At a glance
A sale and purchase agreement (a contract of sale under Article 338 of Iran's Civil Code) transfers ownership of a specific item for a known price. For goods, specifications, delivery and deferred payments matter most; for property agreements, the status of the title, the date of the official deed and remedies for non-performance.
Sale of goods contracts
- Precise specifications, quality, standards and packaging
- Price, payment method, instalments and their guarantees
- Time, place and cost of delivery and transfer of risk
- Inspection, returns and warranty
- Penalties for late delivery or late payment
Property sale agreements
- Checking the title, any attachment or mortgage before signing
- Price, deposit and payment schedule
- Date and notary office for the official title deed
- Handover date and late-handover penalty
- Termination rights, including for non-payment
- Responsibility for debts, charges and bills up to handover
Common mistakes
Paying most of the price before checking the title, a vague termination clause and no remedy for failing to attend the notary are the most common causes of property disputes.
Frequently asked questions
Yes, it binds the parties, but an official deed is essential to guard against conflicting transactions and to prove ownership against third parties.
Termination is a unilateral act by the party holding a right to terminate, while rescission by agreement (eghaleh) ends the contract with both parties' consent.