Paying the fair daily price of goodwill in the balance of justice: Validity of paying the value of goodwill at the daily rate in the Landlord and Tenant Relations Law of 1376

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Jafari Nasrolah; Yazdani Tayebe

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Journal Paper

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Journal: JUDGMENT Year:2023 | Volume:23 | Issue:3 (پیاپی 115) Page(s): 69-83

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Title

Paying the fair daily price of goodwill in the balance of justice: Validity of paying the value of goodwill at the daily rate in the Landlord and Tenant Relations Law of 1376

Author(s)

Jafari Nasrolah | Yazdani Tayebe | Issue Writer Certificate

Keywords

Goodwill

occupational rights

fair market rate

waiver of rights

Abstract

In Chapter Two of the Landlord and Tenant Law of 1997, the legislator, in an effort to legitimize the institution of goodwill and drawing from Imam Khomeini's Tahrir al-Wasilah, has recognized this right. Accordingly, the tenant may negotiate with the landlord to gain privileges such as the right of priority in leasing. Just as the acquisition of these privileges, known as goodwill, is based on mutual agreement, its transfer and waiver must also be agreed upon. Article 6, Note 2 of the said law states: "If the landlord transfers the goodwill to the tenant through legitimate Sharia means, the tenant is entitled to demand the goodwill at its fair market value upon vacating the premises." In this regard, the authors, based on substantial reasoning, believe that unlike the previous law, the creation, transfer, and waiver of legitimate goodwill are solely based on the agreement of the parties. Demanding the goodwill value as a legal obligation at a fair market rate is unjust and leads to the infringement of both landlord and tenant rights.

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