An analysis on the Nature of Termination without ‎Cause of Service Contracts ‌in Iranian, French and ‎American law

One of the conditions included in many service contracts, is the condition of termination without cause or optional termination. Since Art. 401 of the Civil Code considers the condition of termination without a period of time to be null and void, at first it’s thought that the above condition is also challenged in Iran's legal system; However, the mentioned condition has different bases in different service contracts, depending on the case. In governmental or administrative contracts, the basis for termination is the act of sovereignty, which according to international custom, governments have the right to exercise their sovereignty in all contracts; However, in contracts between private individuals or government employment contracts, the basis for termination must be evaluated in the light of the above article. If the contracting contract is considered special, the termination of the contract will be the termination of the contract; Otherwise, it should be included in the Art. 10 of the Civil Code and naturally it should not be against jus cogens. In any case, since the basis of voiding the contract in the mentioned article is the jeopardy rule, if the jeopardy/peril is resolved by appropriate measures, all the costs of the contractor (express consideration) must be compensated.