In a research project supported by the National Science Foundation of Iran, the doctoral student of private law of Tarbiat Modares University conducted a “comparative study of damages caused by breach of contract in common law, written law and Iranian law”.
According to RCO News Agency, Ismail Nematollahi explained the reason for carrying out this plan: In many cases, contracts are violated by one of the parties and are not completed. In case of breach of contract, several methods have been devised to deal with it, which are known as “performance guarantee” or “compensation for breach of contract” methods in foreign law, and include things such as the obligation to perform the same obligation, termination and correction of incomplete or defective performance. Another of these methods is paying monetary damages or compensation to the injured party.
He added: The subject of this research is only monetary compensation or damage, which can be divided into two categories according to a classification; The first category of damages that the parties have agreed on (specified damages) and the second category of damages that the parties have not agreed on (unspecified damages). According to a classification, unspecified damages are divided into three categories: substantive damages, symbolic damages, and punitive damages.
Nematollahi reminded: The most important damage that forms the main axis of this research is “expectation damage” and about it, discussions such as its elements, conditions and methods of evaluation can be raised.
He continued: In the first two cases, it should be checked what items the victim can claim as expected damages and what are the conditions for claiming and paying damages. Regarding the evaluation method, the issue is which one should be chosen from among the various methods such as paying the cost of correction and paying the difference between the value of the work done and the value of the work that should have been done.
Nematullahi continued: The most common type of damage in legal systems, including written law (Roman-German) and common law (customary law), is expected damage, some examples of which overlap with non-profit in our jurisprudence and legal literature. Breach of contract is a phenomenon that is seen in many contractual obligations, and different legal systems have tried to deal with it or reduce its effects and consequences by providing methods such as paying damages.
According to the National Science Foundation of Iran, Nematollahi continued: The compensatory method of paying damages in our legal system is ambiguous and requires a detailed explanation. This research tries to prove these points that, in the first place, the breach of contract in the custom of the current legal systems causes responsibility and financial guarantee, and from this strong custom, it can be concluded that the non-genuineness of the property is subject to contractual damages.
In the end, he pointed out: The second point is that, on the assumption of accepting non-profitability, all damages caused by breach of contract cannot be considered examples of non-profitability, and therefore, it is possible to compensate for many contractual losses.
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