Comparative Comparison of Banking Liquidated Damage on Iran & English Law

Banking liquidated damage, has the same predetermined nature of damage who stipulated into article 230 of civil code and articles from 402 to 405 of commercial code corresponding articles 421 & 422, with the major difference being there is no legal modification and possibility for judicial modification.The parties of the facility contracts canchr('39')t agree contrary to the central bankchr('39')s sovereignty regulation; in fact the principle of the sovereignty of freedom on volition is limited on determination rate of liquidated damage.Accordingly into civil code (n.230) the liquidated damage stipulated in all of the contracts of Iran is lack of “legal adjustment” and is no capable to make “judiciary adjustment”, exceptionally it is capable to make “judicial adjustment” in facility contracts of bank, accordingly the rate that it’s communicated by the central bank. “The Adjustment of the Liquidated Damage” is done on the English facility and non-facility contracts only in the form of judicial adjustment, provided on the Law of Iran the legal, contractual and judicial adjustment for the liquidated damage, is possible proportionate.The method of information-gathering is the library research and the method of research is descriptive and analytical research. The main result of this research is exposition the liquidated damages on banking facility contract plainly, the method of calculating the liquidated damages in banks, department of execution of official deeds, judicial authorities and resolve contradiction of amount owed from their accounting.