The Validity of Transaction by Conduct in High-Value Sale

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Law, University of Qom, Qom, Iran

2 Bachelor’s Student, Faculty of Law, University of Qom, Qom, Iran. Corresponding Author Email: ar.karimi@stu.qom.ac.ir

Abstract

Within the Iranian Civil Law framework, despite several jurisprudential theories concerning the validity of transactions through conduct (Mu'āṭāt), their validity in contracts, including sales, is implicitly grounded upon Articles 191 and 193 and explicitly affirmed in Article 339. The legislator has expressly excluded this general rule only in two instances: marriage and, according to some interpretations, the contract of endowment. Nevertheless, in some cases, including high-value transactions, it needs to be examined whether the adequacy of mere conduct for contract formation is sufficient or not. What emerges from the appearance of Article 339 is that, after mutual agreement between the seller and the buyer in respect of the object of the bargain and its price, the sale is concluded by offer and acceptance “literally” or by exchange “by conduct.” Thus, the sale contract will be concluded and creates ownership, which is one of its effects. At first, this interpretation seems correct, and the absoluteness of Article 339 indicates so. However, in this article, by a profound analysis of sources of Iranian laws, jurisprudence and its philosophy, the important role of custom in shaping and correcting transactions by conduct, rational basis, and Sharia, alongside the denial of the aforementioned wrong interpretation, the necessity of using a declarative act, more than mere conduct, which explicitly indicates the intention of a sale, will be demonstrated

Highlights

  • Affirming the validity of transactions by conduct in high-value sales is inferred in Iranian Civil Law from the apparent meaning and generality of Article 339 of the Civil Code.
  • However, this interpretation seems inaccurate in light of the philosophy of jurisprudence, the logical interpretation of the law, and the significant role of Sharia and custom in shaping transactional concepts and titles.

Referring to these sources as the foundations of Iran’s current legal system reveals that mere conduct is insufficient in high-value sales; instead, the parties must make an offer and acceptance which explicitly indicates the intention of sale so that transactions by conduct get legal validation

Keywords

Main Subjects


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