The legal consequences of breach of contract in Iraqi civil law - a comparative study

Abstract

This research examines the legal consequences of breach of contract in Iraqi civil law. It analyzes the general rules governing penalties for non-performance, particularly specific performance, termination, and compensation, highlighting the effectiveness of these penalties in providing contractual protection for the creditor. The research focuses on the legal basis for compensation as the most prominent civil penalty for breach, and the extent of its correlation with contract termination. It also explores instances where civil liability is negated by an external cause, such as force majeure or the fault of a third party. Furthermore, the research addresses the extinction of the obligation and the dissolution of the contract as legal consequences of breach of contract. It clarifies the positions of Iraqi legislation and jurisprudence on termination and dissolution, and the limits of judicial authority in assessing the resulting compensation. The study employs an analytical and comparative approach, comparing the Iraqi position with several comparative legal systems, particularly French and Anglo-American law, to identify shortcomings and differences. The research concluded that Iraqi civil law still adopts a traditional view that prioritizes termination over compensation, which limits the flexibility of contractual penalties. It recommended the need to develop the legislative and judicial organization of compensation and to incorporate modern economic considerations of the contract, in order to achieve contractual justice and stability in transactions