Explanation of aggravating liability clauses in contracts under the Iranian law

Abstract

Binding principle is considered a fundamental and essential factor in contracts and transactions under the laws of all countries, including Iran. The principle dictates that when contracting parties legally enter into the contract, it imposes certain obligations to them. Firstly, they are obliged to fulfill contractual obligations. Secondly, parties failure to fulfill their agreed upon obligations is deemed fault. Thirdly, pursuant to general rules of liability, the obligor is hold responsible to only compensate the same damages inflicted on the other party. However, contracting parties can mutually agree to increase contractual obligations of the obligor. As a result, the obligor holds responsible to compensate damages more than the agreed upon clauses.  

The present paper aims to discuss all types of aggravating liability clauses, their features and clauses.

The central question in this research asks whether it is possible to aggravate contractual obligations above legal liability. The hypothesis that will be examined is the possibility of aggravating obligations within the scope of jurisprudence and law. This research is analytical and exploratory in terms of its purpose and the library method is used to collect data. This paper seeks to examine different types aggravating liability clauses for compensation of damages according to the Iranian law.