Costs Outside the Scope of the Contract and the Challenges of Their Claims in Oil and Gas Contracting Agreements under Iranian Law
Keywords:
costs outside the scope of the contract, oil and gas contracts, ancillary obligations, Article 220 of the Civil Code, rule of implied permissionAbstract
Costs outside the scope of the contract constitute one of the most challenging issues in the law of oil and gas contracting agreements. Although these costs are not explicitly stipulated in the text of the contracts, the successful implementation of complex oil and gas projects cannot be achieved without incurring them. Using a descriptive–analytical method and relying on the doctrine of ancillary obligations, this article analyzes the legal nature of these costs and explains the foundations for obligating the employer to pay them. The findings indicate that, based on Articles 220 and 225 of the Iranian Civil Code, the Islamic jurisprudential rule of “permission for a thing is permission for its necessities,” and the principle of freedom of contract, costs outside the scope of the contract fall within the category of contractual ancillary obligations. Within the framework of the doctrine of contractual justice, the employer’s obligation to pay these costs is a legal necessity. Finally, practical solutions are proposed for institutionalizing these costs through contractual clauses and alternative dispute resolution mechanisms.
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Copyright (c) 2025 Abbas Kazemi Najafabadi (Author); Mahmoud Jamshidvand
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