Contract Termination Clause and Conditions of Its Actualization in the Iranian Civil Code and Shiite Jurisprudence

The Iranian civil code is mostly influenced by juristic sources and French law. In the article 1234 of French civil code, a legal institution entitled “terminator condition” is included in the causes of discharge of an obligation. The article 264 of Iranian civil code, which deals with description of causes of discharge of an obligation, corresponds to the article 1234 of French civil law. However, it does not mention contract termination clause as one of causes of discharge of an obligation. A question is posed, then, that whether contract termination clause is not in conformity with the Iranian civil code that it is not explicitly accepted. Analysis of the subject and investigation in jurisprudence indicate that should such condition be included in the contract in such a way that it may not cause ignorance with regard to the contract conditions, it would not principally contradict Iranian legal system. The present essay deals with validity of contract termination clause in Shiite jurisprudence and Iranian civil law as well as conditions of its actualization