Minimum Damages: An Impediment to Develop Contract Self Performance in Iran's Law

Contract Self Performance is a structure in which, without any need to invoke courts, contracts will be performed. Various components are effective to establish this system which efficient compensation is one of them that may be known through recognition of different kind of damages and proper criteria to evaluate damages. These two components are primary incentives to breach agreements or to perform contractual commitments in party's cost-benefit analysis in a way that if the variety of the accepted damages is more, cost of any breach will be more and if the criteria to evaluate damages is more comprehensive, the breach will be more expensive, however the existing legal rules in Iran's Law and the judicial system approach, accept minimum damages in a way that breach will be assumed as a profitable determination. This matter will impose extraordinary costs on legal and economic system, which may be reduced through through efficient and complete contractual damages.