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Withdrawal from JCPOA and Compensation for Non-performance of International Commercial Contracts

Ebrahim shoarian- Touraj Jamshidi

Public Law Journal, Volume 22, Issue 69, Spring 2021, Pages 9-33

Content code : 3356  |   Release date : Wednesday, October 28, 2020

Abstract


The United States’ unilateral withdrawal from the JCPOA, as a deal which was the result of the efforts between Iran and the P5+1 to reach a major international agreement, overshadowed the implementation of International commercial contracts due to reinstatement of the sanctions. The return of sanctions, like their establishments, could have made it difficult to fulfill obligations, which actually happened. The question is whether the return of sanctions can be regarded as circumstances precluding State responsibility under titles of force majeure or hardship? And more importantly, could it create liability for compensation for the United States as a third party? To answer the questions posed, analyzing the legal nature of JCPOA, and examining the conditions for the civil liability of states as a violation of an international obligation, is a prerequisite for a convincing answer. In this article, along with analyzing the legal nature of the JCPOA and expressing different views, the legal effect of the sanctions on contracts, including force majeure and hardship is examined and then the liability of the United States is assessed in accordance with international law principles.

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