The Relational Approach to Contract, the vested (formal) Relational Contract, and Their Implications for Contractual Relationships

Articles in Press

Document Type : Original Article

Authors

1 Faculty member, Department of International Trade Law, Faculty of Law, Shahid Beheshti Universityi, Tehran, Iran

2 , PhD candidate in Oil and Gas Law, Faculty of Law ,Shahid Beheshti University, Tehran, Iran

10.48308/jlr.2026.241695.2964

Abstract

Although many contract scholars have embraced the relational approach and employed it as both a theoretical framework and a practical tool to remedy the shortcomings of contract law in securing the mutual interests of the parties, the claim of an uncertain legal fate for such contracts—particularly due to the potential need for judicial intervention and its consequences—has prevented their widespread adoption. Conversely, theoretical and empirical studies indicate that overlooking relational contracts merely removes the question rather than solving it, leading to the neglect of the economic and social dimensions of contracts as well as the genuine intentions and purposes of the contracting parties. Yet, relationality has tangible effects for the parties and proves especially vital in long-term contractual relationships.

As the first legal study of its kind in Iran, this article seeks to explore the nature and characteristics of the relational approach to contracts and, moving beyond purely interpretive perspectives, to introduce a new structured form of relational contract. This proposed model, while written, explicit, and grounded in mutual benefit, remains flexible. Thus, it combines the advantages of relational thinking with a normative and rule-based framework—free from the traditional criticisms attributed to relational contracts—and enables the application of the relational approach in a written form consistent with the fundamental objectives of contract law.

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Legal Research Quarterly

Articles in Press, Accepted Manuscript
Available Online from 19 January 2026

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History

  • Receive Date: 28 September 2025
  • Revise Date: 04 November 2025
  • Accept Date: 19 January 2026

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