Document Type : Research Paper
Authors
1
Professor, Law Department, University of Tehran, Iran
2
Ph.D Candidate in private law, Allameh Tabatabaei University, Tehran, Iran
3
. Ph.D Candidate in private law, University of Tehran, Iran
10.22034/law.2025.60361.3364
Abstract
As a result of delay in fulfilling monetary obligations, on one hand, the value of money decreases in proportion to the passage of time, and on the other hand, the creditor is deprived of enjoying the benefits of money during the period of delay, and in this regard, suffers losses. Both types of damages are referred to as late payment damages in the Iranian legal system, but late payment damages in their true sense are the latter type. According to Article 522 of the Iranian Civil Procedure Code, only damages resulting from the devaluation of currency and up to the inflation rate can be compensated, but according to the decision as a unify judicial procedure No. 805 of the Supreme Court, an agreement on compensation for late payment damages in an amount exceeding the inflation rate has been prescribed. Therefore, the possibility of compensating for late payment in its true sense (including objective damages in general, personal damages with proof of the debtor's fault and the amount of the loss incurred, and unpredictable damages with proof of the debtor's malicious intent) has been provided through the agreement of the parties. In English legal system, after moving from the stage of impossibility of paying the excess amount of the debt and accepting the possibility of paying damages for late payment in monetary debts, in the assumption that the parties to the contract directly specify the amount of damages for late payment, it will not be valid if that amount is taken a criminal aspect and is considered a so-called criminal condition. In Iranian law, based on the decision as a unify judicial procedure No. 805 and the principle of non-harm, the amount determined must not be inconsistent with mandatory regulations; So the condition for late payment damages that is unreasonable (imposed condition), can be considered invalid due to its conflict with public order and Being usurious; in other words, the parties are free to determine the amount of damages for late payment to the extent that the term is claiming damage in its true sense, not usury.
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