Scientific Journal of Law and Modern Studies

Scientific Journal of Law and Modern Studies

Legal investigation of financial-economic Effects of contract termination and revocation in contracting contracts

Document Type : Research Article

Authors
Iraj Goalbtounchi 1
Kourosh Jafarpour 2
1 Master of law in financial-economic, Islamic Azad University, South Tehran branch. (corresponding author)
2 Assistant professor of department of law, faculty of law and political science, Islamic Azad University, South Tehran branch.
Abstract
Construction contracts consist of high level of tasks and financial commitments, complex technical, legal and economic issues. With signing these type of contracts, various obligations are formed between two parties and even third one. The large volume of financial transaction is possibly made and performance of the parties in regard to fulfil the scope of the contract can have many financial-economic, technical and legal effects for the obligees, third parties, beneficiaries, users and the entire society and macroeconomics of the country. The common aspect between construction contracts is their text generally follow the specific and uniform conditions. In this uniform conditions, right to terminate or cancellation as a cause of dissolving the contract has always been at the center of attention. Based on this, in case of fulfillment of the special conditions listed in the contract; The agreement or contract is terminated and the termination of the contract has effects that will be effectuate after exercising the right to termination. It is worth mentioning in construction contracts, the relations between two sides is not limited to regulation of contract's obligations and rules, but beyond that, the implementation of these obligations and rules should also be considered from a legal perspective. Therefore, this research accurately and concisely shows what the conditions for termination of the contract are in different types of internal and international construction contracts, and illustrates the legal-financial and economic consequences of exercising the right to terminate in these types of contracts.
Keywords
Civil Construction Contracts
Contract Agreement
Termination
Revocation
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  • Receive Date 29 November 2022
  • Revise Date 04 January 2023
  • Accept Date 09 February 2023