Contract Adjustment in the Imamieh Jurisprudence and Laws of Iran

Despite the necessity of the principle of binding contracts and respecting the contractual obligations in the legal systems; the effect of social and economic circumstances on the possibility of the fulfillment of the obligations over the period of signing to fulfilling of the contract is undeniable. In fact, contracts are signed under presumably normal and predictable circumstances, however in case of unpredicted and unusual circumstances preventing the fulfillment of the contract obligations; the obliged party is exempt based on the law of different countries including Iran. Nevertheless there is no concrete solution if the unusual and unpredicted circumstances cause excessively severe difficulty or unconventional loss yet allowing for the fulfillment of the contract obligations. Here aided by the principles of “No Distress and Constriction” and “No damage” it is possible to give the right of adjusting or reviewing the contract to the parties or the judge or recognize the option of rescission of the contract for the parties.