Investigation of Efficiency of Compromise in tort law with ‎a focus on Coase Theory

The ways of reparation of loss through “Restitution” and “Compensation”, are determined by the legislator and are guidelines for the courts. In the approach of economic analysis of law and based on the famous theory of Ronald Coase, in a situation where the cost of the agreement is lower than the cost of applying non-consensual solutions, the negotiation of the parties is an efficient way to resolve the dispute. Because everyone is more aware of their own interests than others, and based on agreement, a solution is reached that places the marginal utilities for each of the parties at the highest possible level. In this article, we diagnose Iran's tort law system by using Coase's theory. We hypothesize that by considering the approach that exists in Coase's theory, the damages lawsuits can be resolved in a faster and cheaper way so that there is much less need to refer to judicial courts. The results of this research show that Iran's legislator has dealt with liability claims in the same way in all cases, regardless of whether the cost of the agreement is lower than the cost of using judicial and administrative organizations to resolve disputes or not.