Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
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sale and purchase agreement under Iranian law

sale and purchase agreement under Iranian law

A sale contract must clearly state the subject matter of the sale, price, payment method, time and place of delivery, characteristics of the subject matter, and remedies for breach.

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sale and purchase agreement under Iranian law

A sale contract must clearly state the subject matter of the sale, price, payment method, time and place of delivery, characteristics of the subject matter, and remedies for breach.

Practical point: In important transactions, it is necessary to establish the seller's ownership or authority and to examine the legal or contractual restrictions before paying the main part of the price.

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 sale and purchase agreement under Iranian law

Importance of a careful contract review

A sale dispute may concern the price or its non-payment, failure to deliver what was sold, security or termination. The seller’s and buyer’s obligations and due dates must be assessed against the contract and payment and delivery records.

Related topics

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.

Claiming agreed sums for breach and contractual damages

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

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.

  • 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

The delivery obligation, due date, payment terms and contractual security must be reviewed. Depending on the circumstances, compelling delivery, claiming damages or exercising a right to terminate may be considered.
The payment date and method, security, cheques or other payment documents, and termination or damages clauses must be reviewed to identify the route for claiming the price, damages or other contractual rights.
The parties’ identity and authority, ownership or authority to sell, subject matter, payment amount and timing, delivery, security, termination and dispute resolution must be clear and capable of proof.

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