Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique

The need to comply with good faith as a general binding principle that creates obligations for the parties at the stages of concluding, executing or interpreting the contract is not explicitly addressed in Iranian law. Accordingly, there has been disagreement for years regarding the status of this p...

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Main Authors: Seyedali Khazaei, Hannaneh Allahmoradi
Format: Article
Language:fas
Published: Semnan University 2023-05-01
Series:مطالعات فقه و حقوق اسلامی
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Online Access:https://feqh.semnan.ac.ir/article_7886_68bd73fcaf654550901536273acd3e8b.pdf
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author Seyedali Khazaei
Hannaneh Allahmoradi
author_facet Seyedali Khazaei
Hannaneh Allahmoradi
author_sort Seyedali Khazaei
collection DOAJ
description The need to comply with good faith as a general binding principle that creates obligations for the parties at the stages of concluding, executing or interpreting the contract is not explicitly addressed in Iranian law. Accordingly, there has been disagreement for years regarding the status of this principle. Some jurists, citing Article 220 of the Civil Code, have considered custom to be the equivalent of good faith. Others have equated what is discussed in our regulations titled as knowledge and lack of knowledge as mala fide and bona fide, respectively. Recently, it has been put forward that it is possible to prove the need to observe good faith in application of all rights and duties in all areas including contract law by induction from the rules related to commercial competitions, insurance contracts, mistaken intercourse, referring of uninformed principal in an unauthorized transaction for damages and the correctness of the actions of the dismissed lawyer unaware of the dismissal. However, the need to observe good faith in commercial competitions is not a matter of judicial acts. Furthermore, due to having special characteristics and the need to observe maximum good faith in the insurance contract and due to the lack of common characteristics between the latter and other contracts, its special rules cannot be extended to all other contracts. In addition, the meaning of good faith in the rules governing mistaken intercourse, referring of uninformed principal in an unauthorized transaction, the rectification of official document, and the correctness of the actions of the dismissed lawyer unaware of the dismissal is its supportive aspect and is not related to the intended meaning of good faith in this subject. Therefore, the examples presented for inductive generalization are not conventional and therefore the conditions for relying on induction in this regard are not provided.
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series مطالعات فقه و حقوق اسلامی
spelling doaj-art-f63d00ccc6cb44fb93a682d37b15f7302024-12-09T08:44:00ZfasSemnan Universityمطالعات فقه و حقوق اسلامی2008-70122717-03302023-05-011530568010.22075/feqh.2022.22085.26877886Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A CritiqueSeyedali Khazaei0Hannaneh Allahmoradi1Assistant Professor Private Law, Kharazmi University, Tehran, Iran: Corresponding Author:Faculty of Law and Political Science, Kharazmi University, Tehran, IranThe need to comply with good faith as a general binding principle that creates obligations for the parties at the stages of concluding, executing or interpreting the contract is not explicitly addressed in Iranian law. Accordingly, there has been disagreement for years regarding the status of this principle. Some jurists, citing Article 220 of the Civil Code, have considered custom to be the equivalent of good faith. Others have equated what is discussed in our regulations titled as knowledge and lack of knowledge as mala fide and bona fide, respectively. Recently, it has been put forward that it is possible to prove the need to observe good faith in application of all rights and duties in all areas including contract law by induction from the rules related to commercial competitions, insurance contracts, mistaken intercourse, referring of uninformed principal in an unauthorized transaction for damages and the correctness of the actions of the dismissed lawyer unaware of the dismissal. However, the need to observe good faith in commercial competitions is not a matter of judicial acts. Furthermore, due to having special characteristics and the need to observe maximum good faith in the insurance contract and due to the lack of common characteristics between the latter and other contracts, its special rules cannot be extended to all other contracts. In addition, the meaning of good faith in the rules governing mistaken intercourse, referring of uninformed principal in an unauthorized transaction, the rectification of official document, and the correctness of the actions of the dismissed lawyer unaware of the dismissal is its supportive aspect and is not related to the intended meaning of good faith in this subject. Therefore, the examples presented for inductive generalization are not conventional and therefore the conditions for relying on induction in this regard are not provided.https://feqh.semnan.ac.ir/article_7886_68bd73fcaf654550901536273acd3e8b.pdfgood faithhonestybelief in the correctness of actscustomknowledge and lack of knowledge
spellingShingle Seyedali Khazaei
Hannaneh Allahmoradi
Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
مطالعات فقه و حقوق اسلامی
good faith
honesty
belief in the correctness of acts
custom
knowledge and lack of knowledge
title Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
title_full Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
title_fullStr Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
title_full_unstemmed Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
title_short Recognizing the Principle of Good Faith in Concluding Contracts in Iranian Law: A Critique
title_sort recognizing the principle of good faith in concluding contracts in iranian law a critique
topic good faith
honesty
belief in the correctness of acts
custom
knowledge and lack of knowledge
url https://feqh.semnan.ac.ir/article_7886_68bd73fcaf654550901536273acd3e8b.pdf
work_keys_str_mv AT seyedalikhazaei recognizingtheprincipleofgoodfaithinconcludingcontractsiniranianlawacritique
AT hannanehallahmoradi recognizingtheprincipleofgoodfaithinconcludingcontractsiniranianlawacritique