A comparative study of contract lapse in French and Iranian law

One of the shortcomings of Napoleon's code was the lack of "lapse" of considerable contracts, which was recognized by French doctrine and jurisprudence. Therefore, they tried to propose a codification in various civil law revision projects. Thus, in Decree No. 131-2016, February 10, 2016, the Law of Obligations and Contracts, a new institution called "caducité (lapse)" was envisaged in Articles 1186 and 1187 of the French Civil Code. This institution describes the status of a contract that has been entered into quite validly, but then loses one of its essential elements due to a subsequent event. The result of this situation, is the discharge of the obligations of the parties to the contract. Iran Civil Code does not define such an institution, but examples of caducité (lapse) can be deduced from some provisions of Civil Law and other laws. In general, the reasons for lapse of the contract can include the deterioration of the subject of the contract, the loss of its cause, death or incompetence in the obligations of the person and If suspensive condition fails the prescribed period provided in the suspended condition that any occurrence of the recent assumptions may lead to the termination of the contract. Lapse occurs automatically and its effect is not retroactive. Thus, in the opinion of the authors, the provisions of Iran Civil Code are incomplete in this respect, and the establishment of such an institution can be useful.