Pacta Sunt Servanda in Contract with Non-Muslim (A Comparative Study in Islamic Jurisprudence and Iran's Law)

Every day, several contracts are concluded in economic, commercial and political fields, the fulfillment and performance of which is not only a moral matter but also a social necessity. On the other hand, there is no doubt that religion has entered into some areas of law and has created differences between Muslims and non-Muslims. Although these differences can sometimes be questioned and criticized, but they have been reflected in Iran's Law according to Fiqh (Islamic Jurisprudence). The main question of this Article is whether this ideological difference has penetrated to the contracts or this field is free from religion interference. Islamic jurists unanimously consider it necessary to adhere to the contracts between Muslims and different sects of non-Muslims (even military enemies). Also they allow contract withdrawal only in special cases and under limited conditions. This Article shows that even the subject of the contract does not make a difference, whether it is related to economic, commercial and civil affairs or political affairs such as war and peace. Moreover it will be understood that breach of contract and unilateral withdrawal are so confined. Among the limited cases that breach of contracts would be justifiable; there is "reciprocal breach", which has been mentioned in Quran. This type of breach is recognized in international law and CISG, but not in Islamic Jurisprudence and Iranian contract law. Therefore Iran's Law is inefficient in this regard. In this Article the above mentioned breach will be recognized implicitly and it will be concluded that it might be necessary to consider "reciprocal breach" in Iranian contract law.