A Jurisprudential and Legal Analysis of the Nullification of the Purpose of Contract Formation

Civil Law does not include a specific provision regarding the nullification of the purpose of contract formation, and jurisprudential sources have not addressed the issue explicitly either. The present research applies the descriptive-analytical method and aims at analyzing this issue from a jurisprudential and legal standpoint, in order to answer the question whether a general theory can be formulated regarding the impact of nullification of the purpose of contract formation. The findings of the study illustrate that there are instances in jurisprudence, within certain contracts including lease agreements, gardening partnerships (musāqāt), etc., where it can be argued that nullification of the purpose of contract formation has been exemplified. Since the aforementioned instances are not specific, they can be generalized and analyzed within the framework of the theory of nullification of the purpose of contract formation. According to this theory and in respect to the impacts of nullification of the purpose of contract formation, a guarantee of performing dissolution and the establishment of the right to dissolution can be presented within specific frameworks and conditions. However, in exercising the right to dissolve, compensation for the other party’s loss must also be considered.