The Legal Basis for Contract Interpretation Under Iraqi and Iranian Law
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Abstract
This study aims to examine the legal basis for contract interpretation under Iraqi and Iranian law and to analyze the rules and criteria relied upon by judges in ascertaining the parties’ true intentions and determining the meaning of contractual terms. It also examines the role of statutory provisions, Islamic jurisprudence, and custom in the interpretive process, while identifying the similarities and differences between the two legal systems.
The significance of this study lies in assessing the adequacy of the legislative framework governing the interpretation of contracts in both countries and in examining its impact on ensuring the stability of transactions and protecting contractual intent. The study adopts both the descriptive-analytical and comparative approaches by analyzing relevant legal provisions and jurisprudential rules and comparing their application under Iraqi and Iranian law.
The study concludes that both legal systems recognize the importance of the parties’ intentions and customary practice in interpreting contracts. However, Iraqi law is distinguished by the existence of more direct and comprehensive provisions governing contractual interpretation. Iranian law, by contrast, relies on a body of dispersed provisions that operate in conjunction with custom and Islamic jurisprudence. This framework affords judges greater flexibility in addressing ambiguity, omissions, and inconsistencies, while their interpretive authority remains constrained by the requirement not to contravene statutory provisions or alter the substance of the contract.
The study further concludes that there is a need to develop and refine the interpretive rules under both legal systems in order to enhance the clarity and predictability of judicial standards and provide greater protection for legitimate expectations and stability in contractual relationships
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