Abstract

Accepting the principle of good faith in the pre-contractual period entails certain consequences. Observing this principle would require that the parties cooperate and exchange information by exhibiting utmost honesty, transparency, and seriousness in their preliminary talks towards achieving their mutual goals; and that each party, while respecting the information confidentiality of the other party and refusing to enter into parallel negotiations, shall respect the other party’s interests. The principle of good faith is not explicitly recognized as a general rule in Iran’s statutes. Although the necessity of observing the principle of good faith in all laws and obligations in all instances including the pre-contractual period can be proved using the principle of induction from the criteria stipulated in Article 8, Iran’s Law of Civil Liability (i.e., Law of Torts) as well as other current Iranian regulations, this method would not convince the legal Iranian community to accept the principle of good faith as a general rule. Therefore, social and economic imperatives would necessitate that the principle of good faith should be recognized explicitly in the Iranian statutes.

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