The Effect of Termination on the Scope of Recoverable Damages In Iranian, Afghanistan, English Law and International Instruments

Document Type : Academicm and Research

Authors

1 Qom

2 دانشجوی دانشگاه قم

10.22091/csiw.2026.13819.2721

Abstract

Termination and damages are among remedies for breach of contract, and they may operate cumulatively. Termination dissolves the contract and returns the parties to their pre-contractual position, but damages focus on compensating the losses caused for breach of contract. This research seeks to comparative examine the question of what effect does contract termination have on the extent of damages that can be claimed? In Iranian law, due to the lack of distinction between the effects of termination and the effects of damages, both focus on returning the parties to their pre-contractual position. In contrast, in Afghanistan and English law, and international instruments under discussion, although termination entails restitution, However, compensation for damages requires that the injured party be placed in the same position as after the contract was executed. The findings of this research that in Iranian law, termination affects the recoverable damages, narrows the scope of damages and disturb the balance between loss and compensation. However, in other legal systems and international instruments, due to the separation of the effects of termination from the effects of damage, the scope of damage has been expanded and the obligor has been protected.

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Comparative Studies on Islamic and Western Law

Articles in Press, Accepted Manuscript
Available Online from 29 August 2026

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