Comparative Study on the Nature of Determining a Due Date in Obligations Based on Contracts and Bills (Iran, England, Geneva Convention and UNCITRAL)

Recognition of the nature of agreement is important in determining obligations based on contracts or bills and the enforcements of not fulfilling the agreement and also the enforcements of not fulfilling obligation in due date. In Iranian legal system, the parties’ agreement about the time of fulfilling contractual obligations is done through conditions of description which its enforcement for the violation is that the obligations must be fulfilled at once. Furthermore, the obligation’s due date being condition or not, the enforcement for the violation may be the obligation being canceled or the enforcements set for not fulfilling a contract. In English legal system, an agreement on setting a due date is explained under stipulation, the enforcement of the agreement not being reached is fulfilling the obligation in a reasonable time. In case the obligation is not fulfilled in due date, considering that it is the sub condition or the main condition, the result may be the contract to be cancelled or the right to claims for damages. Because in obligations raised from bills, the parties’ agreement to set the period of fulfilling the contract is of components of obligation, the enforcement in Iranian legal system is nullification of the obligation and in other legal systems (England, Geneva Convention and UNCITRAL) is that the obligation must be fulfilled at once. Furthermore, in case the obligation is not fulfilled in due date, joint and several responsibility of signers of a commercial document may be raised.