The nature and consequences of the renegotiation clause to the court and to the parties of a contract: A comparative study

Document Type : Original Article

Authors

1 Ph.D. Candidate of Private Law, University of Tehran

2 Assistant Professor of Law, University of Tehran

10.52547/jlr.2023.228954.2332

Abstract

Negotiation is one of the methods that seek to resolve the dispute peacefully, and legally it has an independent nature from similar methods such as arbitration, mediation and conciliation. The necessity of negotiation is that because its provisions are carried out before entering the judicial authorities, it can be an effective and efficient way to speed up the dispute resolution process and reduce the volume of cases in Iran's courts and preserve the commercial-economic information of the parties to the contract. The novelty of this topic is that the negotiation clause has not been discussed so far in relation to the effect it has on the parties and the duty of Iran’s courts in dealing with it. This research was compiled with descriptive-analytical method and using library sources and verdicts of domestic and foreign courts. The results showed that if we consider the negotiation as a clause of a passive act or a clause of the result of a partial deprivation of rights, then the guarantee of its violation will be the issuance of a non-hearing order by the court. Regarding the duty of the parties during the negotiation, it is concluded that the mere recognition of such a clause is not enough for its precise implementation, but the need for continuous cooperation and good faith on the part of the contract parties in the process of renegotiation is also required.

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History

  • Receive Date: 28 September 2022
  • Revise Date: 21 January 2023
  • Accept Date: 21 February 2023

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