Study on Floating Performance in the Contractual Obligations ‎System

Articles in Press

Document Type : Original Article

Authors

1 Department of Private Law, Faculty of Islamic Studies and Law, Imam Sadeq University, Tehran, Iran

2 Department of Private Law, Faculty of Islamic Studies and Law, Imam SadIq (AS) University, Tehran, Iran

10.48308/jlr.2025.241109.2942

Abstract

The law of obligations is the beating heart of the legal system, which must be ‎constantly safeguarded and nurtured. One essential measure in this regard is ‎ensuring this branch of the legal system remains updated to address contemporary ‎societal needs. A requirement of modern society is establishing frameworks that ‎facilitate the performance of both simple and complex long-term obligations. The ‎floating performance of obligations serves as a mechanism that enables the ‎fulfillment of long-term commitments under current economic conditions while ‎allowing market participants to conduct investments with reduced risk—a ‎particularly valuable feature for Iran’s markets, where fluctuations within a single ‎day can be substantial. This approach provides the flexibility needed to absorb ‎such volatility through adjustable performance terms. This study examines the ‎conceptual foundations of floating obligation performance and explores its ‎potential integration into Iran’s legal system. The authors argue affirmatively, ‎noting that market practitioners already employ similar methods informally, ‎underscoring the need for formal legal recognition and legislative support.‎

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Legal Research Quarterly

Articles in Press, Accepted Manuscript
Available Online from 17 November 2025

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History

  • Receive Date: 18 August 2025
  • Revise Date: 02 November 2025
  • Accept Date: 17 November 2025

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