Procedure & Regularity for Accuracy, True Dispute Resolution and Happiness

The Theory of the Constituent Elements of Legal Rights and a Critique of Label-Based Adjudication: A Critical Reading of the Jurisprudence of the Third Chamber of the Supreme Court in Light of Cassation Decisions

Document Type : Original Article

Author

Associate Professor of Private Law Faculty of Law and Political Sciences University of Tehran

Abstract
On the standard for recognizing rights in disputes over key-money and business goodwill, Iranian judicial practice has divided. Some rulings infer the right from the label in the contract or claim, others from the actual cause of the relationship. The view defended here, on the basis of a critical reading of two cassation rulings of the Third Chamber of Iran's Supreme Court, rests on distinguishing a contractual cause for sarqofli, provided in Articles 190 and 191 of the Civil Code, from a statutory cause for business goodwill, provided in the 1977 Tenancy Act. On this basis, the Third Chamber, by separating that Act from its 1997 successor, is shown to refuse treating payment as inherently rights-generating, tying its effect instead to the function it serves within the relationship. The temporal element in business goodwill, the independence of the settlement contract (solh) from the lease, and the boundary of cassation review under Articles 366 and 370 of the Code of Civil Procedure bear out this reading. The costs of the approach, in transactional security and divergent rulings, are examined and shown not to invalidate the cause standard but to point toward its refinement through unifying precedent.

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Volume 2, Special Number
Commemorative Volume Honoring His Excellency The Judge Hassan Ghaffarpour Maraghi President of 3rd Branch of the Supreme Court, Iran
2026

  • Receive Date 21 September 2026
  • Accept Date 26 September 2026
  • Publish Date 23 October 2026