Investigating the death of one of parties to the contract and its effect on dissolution of the contract

Siamak Irani, Reza Ranjbar

Abstract


As to effect of death on dissolution of the contract it must be said that “the principle of effect less of the death on dissolution of the contracts” which is deducted from many analytic rudiments. Is based on doctrine of binding and the general rule is that obligations are never the less, in other hand, with a view to principle of “almost every general rule has its exceptions”. There are some exceptions there to ad consensual agreements, personal obligations. Obligations limited to lifetime, finance agreements, contract of marriage, guardianship contract. According to the general principle, in spite of death of one or both parties to the contract, the agreement remains in effect, and the heirs are deemed legal representative in performing remained obligations. But contractual obligations never transfer to the heirs and representative's obligations are limited to patrimony. As to situation of the obligations and contractual effects, supposing that death effects the dissolution,  the parties are cleared form future obligation with annulment of the contract, but the last executed obligations are remained on their shoulder so each party is obliged to pay in exchange of what has been done before annulment.


Keywords


death, dissolution, contract, obligation, principle of binding, consensual agreements.

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