Economic fluctuations and their effects on the obligations of traders (From the point of view of Imami jurisprudence)

In the current situation, contracts and obligations have been severely affected by the economic conditions of the country, and the increasing price and instability in the market has led to severe losses to the obligor, which must compensate. However, sometimes it is not possible to accurately fulfill the commitment due to the passage of time and unpredictable changes. It may put the obligor in unbearable difficulty and plunge him into the abyss of economic collapse. The question now is whether the commitment of these people is still binding in the face of severe economic fluctuations, or whether it can be changed in the face of changing circumstances. In some cases, sharp price fluctuations make it impossible for contracts to survive, and due to the unfair possession of the other party, it is a good basis for modifying the contract, and given that in the Iranian legal system, the principle of necessity of contracts prevails, we can Jurisprudential principles such as the rule of hardship, the rule of no harm and the rule of gross fraud reviewed the provisions of the contract concluded between the parties. However, in some courts, this process is considered a conversion of an obligation and its modification is not allowed; However, due to unpredictable events, the provisions of the contract can be reviewed and a clear and explicit solution can be provided in these cases based on jurisprudential rules, and the contract can be adjusted due to significant benefits, including compliance with the partieschr('39') wishes and commercial realities in long contracts. Duration is preferable to termination. Certainly, the judge also considers the unjust loss to the obligor, which has caused unconventional difficulties and hardships with the implementation of the contract. Therefore, in such cases, the implementation of jurisprudential rules is a suitable solution to maintain and modify the contract or in some cases to terminate the contract.