Regulation Of Electronic Contract Under New Ethiopian Electronic Transaction Proclamation No. 12052020

The use of electronic communications improves the efficiency of commercial activities. It plays a fundamental role in promoting trade and economic development by enhancing the opportunities to access markets beyond geographical barrier. Like any other transaction contract is indispensable in the process of electronic commercial transaction. Hence, the impact (i.e. positive and negative) of technology in the business inevitably extends to a contract. Recently Ethiopia has promulgated Electronic Transaction Proclamation No.1205/2020 that recognizes validity and enforceability of e-contract under the auspices of functional equivalence approach, which presupposes existence of equivalent conventional contract rules. As a result, the operation of e-contract rules depend on existence of equivalent conventional contract rules that defines the functions of written document on secondary position. However, now days a sophistication of ICT is quite beyond the functions of conventional contracts even previous technology. Thus, current electronic transaction law has to recognize unique nature of e-contract (i.e. ubiquity, distance, virtuality (immateriality), speed and the involvement of electronic agent (EA hereinafter) that is not contemplated in the conventional contract rules to effectively regulate it.

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