Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
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Claiming agreed sums for breach and contractual damages

Claiming agreed sums for breach and contractual damages

An agreed sum for breach is an amount or damages formula stipulated for breach or delay. Its effect depends on the precise clause and the particular breach it addresses.

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Claiming agreed sums for breach and contractual damages

An agreed sum for breach is an amount or damages formula stipulated for breach or delay. Its effect depends on the precise clause and the particular breach it addresses.

Practical point: An agreed payment for breach does not necessarily create a right to walk away from the contract. The wording must show whether it addresses delay, non-performance or an agreed right to withdraw.

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 concerning agreed sums for breach and contractual damages

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

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.

Damages for delayed performance of a contractual obligation

Review of the effects of delay, the due date of the obligation, proof of breach, and contractual or statutory remedies.

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.

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

An agreed sum for breach is an amount or damages formula stipulated for breach or delay in performing an obligation. A claim requires review of the clause, particular breach, due date and other contract conditions.
An agreed sum may be stipulated for delay and called a late-performance charge in everyday language. It may also be stipulated for non-performance or another breach.
This depends on the type of agreed sum and the precise clause. A sum stipulated for delay may be claimed with performance of the main obligation. For a sum stipulated for non-performance, the wording and parties’ intention require careful review.

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