The Social Sciences
ISSN: Online 1993-6125ISSN: Print 1818-5800
Abstract
Each person enters into transaction or into contracts with others in his or her everyday life. A contract is valid if it is concluded according to legal criteria. A contract made in breach of a legal criterion is null and void. Contract can be defined as “an agreement between two or more parties that is binding by law”. The purpose of the study is to identify legal system and principles of contract law in Iran. The principles of contract law in Iran include binding nature of contract, principle of freedom of contract, principle of validity of contract, principle of privity of contract, rule of custom, basic condition of validity of transaction, implied condition of contract, discharge of contract and damages. Besides, basic conditions for a contract to be valid are intention and consent, capacity, specificity of object of transaction and legitimacy of cause of transaction. In this study, principle of contract law and conditions for validity of transactions in Iran are taken into consideration and its nature and its effects have been surveyed. According to Article 264 Civil Code of Iran, obligations can be discharged by one of the following ways namely fulfillment of obligation, cancellation of bargain, release from obligation, substitution of obligation, offset and recoupment and acquisition of debt. At the end in addition to enumerating the implied conditions of contract, the damages of contract will be analyzed. This research study is of library type and the descriptive methodology has been used.
How to cite this article:
Suzanna Mohamed Isa, Sakina Shaik Ahmad Yusoff, Mehdi Pirhaji and Mahmoud Jalali. Principles of Contract Law in Iran.
DOI: https://doi.org/10.36478/sscience.2013.454.460
URL: https://www.makhillpublications.co/view-article/1818-5800/sscience.2013.454.460