Obligation in favour of the third party in the Iranian legal system

Abstract

In Article 196 of the Iranian Civil Law, it is stipulated that in transactions, one can insert obligations in favour of the third party, but most of the provisions have not been well-defined. Therefore, jurists have raised a number of questions about this issue. Namely, is there a need for the acceptance of the third party in the obligations? Can the contracting parties relinquish the rights they have created for the third party by revoking the contract? What should be done if the third party refuses to accept the obligations? Or, who would have standing to sue if the undertaker refuses to fulfil the obligations? The methodology for this research is of an analytic and descriptive nature. The authors try to offer answers to the above questions drawing on other legislations and jurisprudential rules.