Abstract I will not violate my covenant or alter the word that went forth from my lips. Psalm 89: 34 Contract law exists since the time immemorial. Our life is full of promises. In Ethiopia, there is a saying that ‘‘it is better to lose one’s son than breaking promises’’. This shows promises which are the basis of contractual agreements have attained idiomatic status. So, the existence of informal agreements is a reality, and their enforcement is backed by societal norms, at the very least. In similar fashion, modern agreements have been recognized since the 1960s. The civil code of Ethiopia has a general contract and special contracts sections that give effect to formal commitments. Additionally, the Commercial Code, maritime Code and other proclamations regulate specific contractual relations. As stated above, though Ethiopia has a codified civil and commercial code which has a part on contract formation, it has been almost six decades since it took effect. These codes may regulate our contractual relationships when we buy or sell foods and drinks, buy or sell tickets; employ personnel as a laborer, researcher, professor, designer or driver; get our shoes brushed and buffed with polish; give or receive consultation services; buy and sell shares and stocks…etc., in the offline world. However, in recent years an increasing number of transactions in international trade are carried out by means of electronic data interchange and other means of communication, commonly referred to as “electronic commerce”, which involve the use of alternatives to paper-based methods of communication and storage of information. As the volume of electronic contracting continues to increase rapidly, legislatures around the world are evaluating existing contract law doctrines in light of new business practices . This is because we are seeing contracts on emails, web portals, other electronic devices, and electronic data interchange? we also want to sign electronically and want to avoid physical(place) and time barriers. The question, then is, does Ethiopia take part in this alarmingly increasing electronic transaction. If yes, does it have a legal framework to address and guide the smooth functioning of commercial dealings? No doubt, these days data messages and electronic communications could not be addressed by 60 years old Codes. The purpose of this paper is very modest. It sifts out one aspect of commercial transactions centering its main focus on contract formation. Accordingly, the paper appreciates the existing contract formation in Ethiopia and its place in the newly emerging electronic communications. Finally, after a thorough examination of contract formation in the offline and virtual world, I put forward recommendations.