Document Type : Research Article
Author
Private Law, Razavi University of Islamic Sciences
Abstract
Termination of installment contracts is one of the most complex manifestations of contract dissolution in commercial relations, because the breach of obligation in such contracts is often gradual, staged, and dependent on the macrostructure of the contract. The Convention on the International Sale of Goods in Article 73 has adopted a systematic approach to fundamental breach and interdependence of installments by providing a specific mechanism for the termination of past, future, and entire installments. In contrast, Iranian law does not have a specific provision regarding installment contracts, and the analysis of termination in this area is inevitably carried out through the general rules of options, especially the option of dividing the transaction. The present study, using a descriptive-analytical method and a comparative approach, first examines the general principles of termination in the Convention and the position of fundamental breach, then analyzes the specific mechanism of Article 73 regarding partial and total termination of installment contracts. Next, the principles of termination and the possibility of contract severability in Iranian law are analyzed and the capacities of the option of contract separation and other related rules are evaluated. The research findings show that the Convention, by distinguishing between fundamental and non-fundamental breaches and emphasizing the principle of contract survival, has made the termination of the entire installment contract subject to the fulfillment of narrow conditions and the establishment of structural dependence of the installments; while Iranian law, relying on the traditional system of options and without conceptual grading of breaches,
Keywords
- Termination of contract
- installment contract
- fundamental breach
- Article 73 of the Convention on the International Sale of Goods
- option to separate the transaction
- severability of the contract
- dissolution of the contract
Main Subjects
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