Judicial and Lawful Study of Compensability of Wasted Profit

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Abstract

After approval of the code of civil procedure in public and revolution courts which note 2 of article 515 of it declared that damage arise from loss of profit is not demandable, in the light of different interpretations introduced about it, position of Iran law about compensability of wasted profits became ambiguous. Because of legal importance of determining scope of compensable damages in context of tort and contract liability more research about grounds and context of that provision is necessary. In order to offering just interpretation from that provision its jurisprudential origin and other statutes related to liability of wasting profits ought to be considered. Position of Imamiyeh jurisprudence about compensability of lost profits and indications of other related provisions dictates this view that from this provision can be followed only impermissibility of demanding loss of profit in context of contractual liability and utmost dining liability for wasting of inconclusive profits and legislator was not about general forbidding compensability of damage arise from loss of profits.

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