Summary

The Ethiopian Commercial Code of 1960 is a comprehensive legal framework governing commercial activities in Ethiopia. It was enacted to provide a clear and consistent set of rules for business operations, enhancing legal certainty and promoting economic development. The code covers a broad range of commercial matters, including contracts, trade practices, business organizations, and insolvency. It sets out the rights and obligations of merchants, delineates various types of business entities like partnerships and companies, and specifies procedures for their formation, management, and dissolution. Additionally, the code addresses issues related to commercial instruments, such as negotiable instruments, and regulates securities and banking activities. It also provides guidelines for resolving commercial disputes and outlines the role of courts and arbitration in these processes. The 1960 code has been instrumental in shaping Ethiopia’s commercial landscape, supporting both local and international trade. Despite its age, the code remains a cornerstone of Ethiopian commercial law, although it has been subject to amendments to reflect changing economic conditions and modern business practices. Overall, the Ethiopian Commercial Code of 1960 continues to play a crucial role in fostering a stable and predictable business environment in the country.