Liability adjustment and increasing caution in contract execution in Efficient Breach theory in French Reform of the law of obligations, Iran, and Common law

Document Type : Scientific research

Authors

• jalal soltanahmadi ¹
• Zahra Vatani ²
• Masoumeh Zamanian ³

¹ Ph.D. in Private Law, Tarbiat Modares University, Associate Professor, Faculty of Law Payame Noor University, South Tehran, Iran

² Ph.D. in Islamic Jurisprudence and Law, Assistant Professor, Department of Jurisprudence and Law, Imam Khomeini and Islamic Revolution Research Institute, Tehran, Iran

³ 1- M.Sc. Graduate, Department of International Law, Faculty of Law, Payame Noor, South Tehran, Iran. 2- M.Sc.Graduate of the Department of Jurisprudence and Law, Al-Zahra Faculty of Theology, Tehran, Iran.

https://doi.org/10.22067/economlaw.2023.74189.1121

Abstract

The concept of the efficient breach is made of fundamental modifications withinside the regulation of responsibilities and the substitute of the system of ethical utilitarianism with a system based on value originality. And considers the idea of contract regulation now no longer as "obligatoriness of contracts", however as "necessity of acquiring the preferred contract", that is inevitable if the contract is acquired through executing the contract. And if its miles occurred through the breach, breach of contract isn't simplest disgusting, however commendable and possibly necessary, and "efficiency" is the criterion for being based on one in every of methods. In present-day criminal perspectives, it's miles a remember of "credit" that "shipping the authentic thing " is one of the methods to obtain it. Also, the obligation of making the "desirable" isn't completely at the obligor, and the obligee is needed to participate withinside the choicest provision of the contract because of intervening withinside the contract. In addition, it isn't simplest for the parties who're withinside the scope of the results of the transaction, however, additionally, a third party, relying on the circumstances, may input into this variety and be responsible beneath neath this agreement. The purpose of the prevailing study withinside the Iranian legal system is to use a descriptive-analytical approach to evaluate this concept to the principles and postulates of this legal system. Although before everything look this concept is taken into consideration in opposition to the obligatoriness of contracts and its utility is forbidden, however, in a deeper analysis, the possibility of its utility in this legal system based on jurisprudence isn't ruled out, And preventive liability for breaches will significantly increase economic efficiency.

Keywords

• Economic Efficiency
• Deterrence
• Preventive responsibility
• Mitigation of Damages
• The principle of ability citation contract

