Delay in Payment Damages in the Necessity of Protecting Public and Private Rights Based on Islamic Jurisprudence

Abstract

Damages refer to the harm caused to the other party as a result of failure to perform a commitment on time. According to Articles 221 and 228 of the Iranian Civil Code, if one person commits to doing or not doing something for another and fails to fulfill this commitment, they are responsible for compensating the damages. The principle of the necessity of contracts means that once a contract is concluded, its provisions are binding and enforceable for both parties, who are required to adhere to its terms (Article 219 of the Civil Code). A penalty clause, or the concept of compensation for the failure to perform an obligation, and delay in the performance of an obligation, serves as an enforcement mechanism to pressure and compel the opposite party to fulfill the contract and execute its terms. Findings indicate that damages for failure to fulfill a commitment are a last resort. Therefore, Article 230 of the Civil Code confirms this necessity by stating that contracts not only compel the parties to execute the obligations explicitly stated in the contract but also bind them to all the results arising from custom, habit, or law due to the contract. It appears that delay in payment damages in Iranian law, based on the opinions of most Shiite jurists, is accepted and, in judicial practice, is recognized by courts as a means of compensating damages.