An Introduction and Critique of the Theory of Invalidating a Condition Encompassing the Consideration (from Jurisprudential and Legal Perspectives)

Document Type : Original Article

Author

Associate Professor, Ph.D. in Private Law, Faculty of Law, University of Qom, Qom, Iran

Abstract

In contracts, it is sometimes stipulated that if the obligee fails to fulfill their commitment within the specified time, they will not receive the contractual consideration. This type of condition, known as a "condition encompassing the consideration," may disrupt the balance of the exchanged considerations and the usual state of reciprocity, leading to questions about its permissibility. There is no specific legal provision addressing this condition, necessitating reliance on general principles. One type of invalidating condition is one that contradicts the essential nature of the contract. In some legal literature and judicial opinions, the condition encompassing the consideration has been deemed void (batil), and judges have been granted the right to adjust the contract. This article, using an analytical-descriptive approach, aims to introduce and critique this theory and demonstrate that if the condition encompassing the consideration exists at the contract's formation stage, it invalidates the contract. However, if the encompassing occurs after the contract’s formation due to one party's breach, it does not affect the pre-existing contract.

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Main Subjects

References

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Fiqh
Volume 31, Issue 1
June 2024
Pages 33-62

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History

  • Receive Date: 07 February 2024
  • Revise Date: 30 June 2024
  • Accept Date: 31 October 2024

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