Effects of the Disclaimer or Limitation of Liability Clauses in Iranian Law with a Review in the English Legal System

In this article we will study effects of the clause for eliminate or reduce liability in relations between two parties, and also with third parties. This type of clause reduces or eliminates contractual liability of the agent of damage, except in cases of violation of public order that this clause will be considered invalid. These clauses are effective in the tortious liability, provided that the clause is expressly encompassed the fault and does not violate a jus cogens; this theory has been accepted also in the English Law. In relation to the third parties, the agent of damage who is the successor in the contract, could reliance on the exclusion clause against the aggrieved party, based on the theory of “Third-party beneficiary” or “subrogation”. The exclusion clause should be reliable on against third parties who can't prove the fault of the agent of damage, except by reference to the contract.