Methods of damage assessment based on the convention on international sale of goods(1980): a comparative study in Iranian, French and English legal systems and the principles of European contract law

The Convention on Contracts For The International Sale of Goods, to compensate the damages resulting from breach of the contract, has provided for two different methods. The substitute contract and claiming the difference between the contract price and the price in the substitute contract is provided for. Claiming the difference between the contract price and the market price at the time of revocation or the time of the delivery of the goods before the revocation, is provided for. The choice between the two methods requires meeting certain requirements such as the revocation of the original contract, existence of damages and conclusion of a second contract in a reasonable method and at a reasonable time. The methods are recognized in the European Principles of Contract Law. But, a claim based on the difference between the contract price and the current price at the time of taking possession of the goods before the revocation, mentioned in the final part of paragraph 1 of article 56 of the Convention, cannot be found in the Principles. The methods are not expressly adopted in English and French legal systems but scholars believe the spirit of the governing regulations are not unfamiliar with the notions. Iran has not adopted the convention yet. Domestic regulations also do not expressly allow the methods. The Iranian case law, depending on the nature of the parties relationship and the claims arising from it, allows different ways for damage compensation, based on civil responsibility. Claiming damages based on contract terms damages arising from nullity of the transaction and a third party`s right in the goods based on the current value of the price, damages resulting from delayed payment, based on the inflation rate index and damages based on the expert`s report are among the methods used in the Iranian law.