Claim for Compelling Performance of Contractual Obligations
When a contract is concluded between two parties, each expects the obligations arising from it to be properly performed. In fact, the execution of contractual obligations constitutes the primary and most essential purpose of entering into a contract. If one party fails to comply with its obligations, the other party is entitled to request the enforcement of those obligations through legal means.
This principle holds that a contract is not automatically terminated solely because of non-performance by one party. Rather, if the obligated party fails to perform even after being legally compelled to do so, an appropriate legal decision will then be made regarding the contract.
For example, a person may undertake, under a contract, to repair your house within a specified period of time.
If that person fails to fulfill their obligation and does not repair the house, you may file a legal claim for compelling performance of the obligation before the court. The court will review the contract and issue a decision based on your claim.
Filing the Claim and Judicial Review Process
Competent Court
If the value of the obligation is less than twenty million tomans, the Dispute Resolution Council has jurisdiction to hear the claim for compelling performance of the obligation. However, if the value exceeds twenty million tomans, the claim must be filed before the civil courts.
Monetary and Non-Monetary Subject Matter of the Contract
The subject of an obligation may be monetary or non-monetary. When the obligation involves property or financial value, the claim will be considered a monetary claim. Such property may be movable or immovable.
When the subject of the obligation involves immovable property, the competent court is the court located in the jurisdiction where the immovable property is situated.
For example, two individuals enter into a contract to purchase a house in Shiraz, while the seller resides in Tehran and the buyer resides in Hamedan. Under the contract, the buyer undertakes to pay the purchase price within the agreed time, and the seller undertakes to deliver the house within the specified period.
If the buyer fulfills their obligation by paying the purchase price, but the seller fails to deliver the property, the buyer may file a claim for compelling performance against the seller. Since the contract concerns immovable property, the buyer must file the claim with the court having jurisdiction over the property’s location, which, in this example, is Shiraz.
After reviewing the contract, its terms, and the parties’ obligations, the court will determine compensation for delay in delivery and enforce the judgment compelling performance of the obligation. The entitled party must expressly claim compensation for non-performance.
Compelling Performance of Non-Monetary Obligations
Compelling performance of non-monetary obligations applies to obligations to perform an act and obligations to refrain from performing an act.
Obligation to Perform an Act
In this type of obligation, two parties agree on a non-monetary commitment under which one party undertakes to perform a specific act for the other within a defined period.
If the obligated party fails to perform the act, the other party may file a claim for compelling performance of the obligation before the court.
Obligation to Refrain from an Act
The subject of this obligation is refraining from performing a specific act. For example, a person leases a garden to another individual, and the tenant undertakes not to damage or cut the trees during the lease period. If the tenant violates this obligation, the tenant shall be required to compensate for any damages incurred.
Compelling Performance of Contractual Obligations
The purpose of such contracts is to ensure the performance of contractual obligations and the execution of the agreement’s subject matter. Once a contract is concluded between two parties, neither party may refuse to perform the obligations arising from it.
If either party fails to fulfill its obligations, the other party may file a claim for compelling performance of the obligation. In such cases, if a person does not voluntarily perform their contractual obligations, the court may legally compel them to do so.
Frequently Asked Questions Regarding Claims for Compelling Performance of Obligations
It is a legal claim filed when one party to a contract fails to fulfill its obligations, allowing the other party to seek a court order compelling performance of those obligations.
If the value of the obligation is less than twenty million tomans, the Dispute Resolution Council has jurisdiction. If the value exceeds this amount, the competent civil courts have jurisdiction.
For immovable property, such as land or buildings, the claim must be filed with the court where the property is situated. The court will review the contract and issue decisions regarding enforcement and damages. What is a claim for compelling performance of an obligation?
Which court has jurisdiction over such claims?
How is jurisdiction determined for immovable property claims?
