Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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Arbitration and dispute resolution in contracts

Arbitration and dispute resolution in contracts

A dispute-resolution clause should not be added at the end merely as a formality. Choosing court proceedings, arbitration or a multi-stage mechanism can directly affect cost, duration and procedure.

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Arbitration and dispute resolution in contracts

A dispute-resolution clause should not be added at the end merely as a formality. Choosing court proceedings, arbitration or a multi-stage mechanism can directly affect cost, duration and procedure.

Practical point: An arbitration clause should identify, as clearly as possible, the disputes covered, the appointment method, the time allowed for arbitration and how an arbitrator may be replaced.

Important points in contract review

Point 1

The complete contract, addenda and relevant clauses

Point 2

When the obligation arose, its due date and evidence of performance or non-performance

Point 3

Correspondence, messages, formal legal notices, payment receipts, and delivery documents

Point 4

Security, agreed sums for breach, termination rights and dispute-resolution clauses

Legal review of documents and disputes related to arbitration and dispute resolution in contracts

Importance of a careful contract review

Choose the legal characterisation from the actual contract and evidence. Similar-looking cases may require different solutions, particularly for termination, nullity, compelling performance and damages.

Related topics

Contract interpretation and disputes over terms

Analysing ambiguous clauses, the relationship between terms and their legal effects.

Contractor agreements

Scope of work, payment applications for completed work, handover, delay, performance security and disputes between the client and contractor.

partnership and investment agreement under Iranian law

Contributions, ownership interests, management, profit and loss, reporting, security and exit arrangements.

  • Iranian Civil Code («قانون مدنی»)

  • Iranian Code of Civil Procedure («قانون آیین دادرسی دادگاه‌های عمومی و انقلاب در امور مدنی»)

  • Iranian International Commercial Arbitration Act («قانون داوری تجاری بین‌المللی»)

This list identifies the principal legal provisions relevant to the page. The applicable law and amendments must be checked against the dates, subject matter and circumstances of each case.

The official texts and latest amendments are available in the National Database of Iranian Laws and Regulations.

Frequently asked questions

An arbitration clause is an agreement that refers all or part of a dispute to one or more arbitrators. The subject of the dispute, the method for appointing the arbitrator, the time period, and the limits of authority must be clear.
The way to proceed depends on the text of the arbitration clause and the governing regulations. In some cases, there is a legal mechanism for appointing or replacing the arbitrator, and the contract must be carefully examined.
There is no single answer. The contract type, technical complexity, cost, speed, enforceability of the resulting judgment or award and need for urgent measures determine the more suitable mechanism.

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