the car to the buyer and take the remaining amount of
money from the latter. As such, the seller informed the buyer repeatedly
that it was possible for the seller to transfer the title of ownership of the
car to the buyer.
However, the buyer remained involuntary to come to Addis Ababa for the
purpose of transfer of title of ownership of the car and take the title of
ownership of the car from the seller. He has not also paid the remaining
price of the vehicle. To the surprise of Ato Dagnachew, Ato Temtme sent
a letter, dated 23 April 2014, to Dagnacew in which the former made it
clear that he wanted to buy from the latter tires and spare parts. Ato
Temtime told Ato Dagnachew that the latter should respond to the letter
until May 10, 2014. However, Ato Dagnachew did not respond anything to
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the letter of Ato Temtime and did not send him the said spare parts and
tires. On account of this, Ato Temtime gave a default notice to Ato
Dagnachew, on the 28th of July, 2014, saying that unless the latter
del.ivered the afore-mentioned tires and spare parts, he would bring suit
against Ato Dagnachew.

Assuming that Ato Temtime has brought suit against Ato Dagnachew
Bekalu alleging that the latter has breached his contractual obligation (by
failing to deliver the spare parts and the tires indicated by the offer made
by Ato Temtime), what defense would you raise in - favor of Ato
Dagnachew? (15%)

HYPOTHETICAL CASE II

Asres, Bekele, Taye and Alem are four friends who want to do
construction business together. They wanted to form a PLC, but were not
happy about the disclosure requirements of PLCs. PLCs have to register
for VAT, and file so many reports every month. On the other hand, they
do not want to set up a partnership as they were afraid of the unlimited
liability. Thus, all, four, of them devised a mechanism whereby each of
two of them will set up shell PLCs and the two PLCs created will, in turn,
form a General Partnership. Hence, Asres and Bekele formed ASBEK
Consulting Business PLC, and Taye and Alem created TALEM Consulting
Business PLC. As was initially designed, ASBEK PLC and TALEM PLC
through their general managers concluded a partnership agreement to
form a general partnership with a firm name "ASBEK PLC & TALEM PLC
Construction Business General Partnership." Following this, when they
went to the Minister of Trade to complete business registration, the
registrar told them that their application is unique, and they should come
back after ten days to get the Ministry's decision as to whether or not
they can proceed.
Meanwhile, the registrar approached you to advise him, whether the
application can be accepted and the proposed general partnership can
legally be set up between two PLCs.
You are the expert and give the registrar your reasoned advice. (15%)

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