References

• Aguiar, Anelize slomp (2011), the law applicable to international trade transactions with Brazilian parties, university of Toronto.
• Al-Sanhouri, Abd al-Razzaq Ahmad (1998), Al-Usayt fi Sharh al-Qanun al-Madini al-Jadid, Kitab al-Biy wa Al-Maqayzah, Ch. 4, Beirut, Al-Halabi al-Haqqiyah. (In Arabic)
• Ansari, Mehdi (2011) (a), theory of effective breach of contract from the point of view of the school of economic analysis of law, Law Quarterly, no. 1. (In Persian)
• Ansari, Mehdi (2011) (b), economic analysis of contract law, Tehran, Jangel. (In Persian)
• Ansari, Morteza (1378), Makasab, Qom, Majmaal al-Fikr al-Islami. (In Arabic)
• Atiyah, P. S., Adams, John N., Macqueen, Hector (2010), The Sale of Goods, Pearson Education Canada; 12^th
• Benedicte Fauvorque-cosson (2015), “Towards an important reform of French civil law”. Montesquieu Law Review, No. 3.
• Bentham, Germy (1789), The theory of legislation, Principles of the civil code, at: http://wwwjstororg.
• Bergel, J. L. et M. Bruschi et S. Cimamonti (2000), Traité de droit civil: Les biens (sous la direction de J. Ghestin), Paris, L.G.D.J.
• Bloch, P. (1988), Le transfert de propriété dans la vente, RTD civ.
• Bridge, Michael G., ed. (2010), Benjamin's sale of goods. Common law library. Sweet & Maxwell, London.
• BuffelanLanore, Y. et V. Larribau-Terneyre (2017), Droit civil: Les obligations, 15e éitdion, Paris, Dalloz.
• Cafaggi, F., (2009), Creditor’s Fault: In Search of a Comparative Frame, EUI Working Papers Law No. 2009/15. Available at SSRN: http://ssrn.com/abstract=1551825.
• Calabresi, Guido; Melamed, A. Douglas (1972), Property rules, liability rules, and inalienability: One view of the Cathedral, Harvard Law Review: http://wwwjstororg.
• Carbonnier, Jean (2000), Droit civil t.4 les obligations, 22^e ed, Paris, Puf Themis.
• Charpentier, É. (2002), Un paradoxe de la théorie du contrat : l'opposition formalisme /consensualisme, Les Cahiers de droit, vol.43, n° 2.
• Cooter, Robert; Ulen, Thomas (2011), Law and economics, Pearson Educacion; 6th edition.
• Cornu, Gerard (1992), "Vocabulaire juridique", Paris, Presses universitaires de France, 3° Ed.
• Cunningham, Lawrence A. (2016), Contracts in the Real World Stories of Popular Contracts and Why They Matter, Washington, University Law School, 2^nd
• Curtis, L, (1986), Damage measures for bad faith breach of contract: an economic analysis, Stanford Law Review, Vol. 39, No. 1, pp. 161-185. at: http://wwwjstoror
• Delahais, Caroline (2016), Réforme du droit des obligations: les effets du contrat à l'égard des tiers, Revue Juridique de l'Ouest, Vol. 2, pp. 71-82.
• Deshayes, Olivier; Genicon, Thomas; Laithier, Yves-Marie (2018), Réforme du droit des contrats, du régime général et de la preuve des obligations, LexisNexis, 2^e édition.
• Dissaux, Nicolas, Christophe, Jamin (2016), Réforme du Droit des Contrats, Du Régime Général et de la Preuve des Obligations, Paris: Dalloz.
• Dissaux, Nicolas; Jamin, Christophe (2016), Réforme du droit des contrats, du régime général et de la preuve des obligations, Paris: Dalloz.
• Downe, Alexis (2016), The Reform of French contract law: a critical overview. Revista da Faculdade de Direito-UFPR, Curitiba, vol 61, no 1.
• Eisenberg, M. A., (2005) Actual and virtual specific performance, Vol. 95, California Law Review, pp 975-1050.
• Eisenberg, Melvin, (2004), The theory of efficient breach and the theory of efficient termination, UNIVERSITY OF CALIFORNIA, BERKELEY, at: http://repositoriescdliborg/berkeley-law-econ/spring2004.
