Methods of Compensation

Yousef Yaghoubi Mahmoudabadi, Mansour Amini


Compensating for a loss is among the most fundamental objectives of every legal system. There are various methods for compensation and they are placed into two sets of objective and cash payment compensation. In some of the legal systems such as Iran’s there is an order observed between these two methods that means firstly the objective compensation is applied due to restitution to a prior situation and being closer to the just and fair procedures and in case of existent excuses cash payment is utilized. Because the objective method of compensation has shortcomings, it is no deemed as superior in our legal system and the legislator in the article 3 of the civil liabilities gives the judge the discretion to determine the method of compensation. England law puts its basis on cash or pecuniary payment and objective method is considered as an exception. The criterion time for compensation in Iran’s law is the remittance time. In our legal system sentencing to pay compensation for a loss should be in advance and at once, other than exceptional cases such as physical damages where the judge has the option of reconsideration of the sentence up to two years since the date the verdict has been issued based on article 5 of civil liability Act. The situation is the same in England system and the axiom of once and for all is useful in the same issue and only in case a new cause appears a possibility for reclaiming compensation for a loss may arise.

Keywords: objective compensation, pecuniary payment, recompensing the exact property, remittance time, property restitution 

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