The Bases of Compensable Indirect Loss in the Law of Iran and English Law

In the law of Iran, there is a general rule provides that indirect damage is not recoverable. However, exceptionally, liability rights today seems likely to take into account some indirect damages to be recoverable. In English law, it is compensable if the indirect loss is foreseeable by both of the parties. The loss will be recoverable if it is in the contemplation of the parties. There are theories which have proved over time in common law (Jus commune or ius commune) and formed the bases of indirect loss. Theories of efficient breach, expectation interest, reliance interest, restitution and full compensation principle each of them somehow has justified the compensation for indirect loss in England. In the law of Iran, although it is constantly emphasized on the necessity of being losses direct but there are strict legal and Islamic jurisprudential maxims (al-qawāʿid al-fiqhīyah) that indirect contractual and non-contractual damages can be compensated by them exceptionally. Causation, no harm, sanctity, reprisal and intellectuals’ basis are of Islamic maxims which can be known as the base for the recovery of indirect damages.