Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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damages for delayed contractual performance under Iranian law

damages for delayed contractual performance under Iranian law

In the case of delay in the execution of the contract,, the date of the obligation and the time of the violation must first be determined. Then, the possibility of claiming damages for delayed contractual performance under Iranian law and the contract in terms of agreed contractual penalty daily, damages, extension of the deadline, Cairo power and the formalities of declaring the delay are examined.

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damages for delayed contractual performance under Iranian law

In the case of delay in the execution of the contract,, the date of the obligation and the time of the violation must first be determined. Then, the possibility of claiming damages for delayed contractual performance under Iranian law and the contract in terms of agreed contractual penalty daily, damages, extension of the deadline, Cairo power and the formalities of declaring the delay are examined.

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

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 damages for delayed contractual performance 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

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.

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–employer agreement and dispute under Iranian law

Subject matter, Status report, Delivery, Delay, Guarantee of good performance and disputes between the employer and the contractor.

  • 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 obligation date and the amount of delay are determined. Then it must be seen whether the contract specifies agreed contractual penalty for delay or whether a claim for damages is based on general rules and proof of loss.
damages for delayed contractual performance under Iranian law It can be related to the late performance of a contractual act such as delivery or performance of work; late payment damages are mainly related to the delay in payment of a monetary debt.
The absence of agreed contractual penalty does not necessarily mean that there is no possibility of claiming damages; but the basis of liability, the loss, its relationship with the violation and other legal conditions must be proven and examined.

Methods of contact

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

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