An Analytical Approach to the Possibility of Contract Termination with the Availability of Specific Performance in German and Iranian Law

There are different various approaches relating to priorities in application of remedies for breach of contract. Specific performance has been given the first priority among other remedies in Iranian legal system. However, under certain circumstances, applying the specific performance as the first remedy will not always implement the promisee's reasonable expectations and the promisee may prefer to terminate the contract as the first remedy. Therefore, this article seeks to propose an efficient way for applying contract termination with consideration of valuable principle of "pacta sunt servanda". In this way, since amendment to German legal system relating to the law of obligation in 2001 are significant, so comparative study between two legal systems can lead to remarkable results. This article examines an analytical and comparative approach with focus on how the promisee can terminate a contract with availability of specific performance and finally it presents the suggestion for Iranian legal system.