Comparative Study of Frustration of Contracts ‎in Upstream Oil and Gas Contracts in Iran and ‎Common-law Legal Systems

Document Type : ISI

Authors

1 PhD of oil and gas law, faculty of law and political science, university of ‎Tehran, Tehran, Iran ‎

2 Assistant professor, law department, Tehran Faculty of Petroleum, ‎Petroleum University of Technology, Tehran, Iran ‎

3 MA in private law, faculty of law, Persian Gulf International Education ‎Center, khoramshahr‎

Abstract

Upstream oil and gas contracts are of the most important public contracts that have technical, economic, social, legal, financial, political and environmental aspects and are concluded for investing in and oil operations in exploration, development and production. The contract may be hindered or stopped because of contractual excuses. In this study, by studying the upstream oil contracts in the Iranian legal system and common-law, we have examined the frustration of the contract from the perspective of concept and basis, conditions and effects and guarantee of the performance of this excuse. The results show that frustration of the contract is recognized as the most important contractual excuse in the upstream contracts concluded in the common-law legal system. In the Iranian legal system, the frustration of contracts is not recognized with terms and characteristics of the common law system, but examples can be found that are similar to contractual excuses in the upstream contracts of the oil and gas industry. The nature and special features of these contracts make the legal management of the contract to be the main priority of the parties to continue the life of the contract and the effects and guarantees of contract frustration are adjusted according to the specific characteristics of these contracts and different forms of general non-oil contracts.

Keywords

References

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Journal Of Researches Energy Law Studies
Volume 8, Issue 1
July 2022
Pages 155-171

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