Pages: 33-44

Abstract

Contracts are sometimes dissolved for numerous reasons. Dissolving condition is a reason of contracts’ dissolution. Based thereon, the parties set as a condition that the contract is revoked when a certain thing occurs or when a certain action is done or left undone. In this case, the actualization of the pending condition provides for the contract cancellation. The revocation cause is volitional in these cases but it appears in an obligatory form resultantly. There are doubts regarding the accuracy of dissolving condition the accuracy of which can be concluded based on the principle of authenticity, famous prophetic HADITH and narratives pertinent to conditional sales. The term of the dissolving condition should be clear and specified. Moreover, it is not possible to insert it in all contracts. The parties should avoid doing anything contradicting the other party’s rights during the period of time the dissolving condition holds. In Iran’s laws, article 264 of civil law expresses the means of obligations’ termination but it has not made any reference to the cancellation condition while paragraph 8 of article 1334 of France’s civil law points out this provision as a means of obligations’ termination and, apparently, the aforesaid article, has been the source of Iranian civil law compilers in codification of article 264 of civil law.