Contractual Security: An Analytical Approach to Iranian and English Law with Emphasis on International Instruments

Abstract

Contractual security, as one of the fundamental components of an efficient legal system, plays a crucial role in fostering trust between contracting parties and promoting economic relationships. This study aims to examine the structure and challenges of contractual security through a comparative analysis of Iranian and English law, while also exploring the impact of international instruments—particularly the Principles of International Commercial Contracts and the United Nations Convention on Contracts for the International Sale of Goods (CISG)—in enhancing the architecture of contractual security. The research adopts a descriptive-analytical methodology, drawing on library resources, international legal instruments, and selected judicial precedents. The study first addresses the theoretical and conceptual foundations of contractual security, followed by an analysis of its structural and practical challenges within the legal systems of Iran and England. The findings reveal that the Iranian legal system faces significant gaps in the architecture of contractual security due to regulatory fragmentation, lack of judicial consistency, and weak enforcement mechanisms. In contrast, the English legal system offers greater security for parties by relying on a dynamic body of case law and the primacy of the principle of freedom of contract. Moreover, the adoption of international principles can serve as a reformative model to enhance contractual efficiency in Iran. The paper concludes by recommending that the Iranian legal system strengthen the foundations of contractual security and align with international standards through legislative reform, the development of legal doctrine, and institutional capacity-building.