The Nature and Basis of the General Theory of Indemnity (Arsh) and Its Comparison with the Theory of Reduction of Price in the Vienna Convention

The review of traditional institutions is an appropriate policy for efficient contractual sanctions. “Indemnity” is one of the institutions that is mostly raised in the area of option of defect. The present paper tries to review the views of jurisprudents about indemnity in order to raise it as a general theory. However, this review did not mean that we are going to make a structural change in the nature of indemnity, but it is intended to perform a jurisprudential investigation into the matter. About the nature of the general theory of indemnity, it can be said that it takes a nature of damage and compensation, but it is raised as a result of a contract breach and as a contractual liability; in this case it will be in accordance with the rule. Regarding the basis of damage, the general theory of indemnity also has a dual nature. It is based on the contractual compensation, but if contractual compensation cannot be compensated in its broadest sense, compensation will be used in the form of civil and compulsory liability. Of course, the basis of reduction of price is commutative justice that is the basis for contractual liability in the philosophy of the rights of contracts.