A Review of the Agreed Damages Clause Validity and Its Results in France, England and Iranian Law

Contracting parties agreement for breach of contract remedy is justified under the flag of party autonomy principle. Predictability necessity of contract results and compliance of equation and coherence between mutual obligations restrain states from invasion to contract and its nullity or modification. However revolution movement of different legal systems shows intervention of state to this agreement in the reason of equilibrium establishment in legal relations, fairness necessities and in generally economic public policy.Paradoxical considerations deriving from contractual certainty on the one hand, and observation of fairness and prevention of penal application in civil relations on the other hand, have been transformed modification possibility of agreed damages clause and its separation from other contractual clauses to one of quarrelling issues.