Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
Consultation
Compelling performance of contractual obligations

Compelling performance of contractual obligations

The binding nature of contracts requires parties to perform the obligations they undertake. Where a defined obligation is due and capable of performance but the obligor refuses to perform, non-performance arises and a claim compelling contractual performance may be appropriate.

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Compelling performance of contractual obligations

The binding nature of contracts requires parties to perform the obligations they undertake. Where a defined obligation is due and capable of performance but the obligor refuses to perform, non-performance arises and a claim compelling contractual performance may be appropriate.

Practical point: The nature of the obligation, its due date, conditions precedent, performance of reciprocal obligations, formal legal notices, and the practical feasibility of performance are decisive considerations.

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 the obligation to fulfill contractual obligations

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

Claiming agreed sums for breach and contractual damages

Reviewing the agreed-sum clause, breach and availability of contractual damages.

Damages for delayed performance of a contractual obligation

Review of the effects of delay, the due date of the obligation, proof of breach, and contractual or statutory remedies.

Contract termination (faskh)

Review of the right to terminate, statutory grounds for termination (khiyārāt), contractual terms, the method of giving notice of termination, and its effects.

Contractor agreements

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

  • Iranian Civil Code («قانون مدنی»)

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

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

First, the contract text, the subject and due date of the obligation, correspondence, and evidence of non-performance are reviewed. Depending on the circumstances, a demand for performance, a formal legal notice, a claim for damages, or an action to compel performance may be considered.
The contract and its annexes, evidence of payment or performance of reciprocal obligations, correspondence and messages, a formal legal notice, and any document showing the existence and due date of the obligation are usually important.
Combining claims depends on the contract, type of loss and legal basis. In particular, determine whether the agreed sum was stipulated for delay or non-performance.

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