Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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Damages for delayed performance of a contractual obligation

Damages for delayed performance of a contractual obligation

For delayed performance, first identify the due date and when breach occurred. Assess delay damages against any daily agreed sum, other damages, extensions of time, force majeure and required notice of delay.

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Damages for delayed performance of a contractual obligation

For delayed performance, first identify the due date and when breach occurred. Assess delay damages against any daily agreed sum, other damages, extensions of time, force majeure and required notice of delay.

Practical point: It is important to distinguish between damages for delay in fulfilling a non-monetary obligation and damages for delay in paying a monetary debt, and their legal basis is not the same.

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 damages for delayed contractual performance under Iranian law

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.

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.

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 establish the due date and length of delay. Then determine whether the contract sets an agreed sum for delay or whether damages must be claimed under general rules with proof of loss.
Damages for delayed contractual performance may concern an act such as delivery or completion of work. Late-payment damages principally concern delay in paying a monetary debt.
The absence of an agreed sum for breach does not necessarily prevent a damages claim. The basis of liability, loss, causal link to the breach and other statutory requirements must still be established and assessed.

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