A Comparative Perspective on the Theory of Contract Reduction and Its Feasibility in Iranian Law

Document Type : Academicm and Research

Author

Assistant Professor of the Department of Law, Faculty of Theology Islamic, Azarbaijan Shahid Madani University

10.22091/csiw.2026.12873.2656

Abstract

The theory of "contract reduction" as a legal institution allows the valid portions of a contract to be preserved in cases of partial invalidity. The application of this theory, which requires judicial intervention, is recognized under similar frameworks in various legal systems. Despite the absence of explicit statutory provisions for this institution in Iranian law, scattered evidence in legal texts and judicial practice indicates an implicit and incomplete acknowledgment of the theory. This article employs a comparative-analytical method to elucidate the subjective basis (parties’ intent) and objective basis (public policy) of contract reduction, its implementation conditions, legal effects, and its potential adoption in Iranian law. In brief, although the legal mechanism of "Tabaoz Safqah" bears functional similarities to contract reduction, fundamental differences exist between the two. Explicit recognition of contract reduction as an independent legal institution in statutory texts is essential to align Iranian law with international legal standards and ensure contractual stability.

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