The Role of Ethics and Law in the Cancellation of Contractual Agreements

Cancellation is one of the causes of termination of contracts, which also includes contractual agreements focusing on the activities of the employer and the contractor. Given that the conditions, criteria and reasons due to cancellation have legal and ethical consequences, the present study examines the role of ethics and law in relation to the cancellation of contractual agreements.

The present research is of theoretical type and the method used in it is descriptive-analytical. The required data has been collected through documents and books related to the subject.

 In organizing the present research, while observing the originality of the texts, honesty and trustworthiness have been observed.

The cancellation of a contract, which leads to its dissolution with the consent of the parties, can be done if it is in the interests of social and governance in order to protect the administrative rights and rights of citizens. In the general terms of the contract, the cancellation is not foreseen, but with regard to the protection of social interests, the employer can cancel the contract so that the contractor cannot claim compensation later, which legally puts the contractors in an unequal position and even obey the orders of employers. In addition, from ethical point of view, arguing for the public interest from employers may lead to government corruption.

While in the Iranian legal system, the termination of an administrative contract is justified only on the basis of the principle of public interest; However, the principle of continuity of public service and the principle of respect for the acquired rights of contractors should be provided for in cases where contractors have the right to terminate, because the cancellation of contract is a two-way termination and regardless of the consent and authority of the contractor in dissolving the contract is not accepted morally and legally. The subject of the terms of termination in an administrative contract is mainly contained in Articles 46 and 48 of the General Conditions of the Contract, which are often in the employer's favor and a reason for centralizing authority and providing a ground for corruption in government agencies.