The Doctrine of Executive Necessity in Government Transactions and Distinguishing It from Similar Concepts: A Comparative Study of Iranian Legal System and Common Law

Governments and governmental organizations have special privileges in concluding contracts to provide the public needs and protect the public interests. One of the privileges that is often addressed in Common Law systems and Commonwealth countries, and it stems from the sovereign power of the government to serve the public interests, is the “doctrine of executive necessity”. The doctrine embodies that, the government may terminate the contract without paying compensation due to some necessities such as policy changes in safeguarding public interests.  By singling out the doctrine of executive necessity from similar concepts such as termination by convenience, nationalization, expropriation and force majeure and with having an analytic view in government contracts institution in legal system of Iran and by examining related Acts and Regulations, the existing gaps will be revealed and a proposal will be made to legalize government activities under the contract.