Suspensive Condition in Contracts and Its Cancellation with an Emphasis on Imam Khomeini’s Views

Abstract

Suspensive condition in contracts is the one that takes effect from occurrence of another event based on the contents of the contract and resolutive condition is an arrangement between the parties that an agreement will end in the event of certain circumstances. Despite the conditional unity of nature of the two institutions, the distinction in the subject of their conditionality has created different rulings and effects. This paper, reviews the difference between the two institutions in terms of rulings and effects, with focus on Imam Khomeini’s views, while offering a thorough definition of the two and the general rules on suspensive condition in contracts and its cancellation. This study will show that in view of Imam Khomeini, whereas suspensive contract occurs in its composition, until before realization of the condition, no contract shall be considered effective, hence no obligation will be created and no conveyance shall be made either. However, under resolutive condition, a full contract is made first but with the occurrence of the condition, the considerations will be withdrawn by either owner or party. Therefore, in suspensive contract, the owners will be entitled to possess their property by all means and ways, but in conditional agreement, the conveyee is obliged to preserve the objection of conveyance, although violation of this imperative rule does not have any dispositive effect.

Keywords

• composition
• cancellation
• obligations
• suspensive
• conditional