Damages and Termination of Contract; A Review of Iran and Egypt Law Approach with a Look at Islamic Jurisprudence and Judicial Decisions

Abstract

In this essay it has been studied that from the point of view of Iranian and Egyptian law and Islamic jurisprudence and with an analytical-descriptive method, on what basis and under what circumstances, arises the breach of the contract creates a right to compensation and the right of termination. In Egyptian law, after breaching an obligation, the oblige is free to keep the contract and receive damages or terminate it, while in Iranian law and Islamic jurisprudence, the first right available is the obligation of the obligor to fulfill his obligation. In Iranian law and Islamic jurisprudence, the right to terminate an agreement is the result of the failure of specific performance, not a confrontation of obligations or a fundamental breach. It is based on the rules of Tort, not breach of contract. Also, in Egyptian law, contrary to Iranian law and Islamic jurisprudence, one of the conditions for claiming damages or terminating a contract is to send a notice to the obligor to fulfill the obligation. Against Article 230 Iranian civil code, regarding on agreement on damages in Egyptian legal system courts have authority to adjust the agreed amount. . . . . . . . . . .

Keywords

• damages
• termination of contract
• egypt
• iran
• breach of contract