Bases and Nature of Termination of Contract for convenience of Employer in International Investment Contracts (Comparative Study of US and Iranian Law)

Abstract

In international investment agreements that a government enters into with foreign investors, the investee government may terminate the agreement between itself and the foreign investor unilaterally for reasons such as safeguarding its interests. Termination of the contract for convenience expediently refers to an institution in which the employer and investee government terminates its contractual relationship with the contractor, in whole or in part, before the expiration of the contract, in order to protect its interests. Research Method The present research is descriptive-analytical in terms of the method of collecting library methodological materials. Items such as the public interest, the implicit condition, the theory of effective breach, and the elimination of the purpose of the contract are among the principles set forth in U.S. law for the unilateral termination of the contract for convenience of the employer. Also in Iranian law, issues such as the public interest, the limits of the authority of the Supreme Leader are among the principles mentioned for this issue. Termination of the contract for convenience is expedient in terms of the nature of the contract, and it seems that its more precise nature, depending on its basis, can be a conditional option and even termination. In American law, in addition to the fact that the termination of the contract for convenience expediently can be terminated on the basis of an explicit or implicit condition of the contract, failure to comply with the terms of this right can be considered a breach of contract.

Keywords

• termination of the contract
• convenience of the employer
• public interest
• international investment contract
• state