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Table of Contents

Unit One : General Introduction to Conflicts…………………………..………………...........1


1.1. Nomenclature…………………………………………………….…………………..........1
1.2. Definition and Analysis………………..………………………………………………….2
1.3. Nature……………...…………………………………………………….………………...3
1.4. Scope………………………………………………………………………….…………...5
1.5. Raison d’être……………….………………………………………………………….......8
1.6. Functions……………………………………………………………………….………….9
1.7. Development of Conflicts Theories: General…………………...……………………….13
1.8. Conflict of Laws In Ethiopia……………………………………………………….……23
1.9. Summary…………………………………………………………………..……………..29
1.10.Discussion Questions...…………………………………………………………………..30
2. Unit two: Adjudicatory/Judicial Jurisdiction.....................................................................31
2.1. Meaning……………………………………………………………………………...…..31
2.2. Theories or Bases of Jurisdiction………………………………...……………………....33
2.2.1. The Territorial Power or Power or Territorial Theory………………………………34
2.2.2. The Minimum Contact Theory……………………………….……………………..35
2.2.3. The Fairness Theory………………………………………….……………………..36
2.2.4. Domicile, Residence, Nationality as a Basis of Judicial Jurisdiction……………….38
2.2.5. Jurisdiction Based on onsent/Submission……………………………….……….…40
2.3. General and Special Jurisdiction………………………………………………………....45
2.4. Exclusive Jurisdiction………………………………………..…………………………..46
2.5. State and Federal Courts’ urisdiction…………………………………………………....47
2.6. Interstate Choice of Jurisdiction………………………………..………………………..56
2.7. Jurisdiction Related Basic Constitutional Guarantees……………………………..…….58
2.8. Suits Between Permanent Residents of Different States………………………………...59
2.9. Limitations on the Exercise of Judicial Jurisdiction…………………………..…………61
2.10.Choice of Jurisdiction Vis-avis Choice of Law………………………………………….73
2.11.Judicial Jurisdiction in Ethiopia………………………….…….……………………...…75
2.12.Summary…………………...………………………………………...…………………..96
2.13.Discussion Questions………………………………………………………………….....97

I
3. Unit Three: Choice of Law………………………………………………..……………....98
3.1. Methods……………………………………...……………………….…………………98
3.2. The General Part of Choice of law Process…………………………………………….101
3.2.1. Characterization……………………………………………………………………101
3.2.2. Renvoi………………………………………………….…………………………..107
3.2.3. Public Policy and rules of Immediate application…………………………...…….111
3.2.4. The Incidental Question………………………………………..…………………..114
3.2.5. Foreign Law: Status, Notice and Proof…………………………………………….116
3.2.6. Evasion/Fraud…………………………………..………………………………….119
3.3. Choice of Law Process and Interstate Relations: US v. Ethiopia....................................122
3.4. Summary……………………………………………………..…………………………126
3.5. Discussion Questions……………………………………………………...……………127
4. Unit Four: Recognition and Enforcement of Foreign Judgments and Arbitral
awards...................................................................................................................................128
4.1. Introduction………………………………….……………………….…………………128
4.2. Analysis of the Law…………………………………………………………………….130
4.3. Modes of Execution of Foreign judgments……………………………………………..131
4.4. The Case of Arbitral awards……………………………………………………………147
4.5. Summary………………………………………………………..………………………171
4.6. Discussion Questions……………………………………………...……………………171
Part II: Application of Conflict of Laws in Special Area of Laws………………………….172
5. Unit Five: Contractual Obligations…………………………………………………...….173
5.1. Introduction……………………………………………..………………………………173
5.2. Choice of Applicable Law in Contract………………………………………………....174
5.2.1. Doctrine of the Proper law of Contract………………………………………….…175
5.2.2. The proper Law of the Contract in the Ethiopian Conflict of Law………………..203
5.2.3. Particular Aspects of the Contract…………………………………………………208
5.3. Protected Contracts……………………………………………………………………..216
5.4. Rules under Federal Draft Conflict of Laws……………………………………………225
5.5. Summary………………………………………………………………………………..237
5.6. Review Questions………………………………………………………………………239
6. Unit six: Non – Contractual Obligations……………………………………………..….243
6.1. Introduction………………………………………...…………………………………..243
6.2. The Main Rules Governing Choice of Law in Tort…………………………………….244

II
6.2.1. The Choice of Law in Tort : the US Approach Under the Second Restatement…..245
6.2.2. The Approach Under Rome II Proposal…………………………………………...249

6.3. Rules Governing Choice of Law Under the Federal Draft Conflict of Laws ………….260
6.4. Particular Torts………………………………………………………………………....262
6.4.1. Personal Injuries and Damage to Property………………………………………...262
6.4.2. Unfair Competition……………………………………………..………………….262
6.4.3. Product Liability………………………………………………………………...…270
6.4.4. Defamation…………………………………………..…………………...………..273
6.5. Summary………………………………………………………………………………..280
6.6. Review Question……………………………………………………….………………283
7. Unit Seven: Property (Interstate and International)…………………………………....286
7.1. Introduction……………………………………………….…………….………………287
7.2. General Rules Governing Choice of Law in Property………………………………….287
7.3. Particular Rules Governing Dealings With Movable and Immovable…………………290
7.3.1. Conveyances………………………………….……………………………………291
7.3.2. Encumbrances ……………………………………………………………………..302
7.4. Choice of Law Rules Governing Succession on Death………………………………...309
7.4.1. Succession to Movables………………………………………………………..…..309
7.4.2. Succession to Immovable………………………………………………...……….317
7.5. Rules Governing Choice of Law in Property Under the Federal Conflict of Law……..328
7.6. Summary……………………………………………………..…………………………332
7.7. Review Questions………………………………………………………………………336
8. Unit Eight: Status…………………………………………………………………………340
8.1. General Introduction on Status…………………………………………………………340
8.2. Law of Marriage………………………………………………………………………..345
8.2.1. Introduction………………………………………………………………………..345
8.2.2. Formal Validity……………………………………………………………………345
8.2.3. Essential Validity …………………………………………………………………347
8.2.4. Characterization as to formal and Essential Validity……………………………...363
8.2.5. Policy as to Marriage………………………………………………………………364
8.2.6. Effects of Marriage…………………………………………………………...……366
8.3. Law of Divorce…………………………………………………………………………370
8.4. Summary………………………………………………………………………………..375
8.5. Review Questions………………………………………………………………………376

III
9. Unit Nine: Agency, Partnerships and Companies………………………………………379
9.1. General Introduction……………………………………………………………………379
9.2. Agency………………………………………………………………………………….379
9.2.1. Relation ship of the Principal and Agent…………………………………………..379
9.2.2. Contractual Liability of Principal to Third Person………………………………...384
9.2.3. Ratification by Principal of Agent’s Act…………………………………………..387
9.3. Partnerships……………………………………………………………………………..389
9.3.1. Relationship of Partners Inter se…………………………………………………...389
9.3.2. Contractual Liability of Partnership, Partners and Third Person…………………..390
9.4. Companies………………………………………………………………………………393
9.4.1. Creation, Recognition and Dissolution…………………………………………….393
9.4.2. Corporate Powers and Liabilities…………………………………………………..400
9.5. Summary ……………………………………………………………………………….404
9.6. Review Questions……………………………………………………………………....405
References……………………………………………………………………………………...407

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