• Farnsworth, E Allan, (1985), Your loss of my gain? The dilemma of disgorgement principle in breach of contract, Vol. 94, Yale Law Journal, at: https://digitalcommons.law.yale.edu/ylj/vol94/iss6/4
• Ferrier, Nicolas (2015), Le renforcement du rôle du juge dans la détermination et la révision du contenu du contrat (Rapport français), La réforme du droit des obligations en France, 5^e journées franco-allemandes, dir. R. Schulze et alii, Société de législation compare.
• Flour, Jacques; Aubert, Jean-Luc; Savaux, Eric (2002), Les obligations t.1; l'acte juridique; 10^e ed, Armand Colin.
• François, C. (2018), Présentation des articles 1196 à 1198 de la nouvelle sous-section 2, "Effet translatif, La réforme du droit des contrats présentée par l'IEJ de Paris 1. https://iej.univ-paris1.fr/openaccess/reformecontrats/titre3/stitre1/chap4/sect1/ssect2-effet-translatif
• Fried, Charles, (1981), ‘Contract as Promise’, Cambridge MA: Harvard University press.
• Friedman, Daniel, (1989), The Efficient Breach Fallacy, The Journal of Legal Studies, Vol 18, No 1.
• Friedman, David (2001), Law and Economy, translated by Piman Shadfar, Economic Magazine, vol. 2. (In Persian)
• Fuller, L. L.; Perdue, William R. (1936), The Reliance Interest in Contract Damages, Vol. 46, No. 1, Yale Law Journal, pp. 52-96.
• Ghestin J.; Loiseau G.; Serinet Y. (2013), La formation du contrat. Tome 1. Le contrat, le consentement. 4^th ed, Paris: Librairie générale de droit et de jurisprudence and Lextenso.
• Gross, B. (1978), Le droit de la vente, 2^e éitdion, Paris, Presses Universitaires de France.
• Guiomard, Pascale (2016), Réforme du droit des obligations - Supplément, Dalloz.
• Gwyn, Julius (1952) “Requirement and Output Contract”, Duke Bar journal, Vol. 2, N. 2, pp.180-194.
• Hatzis, Aristides N. (2006), Civil Contract Law and Economic Reasoning: An Unlikely Pair?. THE ARCHITECTURE OF EUROPEAN CODES AND CONTRACT LAW, Stefan Grundmann and Martin Schauer, eds., Kluwer Law International, Private Law in European Context Series, Vol. 8, pp. 159-191, Available at SSRN: https://ssrn.com/abstract=661661
• Holmes, Oliver Wendell, (1881), Common law, at: http://biotechlawlsuedu/Books/ Holmes/claw_chtm.
• Hosseini Rouhani, Seyyed Mohammad Sadiq (2007), Minhaj al-Faqaheh, Qom, Anwar al-Mahdi. (In Persian)
• Hoynak, Bryan (2010), Filing in the blank: Defining Breaches of Contract Excepted from Discharge as Willful and Malicious Injuries to Property under 11 U.S.C. 523(a) (6), WASH. & LEE L REV.693, V. 67.
• Huet, J. (2020), Responsabilite contractuelle et responsabilite delictuelle: essai de delimitation des deux orders de responsabilite, Editeur: Éditions Panthéon-Assas, These Paris II (1978), LGDJ.
• Hullicki, Maciej (2009), “Currentstatues of private enforcement in the United States and the European Unions”, Jagiellonain University.
• Imami, Seyyed Hasan (1992), Civil Rights, Tehran, Islamia. (In Persian)
• Izanlou, Mohsen (2003), Limiting and Abrogating Terms of Liability in Contracts, Tehran, Inteshar. (In Persian)
• Jafari Langroudi, Mohammad Jaafar (2002), Extended in Legal Terminology, Tehran, Ganj Danesh. (In Persian)
• Jafari Langroudi, Mohammad Jaafar (2009), Encyclopaedia of Civil and Business Laws: Laws of Obligations and Contracts, Tehran, Ganj Danesh. (In Persian)
• D (1999), “Chitty on Contracts”, Vol. 2, Twenty– Eighth Edition, London, Sweet & Maxwell.
• Kant, Immanuel (1994), General introduction to the metaphysic of morals, The great books.
• Katouzian, Nasser (1995), Civil Rights: Obligations outside the contract (forced guarantee), Tehran, University of Tehran. (In Persian)
