Contract interpretation and disputes over terms
Many disputes arise from ambiguous wording, conflicting clauses or lack of definition of terms. The interpretation of a contract is not done by reading a clause alone and the totality of the provisions and circumstances of the contractual relationship must be examined.
Request a consultationContract interpretation and disputes over terms
Many disputes arise from ambiguous wording, conflicting clauses or lack of definition of terms. The interpretation of a contract is not done by reading a clause alone and the totality of the provisions and circumstances of the contractual relationship must be examined.
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
Importance of a careful contract review
If there is ambiguity in the contract or a discrepancy in the terms and conditions of the contract, the interpretation of the contract should be based on the actual text of the agreement, the relationship of the terms, the documents and the manner of performance by the parties. The apparent similarity of two cases does not mean that the interpretation result is the same.
Related topics
Right-to-terminate clauses and automatic-termination clauses
The difference between a contractual right of termination and a condition that terminates the contract upon its occurrence.
Arbitration and dispute resolution in contracts
Validity of the arbitration clause, the arbitrator’s powers and selection of the appropriate contractual dispute-resolution mechanism.
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.
Relevant legal sources
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
Methods of contact
For legal advice or follow-up on a case, contact us using one of the methods below.