Comparative Study of Payment Barriers for the Purchase Price in Iranian Law and International Sale of Goods
Keywords:
Seller, Barriers to Payment of the Price, Buyer, Obligations, Iranian Law, International Sale of GoodsAbstract
Although various scholarly works have addressed the concept of the purchase price and methods of payment, there has been no effective analysis from a damage-assessment perspective regarding the obstacles to payment. Therefore, the central focus of this article is to examine the obstacles to the payment of the purchase price under Iranian law and in international sales contracts. Additionally, it seeks to answer the fundamental question: What effect does the identification of these obstacles have on the conduct of contracting parties with regard to the principles of binding force and validity of the contract? According to Paragraph 1 of Article 362 of the Iranian Civil Code, "upon the conclusion of a sale, the buyer becomes the owner of the sold property and the seller becomes the owner of the purchase price." This rule is one of the legal effects of a valid contract of sale, and the establishment of ownership over both the subject matter and the price must be continuous and permanent for both contracting parties (in both domestic and international sales). Therefore, the “purchase price” is exchanged with the “sold item,” and the buyer is obligated to pay and fulfill their commitment. Consequently, the purchase price constitutes one of the two fundamental pillars of a sales contract, which may, at times, encounter barriers that alter the execution process of the contract. Such disruptions may lead to termination, annulment, or even the formation of a new contract. These barriers can be voluntary and based on mutual agreement, compulsory or coercive, statutory, or even unforeseeable.
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