Document Type : Research Paper
Authors
1 Ph.D. Student in Private Law, Faculty of Law, University of Qom, Qom, Iran
2 Professor, Department of Private Law, Faculty of Law, University of Qom, Qom, Iran
Abstract
This study undertakes a comparative analysis of notices in international sale of goods contracts, contrasting the structured framework of the United Nations Convention on Contracts for the International Sale of Goods (CISG, 1980) with the diverse, context-dependent rules of Iranian law. Notices, defined as formalized communications conveying intent, rights, or obligations, are fundamental to regulating contractual relationships across the formation, performance, and termination phases. Employing a descriptive-analytical methodology and library-based resources, this research examines the CISG’s dual approach—applying the receipt theory for contract formation (Article 24) and the dispatch theory for performance (Article 27)—and compares it with the fragmented framework of Iranian law. The findings highlight the CISG’s cohesive and predictable system, which fosters efficiency in global trade, while Iranian law’s lack of uniformity creates challenges in international transactions, particularly given Iran’s non-accession to the CISG. The study proposes a regulatory framework to align Iranian law with international standards, enhancing its compatibility with global commercial practices.
Under the CISG, notices encompass declarations, requests, warnings, or other communications and are critical at every contractual stage. The CISG adopts a dual approach to notice effectiveness: the receipt theory mandates that formation-related notices reach the addressee to take effect (Article 24), while the dispatch theory shifts the risk of delay or non-delivery to the addressee for performance-related notices sent through appropriate means (Article 27). This dual framework balances certainty during contract formation with operational efficiency during performance, accommodating the dynamic needs of international trade. The CISG permits oral, written, or electronic notices under the principle of informality (Article 11), allowing flexibility unless the parties agree on specific forms or trade usages that dictate otherwise. Electronic notices are recognized if the recipient consents, aligning with modern commercial practices as supported by the United Nations Convention on the Use of Electronic Communications in International Contracts (2005). Effective notices require timely dispatch, precise content, and appropriate communication methods. For instance, notices addressing non-conformity (Article 39) or contract termination (Article 26) must be specific and sent within a reasonable timeframe to preserve rights or trigger obligations, such as liability for damages (Article 74). The CISG distinguishes notice revocability: formation notices can be revoked before receipt, while performance notices are effective upon dispatch. The burden of proof also varies—senders must prove dispatch and receipt for formation notices but only dispatch for performance notices. Judicial interpretations emphasize clarity, specificity, and timeliness, ensuring notices are legally enforceable.
In contrast, Iranian law, grounded in Islamic jurisprudence and the Civil Code, lacks a unified approach to notices, with rules varying by legal act—contracts, unilateral acts, or statutory requirements. In contracts, Article 191 emphasizes the expression of intent, with some jurists endorsing the dispatch theory, where sending an acceptance (e.g., mailing a letter) forms the contract, and subsequent delays do not affect validity. For unilateral acts like termination, Article 449 permits termination without notice, contrasting with the CISG’s requirement for explicit notification (Article 26). Iranian law’s notice formalities are inconsistent: some cases require no notice (e.g., termination), others mandate notice without prescribed forms (e.g., damages under Article 226), and some demand strict written declarations, as seen in the Landlord and Tenant Act of 1977 or the Pre-Sale of Buildings Act. Certain provisions adopt the receipt theory, requiring addressee awareness, such as agent dismissal (Article 680). Notices can also alter legal relationships, shifting a possessor’s status from fiduciary to wrongful (Article 171, Civil Procedure Code). While this flexibility suits domestic contexts, it creates ambiguity in international trade, where predictability is essential. Recent legislation, such as the 2024 Law on Mandatory Registration of Real Estate Transactions, signals a shift toward formal notices, suggesting gradual alignment with global norms.
The CISG’s structured rules on notice timing, content, and methods provide a robust model for international trade, while Iranian law’s variability undermines predictability in cross-border transactions. The CISG’s informality, tempered by contractual or customary requirements, partially aligns with Iranian law’s lack of mandatory forms, but Iran’s inconsistent application of dispatch, receipt, or no-notice theories hinders its global efficacy. To address this, the study proposes: “In international sale contracts, notices must be written unless otherwise agreed. Formation notices are effective upon receipt; performance notices upon dispatch by appropriate means. The addressee bears delay or non-delivery risks during performance, unless otherwise stipulated.” This regulation ensures clarity, preserves contractual freedom, and aligns with the CISG’s risk allocation, facilitating Iran’s integration into global trade.
In conclusion, the CISG’s balanced framework enhances international commerce, while Iranian law’s lack of uniformity limits its effectiveness. The proposed regulation offers a pathway to strengthen Iran’s legal system, fostering coherence and commercial efficacy in global transactions
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