Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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termination or rescission of a valid contract under Iranian law

termination or rescission of a valid contract under Iranian law

termination or rescission of a valid contract under Iranian law It arises when the contract is valid but one of the parties has the authority to break it based on a legal right or a contractual condition. The existence of a breach alone does not always mean that there is a right to terminate and the origin of this right must be established in the law or the contract.

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termination or rescission of a valid contract under Iranian law

termination or rescission of a valid contract under Iranian law It arises when the contract is valid but one of the parties has the authority to break it based on a legal right or a contractual condition. The existence of a breach alone does not always mean that there is a right to terminate and the origin of this right must be established in the law or the contract.

Practical point: Before announcing the termination, the text of the contract, the conditions for termination, deadlines, correspondence and the manner of implementation of the obligations should be reviewed. Incorrectly announcing the termination can itself be the source of a new dispute.

Important points in contract review

Point 1

Full text of the contract, Related annexes and conditions

Point 2

Date of creation of the obligation, Deadline for execution and documents of its fulfillment or non-fulfillment

Point 3

Correspondence, Messages, Statements, Payment Receipts and Delivery Documents

Point 4

Guarantees, agreed contractual penalty, Termination clause or dispute resolution clause

Legal review of documents and disputes related to termination or rescission of a valid contract under Iranian law

Importance of a careful contract review

The legal title of the dispute must be selected based on the actual text of the contract and documents. The apparent similarity of two cases does not mean that their solution is the same; especially in matters such as termination,, invalidity, of the obligation to fulfill an obligation and claiming damages.

Related topics

contractual termination right and automatic termination clause under Iranian law

The difference between a right termination or rescission of a valid contract under Iranian law and a condition that, if fulfilled, dissolves the contract.

Compelling performance of contractual obligations

Follow up on the implementation of an obligation that has become due and the obligor has refused to perform it.

Claiming an agreed contractual penalty and contractual damages

Review the condition agreed contractual penalty, breach of contract and the possibility of claiming damages based on the contract.

invalidity or nullity of a contract under Iranian law

Checking the absence of conditions for the validity of the transaction and the difference between nullity and termination, automatic termination by operation of law and termination by mutual consent (eqāleh).

  • Iranian Civil Code («قانون مدنی»)

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

This list, shows the main provisions related to the subject of the page. The governing law and subsequent amendments must be adapted to the time of occurrence, of the subject and the situation of each case.

The official text and latest amendments of the laws are available at National Information Database of Laws and Regulations of the Country is available to view.

Frequently asked questions

First, the existence of the right to terminate in the law or contract,, the deadline and the method of its application must be examined. The announcement of termination must also be made in a way that can be proven and in the event of a dispute,, confirmation of the termination and subsequent effects may be raised with the competent authority.
Failure to perform an obligation alone does not always create a right to terminate. There must be a termination clause, a legal option or another basis for terminating the contract and the text of the contract and the type of violation must be carefully examined.
Termination usually concerns a valid contract and the right to disrupt it; invalidity relates to the absence of essential conditions for the validity of the contract. The choice of the right title depends on the text of the contract and the actual circumstances of the case.

Methods of contact

Contact us for advice and follow-up of the case through the following ways

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