The Foundations and Effects of “Hell or High Water Clause” in Common Law with a Comparative Study in Iranian Law

The Principle Pacta Sunt Servanda which results from the autonomy of will and intention of the parties to perform the contract is one of the fundamental principles governing contracts. A contract may be breached intentionally or frustrated by unwanted events like force majeure which causes the obligor to be exempted from performing the contract. These events are studied as excuses for the performing of the contract in different legal systems. But sometimes parties emphasize the performance of the contract so much that no reason, even legal, should permit nonperforming of the contract, as they want the contract to continue to be enforceable in any circumstance; For this purpose, the “Hell or High Water Clause” is included in the contract. In this article, we study the essence, foundations and effects of this clause in common law and the position of Iranian law in relation to it; The mentioned clause is enforceable in the common law, except in exceptional cases, and it is used and cited especially in commercial contracts. It seems that this clause is enforceable in Iranian law, provided that the contracting party has the knowledge and awareness and is capable of managing risk; so, this clause does not conflict with Iran's jurisprudence and legal foundations.