The Principles and Regulations of Commercial Procedure: An Economic Analysis

Document Type : Research Paper

Authors

1 Professor in Faculty of Law and chairman of Private Law Department of Shahid Beheshti University,Tehran,Iran.

2 PhD. Student in Private Law in the Faculty of Law of Shahid Beheshti University,Tehran,Iran.

Abstract

Features and requirements governing the commercial law demands setting specific principles and regulations for the procedure law in realizing an efficient condition. Among them, some of these principles and regulations concern the necessity of fast and simple proceeding of the commercial disputes such as summary proceeding, provisional execution of judgment and short limitation period in commercial claims, leading to a rise in error costs in making decisions. Some other principles and regulations emphasize on specialized proceeding and regarding the principle of Free Consideration of Proof, which despite reducing the error costs of decision leads to more costly and time consuming proceedings. In order to omit possible inefficiency as a result of applying such principles and regulations, the economic analysis of law suggests a trade-off between proceedings costs, error costs and proceedings delay. Therefore, in order to proceed the commercial lawsuits included in the appearance rule, priority is with summary proceeding and in other lawsuits included in principle of Free Consideration of Proof using certain methods is needed, such as Prejudgment Interest, Alternative Dispute Resolution (ADR), Prejudgment Interest or Settlement Escrow which helps to reduce the number of cases and consequently increases the pace of proceeding.

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References

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Comparative Law Review
Volume 8, Issue 1
Spring & Summer
April 2017
Pages 45-65

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