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 economicimpact of the pandemic.
Although these emergency measures were swift, as time went, they remain short lived due to
various reasons. Businesses are forced, inter alia, to cut back production and service delivery,
lay off employees temporally, 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 COVID-19
pandemic on the performance contractual obligations and shows the legal relief adopted in
Ethiopian law to escape the liabilities of resulted damage. To that effect, the article employs
doctrinal research method and hence, assesses domestic laws, books, journal articles, web
information, and foreign jurisprudences. 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.
Keywords: Contractual obligations, COVID-19, Force majeure, Variation of contracts
