Damages for Breach of Contract in German Legal System with a review on Iranian Law

Abstract

Remedies for breach of contractual obligations are among the most critical areas of contract law in every legal system. In German contract law, the right to receive specific performance is the first obligation of the debtor. If a debtor fails to do this obligation, the creditor has the right to claim compensation for the loss. Reviewing the conditions for a claim for damages shows that the notion of fault is still essential in the new German Civil Code. Causation and the predictability of loss, are some other notable rules for a claim for damages. The possibility of a claim for different contractual damages categorized by nature in this study includes damage to property, personal injury, consequential damages, expectation interests, reliance interests, the loss of opportunity, and the moral damages. The classification of Damages by cause includes Damages in lieu of performance, damages for delay in performance, and the simple damages that have great importance in the new German Civil Code. In this article, the claim for contractual damages and different types of damages also has been taking into account from the German legal precedent viewpoint. Since the use of legislative and judicial experience of the German legal system can identify gaps in the Iranian contract law, in various sections of the article, the comparison of these two legal systems has been considered in an analytical-descriptive manner.

Keywords

• contractual damages
• breach of contract
• german law
• iran law