Document Type : Original Article
Authors
1
Master of International Law, South Tehran Branch, Islamic Azad University, Tehran, Iran.
2
Associate Professor, Department of Private Law, University of Tehran, Tehran, Iran.
10.22080/jpir.2026.30872.1531
Abstract
This study examines the concept of “legal Certainty of contracts” by analyzing the legal framework governing Iran’s electricity export contracts under economic sanctions, with electricity exports to Iraq as a case study. The main research question concerns how sanctions affect contractual structures, performance of obligations, and dispute resolution mechanisms in Iran-Iraq electricity agreements. The hypothesis is that sanctions, by weakening international payment systems, creating uncertainty in contractual obligations, and restricting access to international arbitration, reduce the legal security of such contracts. Using a descriptive-analytical method and drawing on contract law principles, party autonomy, pacta sunt servanda, and force majeure in the context of economic sanctions, the study finds that sanctions disrupt payment and revenue transfer mechanisms, weaken effective contract enforcement, and increase legal disputes. Uncertainty regarding the applicability of sanctions as force majeure further complicates dispute resolution and undermines mutual trust. In addition, aging transmission networks, energy losses, weak technical coordination across border grids, and regional political risks hinder sustainable electricity exports. The findings indicate that strengthening legal security requires clear sanction-adapted contractual provisions, regional arbitration mechanisms, alternative payment systems, upgraded infrastructure, and specialized Iran-Iraq cooperation, supported by resilient legal frameworks, coordinated policies, and mutual trust.
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