Losses and damages of termination of the lease contract

Losses and damages of termination of the lease contract : According to Iran’s civil law, the rental contract is one of the necessary contracts. This means that the principle is on its validity. In other words, no one can cancel it without a valid reason or the consent of another. For this reason, termination of this contract is possible only with the consent of both parties. Or to cancel it, it must be one of the cases of the right to cancel the existing rental contract. In this article, we will examine the losses and damages of the termination of the rental contract and the way to claim it. Stay with us.

If you need expert advice, our suggestion is Shamaf Neshawreh, the best real estate lawyer in Tehran and other cities. Having enough experience and knowledge, he will choose the best way to claim your rights.

What you will read in the rest of this article
Losses and damages of termination of the lease contract
Losses and damages of termination of the rental contract before delivery
Losses and damages of termination of the rental contract after delivery
Claiming damages for termination of the rental contract
Procedures for claiming damages and termination of the rental contract

Losses and damages of termination of the lease contract

If a person wants to terminate the lease before the end of its term, he must pay damages to the other party. The payment of this damage is determined either in the contract, or if the right of regret is not determined, the proof of damages is determined by the court, and Sepesh gives him the right to claim damages. Therefore, the people whose other party has caused losses to them by terminating the lease contract, should be familiar with how to claim losses and damages for terminating the lease contract.

In this discussion, the most important issue is that these losses can be claimed in circumstances where receiving this damage is foreseen in the rental contract. Or the injured party should try to prove his losses in court. Of course, if the contract is terminated due to a justified reason such as the existence of a defect in the property, the other party who terminates cannot claim damages. The way to claim damages will be through filing a lawsuit and depending on the amount of damage, by referring to the dispute resolution council or legal court.

Losses and damages of termination of the rental contract before delivery
One of the most common questions is that if the lease contract is terminated before the property is delivered, will each of the parties have the right to receive damages?

If any of the parties in the lease contract, either the lessor or the lessee, terminate the contract based on the existence of a valid reason that is included in the law and the contract, it is not possible to receive damages for the termination of the lease contract.

In the case that the leased item has serious defects, in a way that makes it impossible for the other party to use the property, or if the lessor does not hand over the property to the tenant within the stipulated period, or when one of the parties commits fraud in rent and mortgage and leases another’s property to someone, or the existence of one of the cases mentioned in Article 14 of the Landlord and Tenant Relations Law approved in 1356, the other party, due to the termination of the contract, has the right to receive damages does not have.
Also, if one of the parties refuses to perform the actions that he undertakes to perform according to the contract, such as painting or renovating the property, or when one of the parties, according to the terms and text of the rental contract, has the right to terminate his contract. apply, due to the reason for applying the right of termination, the other party does not have the right to receive any damages.
Losses and damages of termination of the rental contract after delivery
In this section, we must say that if the lease contract is terminated after the delivery of the property, due to a defect in the lease, or if the obligation in the contract is not fulfilled by one of the parties, such as renovating and equipping the leased item, it is possible to receive damages from the termination of the contract. There is no lease by the other party. However, if the termination of the contract is due to default, it is possible to claim damages. In the following, we will examine the conditions and characteristics of this discussion.

Claiming damages for termination of the rental contract

Demand in the word means request to receive money. This subject, conditions and features are necessary. The most important conditions and features of claiming damages for termination of the rental contract are as follows:

According to Article 221 of the Civil Code, if a person has promised to do something, but refuses to do it, he is responsible for paying damages. Provided that compensation is specified in the text of the contract. Therefore, according to the mentioned article, one of the most important conditions for claiming damages for the termination of the rental contract is to include in the text of the rental contract, a text with the theme of the right to regret. The right of withdrawal means that each of the parties, if they intend to terminate the contract without a valid reason, can terminate the contract within a certain period by paying a specified amount.
The right of withdrawal must be written in such a way that the duration of the possibility of terminating the contract is determined precisely. Otherwise, some believe that the mentioned condition is invalid.
This is usually done through the court. Mentioning this condition in the contract does not make it possible to demand damages from the other party at the same moment of termination.
In addition to the time when the right to receive damages is foreseen in the text of the contract, in general, based on legal rules, when a person causes damage to another person, he is also responsible for compensating those damages. Of course, the conditions for claiming damages in this case, such as the damages caused by the delay in fulfilling the obligation, require the submission of a petition for claiming damages to the court. In this way, the court, if there are conditions for claiming damages for terminating the rental contract, will order compensation or payment of damages to him. Among the conditions for claiming damages that are not provided in the text of the contract, the following can be mentioned:

Occurrence of a harmful act by the damager

Verifying the occurrence of damages to the injured party
Verifying the causal relationship between the harmful act and the damage
If the court confirms the occurrence of these three conditions, it will issue an order to pay damages and losses regarding the termination of the lease contract. Even if compensation is not stipulated in the text of the contract.

Procedures for claiming damages and termination of the rental contract

In this section, for the purpose of concluding remarks, we point out the steps that we have to take in order to claim damages for the termination of the rental contract. These steps are:

In general, the way to claim these losses by the lessor or tenant first requires the preparation of necessary documents.
Preparing a sample petition and submitting it to the relevant authority
If the amount of damages requested by the petitioner is up to twenty million tomans, the Dispute Resolution Council will deal with it. If it is more than the amount, the court of law has jurisdiction over it.

Get expert advice
You can contact my Vakil Man law firm to receive expert advice from the best lawyers in Iran or refer to the Contact My Vakil section.