Effects and consequences of termination of contract in Iranian law

Mohammad Reza Marandi, Payman Homayonnia


Contract termination due to the options, is one of the sanctions that dealers can refer to it to get out of the contract and the obligations arising from it and as it is considered one of the causes of the fall of the obligations. Methodology: Contract termination will have certainly effects. In Iranian civil law, there are no articles or topics that explicitly express termination effects, but due to sporadic and transient discussions in law, it can be considered two major effects for termination relating to the effects of termination: 1. The dissolution of contract, 2. The possibility of demand compensation in the case of contract termination and 3. Extradition of considerations. Results: In general, what is important in the dissolution of contact, which is considered as the first effect of termination is,  knowing the time of dissolution of contract, impact or non- impact of it on the possessions prior to termination and future commitments of the dealers; there is this general rule in Iranian law in the part of claim for damage in the case of termination of the contract that If damage occurs to covenantee  in the case of not doing commitment, he can demand it from covenantee  and in the discussion of extradition of considerations to their owners that is the third effect of termination, it is investigated to how extradition of considerations and benefits of it in types of possessions of dealers, prior to termination. Conclusion: Termination in words means violating, undermining, and destroying and breaking and it is also called the voluntary dissolution of contract. Termination in legal term is the legal terminating of contract by one of the parties or a third party. Termination or voluntary dissolution of the contract in terms of legal status is including subjects of obligations fall and contracts and it will be discussed in the general rules of contracts.


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DOI: https://doi.org/10.24200/jsshr.vol7iss02pp22-25


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