Effect of Formalities on the Enforcement of Insurance Contracts in Ethiopia
(LL.B, LL.M; Arbitration Tribunal Manager, Ethiopia Commodity Exchange; Part-time Lecturer at AAU Faculty of Law)
The problems addressed in this article are related to the functions, purposes, and effects of non-observance of legal formalities in contracts of insurance in Ethiopia. Failure to meet the formality requirements provided in the law entails nullity of a contract. However, this paper attempts to explore and examine the various perspectives of this proposition with regard to insurance contracts. To this end, the writer has reviewed literature, conducted extensive interviews and analyzed cases.
The first section deals with formalities in Ethiopian contract law in general, and makes a general overview in respect of all types of formal contracts. It attempts to show the broad social and institutional purposes and justifications of formalities beyond narrower immediate effects viewed in the context of individual cases and present needs. The last two sections are devoted to analysis of insurance formalities both in the law and in the practice.