Foundations and Conditions of Civil Liability in Compensating Loss of Profit in Iran and France Law

Abstract

The primary purpose of establishing civil liability rules is to compensate for damages and prevent harm to individuals. A fundamental question in this regard is whether “loss of profit”—meaning the deprivation of an individual from a certain benefit—can be recognized as compensable damage. The present study was conducted with the aim of elucidating the theoretical foundations of civil liability and examining the conditions for its realization concerning compensation for loss of profit in the legal systems of Iran and France. The research method was descriptive–analytical and based on library sources, and it sought, through a comparative approach, to clarify the legal status of this type of damage. The findings indicate that although the principle of full compensation is accepted in Iranian law, and doctrines such as La Zarar (no harm), Etlaf (destruction), and Tasbib (causation) imply the compensability of loss of profit, Article 515, Note 2 of the Civil Procedure Code of Iran and certain judicial rulings have imposed restrictions. In contrast, in French law, following the 2016 reforms to the French Civil Code, certain loss of profit has been explicitly recognized as compensable damage, although a distinction is drawn between certain profit and merely possible opportunities. The overall conclusion of the study is that both legal systems acknowledge the compensability of certain loss of profit; however, the Iranian legal system, due to legislative ambiguity and conflicting judicial practices, requires reform and legislative clarification.