Statute of Limitations in Commercial Documents in Iranian, Iraqi, and International Law

Abstract

The statute of limitations is a debated and controversial issue in civil law and commercial documents within Iranian law. While this legal institution has significant implications in the legal realm, it remains a subject of ongoing discussion. Accordingly, the present article aims to examine the statute of limitations in commercial documents under Iranian, Iraqi, and international law. This study is descriptive-analytical and employs a library research method to address the research question. Findings indicate that the statute of limitations was removed from Iran’s Civil Procedure Code due to the opinion of the Guardian Council; however, it continues to be applied in specific laws, including commercial law. According to the Commercial Code, commercial documents are subject to a statute of limitations after five years. Nevertheless, the applicability of the statute of limitations under Article 318 of the Commercial Code (1932) regarding the documents mentioned therein does not prevent the claim for their value under the general rules governing personal claims. In other words, if, due to the expiration of the statute of limitations, the payment of commercial documents cannot be demanded from those responsible under specific commercial regulations, this does not preclude the claim for the value of such documents under general legal provisions governing personal claims, such as the Civil Code. Similarly, in Iraq’s Commercial Code, the statute of limitations for commercial claims is recognized as five years. Furthermore, in international instruments, the statute of limitations is acknowledged, though variations exist regarding the commencement and duration of the limitation period across different instruments.