• Katouzian, Nasser (1996), Civil Rights; Exchange transactions - ownership contracts: sale - barter - lease - loan, Tehran, Intesharat. (In Persian)
• Katouzian, Nasser (2001), General Rules of Contracts, Tehran, Sahami. (In Persian)
• Katouzian, Nasser (2021), Civil Law in the Current Legal Order, Tehran, Mizan. (In Persian)
• Khandouzi, Seyed Ehsan (2007), Economic criteria in new legislation, Majles and Research Magazine, year 13, no. 54. (In Persian)
• Khoi, Saydabul al-Qasim (1958), Misbah al-Faqaha fi al-Maamalat, Qom, Vejdani. (In Arabic)
• Kuchhal, M. C. (1999), ‘Business Law”, Third Revised Edition.
• Lahav, Gil (2000), A Principle of Justified Promise - Breaking and its Application to Contract Law, Vol. 57, N.Y.U. Annual Survey of American Law, pp. 163-178.
• Laithier, Yves-Marie (2004), Étude comparative des sanctions de l'inexécution du contrat, Paris, L.G.D.J.
• Lajugie, Joseph (1988), Les doctrines economiques, translated by Jahangir Afkari, Tehran, Islami. (In Persian)
• Lecourt, Arnaud (2016), Fiches de droit des obligations, 5^e éitdion, Paris, Ellipses.
• Lianos, Ioannis (2015), “Causal Uncertainty and Damages Claims for Infringement of Competition Law in Europe”, CLES Researchers Paper, University College London - Faculty of Laws; HSE -Skolkovo Laboratory for Law and Developm.
• Mainguy, Daniel, (2004), L'efficacité de la rétractation de la promesse de contracter, Université de Montpellier, RTDciv.
• Makarem Shirazi, Nasser (1957), Anwar al-Faqaheh (Kitab al-Baya), Qom, Imam Ali School (AS). (In Arabic)
• Markesinis, B and Unberath, H and Johnston, A. (2006), The German Law of Contract: A Comparative Treatise, Oxford, Hart Publishing, (2ed).
• Markovits, Daniel; Schwartz, Alan (2011), The Myth of Efficient Breach: New Defenses of the Expectation Interest, V. 97, Virginia LR
• Mattei, Ugo, (1995), The comparative law and economics of penalty clauses in contracts, journal of comparative law, Vol. 43, The American Journal of Comparative Law. At: http://wwwjstororg.
• Mazeud, H., J. et L. (1987), Leçons de droit civil, Tome 3 (Vente et échange), 7^e éitdion, Paris, Montchrestien.
• McGregor, QC. Harvey (2008), The Role of Mitigation in the Assessment of Damages, Book Chapter: (Contract Damages, Domestic and International Perspectives), Djakhongir Saidov and Ralph Cunnington (Eds), Hart Pub.
• Morgan, Jonathan (2013), Contract Law Minimalism: A Formalist Restatement of Commercial Contract Law (Law in Context), Cambridge University Press; 1^st
• Najafi Khansari, Musa bin Muhammad (2000), the recitations of Muhammad Hossein Naini, Manieh al-Talib, Qom, Islamic Publishing House. (In Arabic)
• Piedelièvre, S. (2000), Traité de droit civil: La publicité foncière (sous la direction de J. Ghestin), Paris, L.G.D.J.
• Pirhadi, Mohammadreza (2007), transfer of ownership in the contract of sale, Tehran: Shalizeh. (In Persian)
• Posner, Richard (2014), Economic analysis of law, Wolters Kluwer Law & Business; 9^th edition
• Poulique, C. (2000), Le rôle de la volonté en matière de qualification des contrats, Revue juridique de l'Ouest, n° 4.
• Qasim, Mohammad Hassan (2007), Al-Qunun al-Madani (Al-Aqood al-Masmah), Beirut, Al-Halabi Al-Haqwiyyah Charters. (In Arabic)
• Rémy, Philippe (1997), La Responsabilité Contractuelle: Histoire d'un faux Concept, RTD civ, 7^e éd.
• Ribeiro, Robert (2002), Damages and Other Remedies for Breach of Commercial Contracts, Great Britain, Thorogood.
• Roger LeRoy Miller & Gaylord A. Jentz (2011), Business Law Today: The Essentials, USA: South - Western Cengage Learning.
