Detailed Article Abstract: An Analysis of the theory of ‎Unpredictability in Modern French Law and its Place in ‎Iranian Law

The theory of unpredictability originated in French law and has undergone a historical transformation. This theory considers changes in the terms and conditions surrounding contracts. In principle, the parties to a contract declare their wills after considering all matters related to the subject-matter of the contract, and it is their intention not only to take account of the current circumstances, but also to foresee future changes and possible developments. However, the process of fulfilling obligations may be hampered by the occurrence of unpredictable events. In this situation, two scenarios are conceivable: the implementation of obligations may be practically impossible, or it may entail excessive financial costs. The first type is known as force majeure while the second is the subject of the theory of unpredictability, where negotiation to modify the contract is suggested as a solution.In its recent amendments to the Civil Code, the French legislature, while accepting the theory of unpredictability, gives the judge an unfettered discretion for the modification or dissolution of contracts. Article 1195 of the French Civil Code is intended to recognize, as a rule, the modification of contracts in the event of unpredictable conditions that makes performance difficult. This legislative measure has realized one of the aspirations of lawyers because the judicial procedure, and the judge in particular, have not been able to change the contracts, and on the other hand, if such an action is permitted, the security of legal and economic relations in a society will be in danger. French judges, however, now have the necessary authority to modify contracts as a matter of enforcing the rule of law. The law speaks of the difficulty of fulfilling obligations, but does not provide specific criteria for it. It might have been found impossible to suggest criteria because the difficulty of fulfilling obligations varies from one contract to another, and it is the judge that, by examining the surrounding elements and by obtaining expert opinions, can conclude whether there has been difficulties in implementing the contract.In Iranian law, the need to provide for  a modification mechanism is more pressing now after the imposition of unilateral sanctions on international contracts as well as severe economic instabilities due to a variety of factors including the COVID pandemic. Due to the lack of specific legal provisions on contract modification, the courts decide about the modification according to the spirit of the law, general legal principles and the implicit agreement of the parties. Judges of Tehran courts have recently discussed the implementation of continuous contracts affected by the COVID in their meetings, and it has been suggested that if the conditions of force majeure are met, the party in failure should be exempted from the obligations and the compensations provided for the breach in the law or in the contract. The fact that the National COVID Committee has decided to allow the extension of lease agreements with a limited authority being conferred on the lessor to adjust the rent also indicates that the theory of unpredictability is not alien to the Iranian legal system.This article, using descriptive-analytical method, and taking into account the differences in the sources of law between the legal systems of Iran and France, will examine the legal nature of this institution and distinguish it from others. It will address the question whether the proposed solutions contribute to the economic dynamism of the contract law and will conclude that the contract has several economic and legal effects for the parties and these effects are long-term, so the need to modify the contract is paramount. On the other hand, considering that Iranian law is in many ways inspired by French law, this legal system is amenable to this theory on the basis of its general legal principles, although no specific legal text expressly upholds it.