The Buy-back Development Contract for Phases 2&3 of South Pars Gas Field and Incomplete Contract

An incomplete contract is an exchange in which some aspects of a transaction is unspecified. Contractual incompleteness decrease contract effectiveness. Buy-back contract has legal and contractual obligations witch incompleteness from some of these aspects is undesirable. This study analysis these obligations in time، cost and repayment in phases 2&3 of south pars gas field in development period. Result shows that buy-back contract for phases 2&3 of south pars gas field is incomplete. Because of high transaction cost، parties bounded rationality، uncertainty، complexity and project time and necessarily lead not to perfect implementation of commitment. In transaction cost economics any contract is inevitably incomplete. Some mechanisms designed for gap filling in incomplete contract. In buy-back contract this mechanism is designed in joint management committee. Distribution of power between parties is equal and contract cannot adapt contract performance with initial contract.