Lapse of the contract due to the impossibility of execution its subject in the law of Iran and France

The purpose of the parties to a contract is the emergence of its results and effects and legal principles guarantee the stability, validity and reliability of contracts. But, the nature of the object of contract and various events beyond the parties` control may lead to impossibility of the execution of the contract. Different situations can lead to the lapse of contract; for example, physical destruction, and the loss of a future object or illegality. The Iranian and French laws do not expressly declare the legal status of the legal relationship in various cases of lapse of contract. Dissolution, lapse, nullity, retroactive and judicial termination are among the descriptions mentioned in this regard. This inconsistency is seen both in case law and doctrinal theories. But in 2016 revision of the French contract law, through study of the case law and doctrine in a descriptive and analytical method, caducite was introduced, which could resolve the mess; It is the sanction for a contract validly concluded, but lacking an essential element following a subsequent event. One of the essential elements in a contract is the object, the loss of which leads to the automatic and non-retroactive lapse. This experience can inspire the Iranian law-makers in better leading the case law on loss of object of contracts, through categorizing the causes of impossibility of the execution of contract due to the loss of its object.