Damages Caused by the Non-Entitlement of the Seller's Income in the Laws of Iran and England

Abstract

This research examines the concept of seller's warranty in transferring ownership of goods during a sale contract. In Iranian law (Article 362 of the Civil Code), a seller guarantees ownership of the sold item and the right price. However, ambiguity exists regarding compensation for the buyer if the seller lacks ownership. A landmark court decision (consensus decision of 811) allowed the buyer to claim the difference in price due to inflation (in cases of seller ignorance) based on similar goods. This decision considered principles outside the Civil Code and the 2000 General and Revolutionary Law of Civil Affairs. In English law (Sale of Goods Act 1979, Section 12(1)), the seller has a primary obligation to transfer ownership to the buyer. The aim of this research (descriptive-analytical method) is to compare remedies for a seller's wrongful transfer under Iranian law, particularly considering decision 811.The research seeks to establish a clear basis for seller liability in compensating the buyer. This would create a unified and consistent legal system for compensating damages suffered by wronged parties. Ultimately, the research aims to identify the most effective method of compensation that restores the buyer's position to pre-damage conditions. Based on the research findings, determining damages based on the price at the time of sale is found to be a suitable solution for compensating the buyer.