Another disastrous wrong”: lawyers
By Namrud Berhane, The Reporter
A draft proclamation is being considered by Parliament to amend the Civil Code, particularly Article 1723, which deals with contracts relating to immovable property.
The move comes after a controversial ruling by the Cassation Bench of the Federal Supreme Court, newly establishing a precedent that is binding on all courts of the country. According to the ruling, contract of sales of an immovable property can only be valid if both requirements as to writing and registration before a court or a notary are satisfied.
According to Article 1723 of the Civil Code, a contract creating or assigning the rights to ownership of an immovable property is not valid unless it is in written form, and has been registered with a court or notary.
A ruling by the Supreme Court in April 2007 became landmark and set a precedent in that it invalidated a sales contract of an immovable property on grounds that it was a mere draft as it had not comply with the above specified provision.
And according to Proclamation 454/2005 article 2(1), “Interpretation of the law by the Federal Supreme Court rendered by the cassation division with not less than five judges shall be binding on federal as well as regional council [courts] at all levels. The cassation division may however render a different interpretation some other time.” The rest here.
