The Effects of Different kinds of Contract Breach on Remedies with Emphasis on International Instruments

Abstract

A breach of an obligation is the requirement for imposing a contractual liability in all legal systems. Such a breach could be dealt with by a series of remedies such as specific performance, termination of the contract and claim for damages. These remedies could be relied upon concurrently as far as they are cumulative in nature. Nevertheless, in some circumstances the adequacy of these remedies is in doubt to address such breaches and bad faith. In order to deal with such situations, some international instruments such as UNIDROIT Principles of International Commercial Contracts (UPICC), the Principles of European Contract Law (PECL) and also the Draft Common Frame of Reference (DCFR) have established some specific rules and imposed different and greater liability for breaching contractual obligations or bad faith in order to support the other party and have a deterrent role. In other words, the aggrieved party is not limited to anticipated damages, or in some cases it is possible to demand punitive damages. This article, through a comparative analysis, attempts to examine whether the same rules could apply under Iranian law or not.

Keywords

• intentional breach
• bad faith breach
• fundamental breach
• remedy
• international instruments
• iranian law