International Unification of Contract Law

To protect contracts, eliminate International trade barriers and regulate new forms of trade relations, states have long strived to minimize differences in their legal systems as to provide more desirable legal protection for international economic activities. Despite the fact that these unified codes are transnational and are thus considered non-binding in nature, contracting parties may agree to give them a binding force if so desired. Transnational codes mainly come in to force after national constitutional ratification requirements including those of Iran are satisfied otherwise their enforceability may only be assumed to the extent where they have no contradiction with internal laws (subject to Articles 10,975 and 986 of the Iran’s Civil Code). Optional set of rules may bear different legal results and provide a range of options for states to choose from. Governmental and nongovernmental organizations are both active players in formulation of unified codes in form of international conventions or alternatively model principles and legal guides which have helped expediting their ratification process. In formulating the same, with inspiration from International trade customs, either they have merged rules from various legal regimes or have taken initiatives to work out totally new model codes. This article will review joint interests of states in minimizing obstacles in ratification and execution of such set of rules.