• Rühl, Giesela (2007), Party autonomy in the private international law of contracts: transatlantic convergence and economic efficiency, Law research institute research paper series, CLPE Research Paper, Vol. 03 No. 1.
• Sadat Akhavi, Seyed Mohsen; Kashani, Mahmoud (2008), the obligation of the victim to reduce the damage with an emphasis on English and American law", Journal of Social and Human Sciences of Shiraz University, Vol. 17, No. 1. (In Persian)
• Safaei, Seyed Hossein (2013), Civil Law and Comparative Law (Collection of Articles), Tehran, Mizan. (In Persian)
• Safai, Hossein; Rahimi, Habib Elah (2010), Civil liability (non-contractual obligations), Tehran, Samt. (In Persian)
• Safai, Seyyed Hossein (2006), Civil Laws Preliminary Course, General Rules of Contracts, Tehran, Mizan. (In Persian)
• Sami Zaki, M. (1986), Le formalisme conventionnel: illustration de la notion de contratcadre, Revue Internationale de droit comparé. Vol. 38, N°4.
• Samuelson, Paul Anthony (2005), Economics, translated by Morteza Mohammad Khan, Tehran, Elmi Farhangi. (In Persian)
• Schmittoff, Clive M. (2017), International Trade Laws (translated by Behrooz Akhlaghi), Tehran, Samit. (In Persian)
• Séminar risques (2006), assurances, responsabilit´e, réparassions du prejudice corporel et e´quite´. at: courdecassation.fr
• Shadour, Abdul Hadi (2019), The Collection of Unanimous Decisions of the Supreme Court (Legal and Criminal), Tehran, Jangel. (In Persian)
• Shahidi, Mehdi (2009), Civil Laws 1 - Formation of contracts and obligations, Tehran, Majd. (In Persian)
• Shahidi, Mehdi (2010), Works of Contracts and Commitments, Tehran, Majd. (In Persian)
• Shahidi, Mehdi (2020), Civil Rights 6 - Certain Contracts 1, Tehran, Majd. (In Persian)
• Symeonides, Symeon (2010), Party Autonomy in Rome I and II from a Comparative Perspective, Convergence and Divergence in Private International Law – Liber Amicorum Kurt Siehr, Eleven International Publishing. Printed in The Netherlands.
• Tabatabai Yazdi, Seyyed Mohammad Kazem (1947), Makasab Margin, Qom, Ismailian. (In Arabic)
• Taheri, Habibullah (1997), Civil Law, Vol. 4, Qom: Islamic Publications. (In Persian)
• Terré, François; Simler, Philippe; Lequette, Yves (2002), les obligations, 8 éd, Paris, Dalloz.
• Terré, François; Simler, Philippe; Lequette, Yves; Chénedé, François (2018), Droit civil; les obligations, 12^e édition, Dalloz.
• Terré. F. (2009), Pour une réforme du droit des contrats, Dalloz.
• Thill, Melanie et al (2014), France (chapter 11), The Private Competition Enforcement Review - France, Law Business Researcher Ltd.
• Treitel, G H, (2003), The law of contract, 11 ed, London, Sweet and Maxwell.
• Trenor, John A. (2018), The Guide to Damages in International Arbitration, (Global Arbitration Review). London: Law Business Research Ltd.
• Uniform Commercial Code (UCC), legislature.mi.gov
• Urvoas, Jean-Jacques (2017), Projet ROJE de Refome de la Responsabilite Civil, Ministére de la justice.
• Valyoun, Reza (2001), Selling unbuilt apartments, Law and Policy Research, vol. 4. (In Persian)
• Viney, Geneviève (2019), Introduction à la responsabilité, L.G.D.J, 4^e édition.
• Viney, Genevieve; Jourdain, Patrice (2000), les effets de la responsabilit´e; 2 ed, LGDJ, n.59.
• Viney,Genevieve; Jourdain, Patrice (1998),Traité de droit civil, les conditions de la responsabilité, 2 éd, Paris, LGDJ.
• Youssef Al-Hakim, Jack (1988), Al-Aqud al-Shaa'a o Al-Masmaa (Aqd al-Bay'), Damascus, Manuscripts. (In Arabic)
• Zamanian, Masoumeh (2021), evaluation and compensation in international commercial contracts, master's thesis in the field of international law, Law School of Payam Noor University, South Tehran. (In Persian)