Judicial Law Views Quarterly (Law Views)

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In onerous contracts, if one of the parties does not fulfill his main obligations, the jurists of the Imamiyah and Iranian law, by same criteria as provisions of the condition about performance of an act, state that the aggrieved party must bring an action to enforce the other party to fulfill his obligations and, if it is not possible, someone else undertakes an obligation at a committed cost. Finally, if non of this is not possible the aggrieved party can terminate the contract. this theory is not consistent with parties contractual purposes and the logic of commercial contracts.Therefore, in most countries, such as Britain, the US, and international legal instruments, when breach of contract committed by one of the parties is fundamental, it would give rise to the right of termination.
Although, jurists do not consider the possibility of termination, but regard challenges of specific performance, the requirements of new commercial transactions and the relations between merchants and, persuasive argument of some great jurists, we can believe in right to termination for aggrieved party in occasion of fundamental breach of contract in Iranian law based on logical consistent usages, principle of prohibition of causing a loss etc.

Keywords: Obligatons, Conditions, Warranty, Fundamental Breach, Termination, Remedies

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