The scope of party's obligation in reaching result in renegotiation in international petroleum contracts

Subject Areas : International Legal Research

ahmadreza asaadinejad ¹ , abdolhosein shiravi ² , Mehdi Montazer ³ , Kourosh jafarpour ⁴

1 - PhD Candidate in Private Law, South Tehran Branch, Islamic Azad University, Tehran, Iran. Email: [e-mail]
2 - Professor, Farabi Campus, University of Tehran, Tehran, Iran. (Author). Email: [e-mail]
3 - Assistant Professor, Department of Private Law, Damavand Branch, Islamic Azad University, Damavand, Iran. Email: [e-mail]
4 - Assistant Professor of Private Law Department, South Tehran Branch, Islamic Azad University, Tehran, Iran. Email: [e-mail]

Received: 2022-05-11 Accepted : 2023-01-26 Published : 2023-03-21

Keywords: Renegotiation, Petroleum Contracts, obligation to means, obligation to result,

Abstract :

Field and Aims: In long-term oil and gas contracts, in order to avoid the disruption of the contractual balance during the long-term implementation of the contract, the condition of renegotiation is foreseen so that by re-negotiating the conditions and how to implement the contract, the disturbed balance will return to the contract. Although the concept of renegotiation, its structure and dimensions have been examined by other researchers, the question has not been answered that whether the inclusion of a renegotiation clause in oil contracts means obliging the parties to reach an agreement? To put it better, renegotiation is usually a commitment to the means or a commitment to the result?Method: This article is written in a descriptive-analytical way.Findings and Conclusions: The inclusion of renegotiation should not be considered merely a formal and formal act, because the purpose of including such a condition is to restore balance to the contract without the need to refer to the judicial system, so if reaching an agreement is not an obligation for the parties to the contract, basically The inclusion of such a condition lacks binding power and simply becomes a time-consuming and futile act, especially when the parties insist on their positions. The results of the studies of this article show that renegotiation is usually a commitment to the result, and the parties should reach an agreement regarding the dispute between them by resorting to such a condition and by observing the good faith of the contract.

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