Extensive developments in information technology have led to the emergence of new types of contracts in the virtual space contracts concluded without the physical presence of the parties which have raised novel issues regarding their dissolution and legal consequences. One of the significant challenges is examining the foundations of dissolving these contracts and comparing the approaches of different legal systems. The present study aims to analyze the foundations and legal effects of virtual contract dissolution from the perspective of Jaʿfari jurisprudence and Common Law, identifying points of convergence and divergence between the two systems. The main research question is: “On what principles is the dissolution of virtual contracts based, and what differences exist regarding its legal consequences?” The findings, obtained through a descriptive-analytical method and a comparative approach, indicate that Jaʿfari jurisprudence grounds contract dissolution on the will of the parties and traditional rules of rescission (fasakh) and annulment (iqalah), allowing it only when there is a legal cause or mutual agreement. This approach emphasizes stability, certainty, and fidelity to contractual obligations while avoiding unnecessary interference in contractual relations. In contrast, English law, particularly in the context of electronic contracts, relies on the doctrine of “fundamental breach,” enabling rapid and automatic dissolution of contracts in the event of a substantial breach, without requiring the consent of the other party or a lengthy proof process. This study demonstrates that while both systems uphold the principle of contractual obligation, they differ significantly in their treatment of exceptions and contract dissolution. These differences highlight the necessity of reviewing and updating domestic regulations to align with the realities of the virtual space and developments in electronic commerce, in a manner that preserves the principles of jurisprudence and fundamental values of Islamic law while facilitating secure and efficient digital transactions.