Interpretation of Contracts with an Approach to the Principle of Istishab

Abstract

This article, through a descriptive-analytical approach, examines the principle of istishab (presumption of continuity) and its application and status within the Civil Code of the Islamic Republic of Iran. It explores how this principle can serve as a tool to assist judicial authorities in interpreting ambiguous and contentious contracts where, after expert examination, no presumptive evidence exists to settle the dispute between the parties. The aim is to uphold public trust, the validity of contracts, and social order. Obligations and contracts have always been present and significant in individuals' lives and in social, economic, and even political relationships. The parties to a contract are bound to adhere to its terms. However, this is not always the case, and the issue of non-performance of obligations arises. The failure to fulfill obligations can occur before, during, or after the execution of a contract. It may be total or partial, delayed, or performed defectively and incompletely. The liabilities arising from non-performance may take various forms and lead to a range of consequences, for which the means of compensation are a matter of legal and jurisprudential debate. The non-fulfillment of obligations and the claim for damages are critical issues that require scrutiny from both jurisprudential and legal perspectives. In such cases, where ambiguity is absent, dispute resolution may be straightforward. However, in the presence of ambiguity, the contract requires interpretation. Interpretation eliminates ambiguity and reveals the parties’ intent. Contracts require interpretation when the contracting parties disagree over one of the clauses or provisions, and upon referring the matter to court, the judiciary is obliged to interpret the contract and uncover the truth. Therefore, the judicial authority needs tools to interpret the law or the contract, relying on appropriate sources. There are numerous tools for interpreting contracts, among them jurisprudential, legal, and usuli (principle-based) instruments.