The Recoverability of Losses Due to Decrease in Price Value in the Case of Termination of Contract

Tahmasebi, Ali; Shirazi, Ali

doi:10.30497/law.2019.2547

The Recoverability of Losses Due to Decrease in Price Value in the Case of Termination of Contract

Document Type : Research Article

Authors

Ali Tahmasebi ¹
Ali Shirazi ²

¹ Assistant Professor, Department of Law, Razi University, Kermanshah, Iran

² M.S Student, Private Law, Razi University, Kermanshah, Iran.

10.30497/law.2019.2547

Abstract

There is no doubt that contract law is one of the important foundations of economic system and efficiency and being up-to-date of its rules can have a major role on economic growth. So foreseeing suitable remedies for breach of contract is very important and it can be said that it is a fundamental factor in evaluating the efficiency of contract law. The paper analyses one of the major defects of Iranian contract law. It should be noted The Supreme Court in decree number 733 provided a solution for how to compensate buyer’s losses in an unauthorized transaction. Alongside with uncertainty and doubt that exists about the accepted standard in the decree and its restorative ability in these cases, the possibility of the application of the standard in other cases of dissolution of contract; specifically termination is an important question that giving an answer to it, is very necessary considered with practical aspects. In this survey, it has been proposed that the application of the decree in all causes of contract dissolution is rational and reasonable on the understanding that it has the same base in common with unauthorized transactions and in fact, the buyer has been deceived

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