The Concept and Basis of Arsh’s (Compensation Specified) General Theory in Contracts with Emphasis on Its Economic Analysis with Comparative Study

Guarantee of legal performance is one of the important issues of contract law. In explaining this guarantee of contractual performance, economic analysis can have a definitive role. One of these guarantees of performances, which has been presented as a branch in Imamiyyah jurisprudence, is the “Arsh” (compensation specified) institution. It seems that Arsh (compensation specified) can be proposed as a general theory. In this article, we have tried to analyze it economically in addition to proving Arsh’s (compensation specified) general theory. It has also been comparatively compared and analyzed -with a bit of tolerance- under the heading of the same obligation or claim for damages in American law. The research method is also library and has been referred to internal and external sources with emphasis on jurisprudential sources. The results of this study are that the general theory of Arsh (compensation specified) was refined on the basis of classical and modern economic theories. In fact, it can be said that Arash’s general theory can be a combination of Pareto’s ethical theory of efficiency and the priority of compensation for doing the same obligation (as an almost moral theory) and the objective theory that is in the field of contractual ethics.