Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
Consultation
Right-to-terminate clauses and automatic-termination clauses

Right-to-terminate clauses and automatic-termination clauses

A clause granting a right to terminate usually allows a party to end the contract in specified circumstances. An automatic-termination clause instead provides for the agreed event to end the contract without a fresh exercise of choice.

Request a consultation

Right-to-terminate clauses and automatic-termination clauses

A clause granting a right to terminate usually allows a party to end the contract in specified circumstances. An automatic-termination clause instead provides for the agreed event to end the contract without a fresh exercise of choice.

Practical point: The wording of the contract must be examined very carefully; because the colloquial use of these terms does not always correspond to the legal effect intended by the parties.

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 contractual termination right and automatic termination clause 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

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.

Contract interpretation and disputes over terms

Analysing ambiguous clauses, the relationship between terms and their legal effects.

Judicial invalidation and nullity of contracts

Reviewing missing conditions for validity and distinguishing nullity from termination, automatic termination and termination by mutual agreement (eqāleh).

  • 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 termination clause gives the designated party or person the authority to terminate the contract if the stipulated conditions are met. The limits of the authority, the time and method of application must be specified in the text of the contract.
An automatic-termination clause ends the contract when the stipulated event occurs. A clause granting a termination right requires its holder to exercise that right. The exact wording is decisive.
Identify from the contract and governing rules the conditions for the right to arise, its time limit, any required notice, reciprocal obligations and post-termination effects.

Methods of contact

For legal advice or follow-up on a case, contact us using one of the methods below.

Telegram@rakideh_lawyer WhatsApp09122023686 InstagramVakil.fatemeh.rakideh Contact09122023686

Choose how to contact us

Choose one of the contact methods below.

Phone callWhatsAppTelegramEmail