establish order and prevent chaos, the existence of laws and a clear framework is essential. The absence of laws leads to disorder and subjectivity in the administration of justice, resulting in the violation of many individuals’ rights. The presence of laws in every field and subject ensures consistency in court rulings and provides peace of mind for members of society.
Commerce and commercial transactions have existed since ancient times, and a segment of the population has always been engaged in trade across the globe. In fact, commerce and trade are inseparable components of human relationships and societies. Today, countries recognize the importance of trade and understand the necessity of having laws and regulations governing commercial transactions. Accordingly, any complaint or legal claim related to commercial matters can only be addressed within the framework of commercial law.
Therefore, in this article, we will examine the history of commercial law and then explain what Iranian commercial law is, along with its structure and provisions. If you have questions about commercial law or its provisions, stay with us.
History of Commercial Law
To answer the question of what Iranian commercial law is and how its provisions are structured, it is necessary to become familiar with its history. Before the enactment of commercial law, religious principles (Sharia) and the civil code governed commercial relationships and transactions. When disputes arose in commercial matters, they were resolved by referring to Sharia and the civil code.
The first commercial law in Iran was enacted in 1924 (1303 in the Persian calendar). This law consisted of 378 articles but was repealed in 1932 (1311), and a new law replaced it in April of the same year. This law was modeled after France’s 1807 Commercial Code. In 1967 (1347), out of necessity, a new law comprising 300 articles related to joint-stock companies was passed, replacing Articles 21 to 93 of the 1932 law.
What is Commercial Law?
In the previous section, we explained the history of Iranian commercial law and the basis on which it was developed. In this section, we aim to explore the question: What is Iranian commercial law, and what are its applications? The fundamental purpose of law is to ensure the fair administration of justice, establish security, and protect the rights and freedoms of individuals. If decisions regarding various issues are made arbitrarily and individuals cannot predict the outcomes of their actions, security will be lost, and chaos will ensue. One area where the need for law is strongly felt is in commercial matters.
Today, commerce is an inseparable and integral part of human societies, and many people identify themselves as traders, considering trade their primary occupation. Commercial law is the set of rules and regulations governing commercial activities, including decision-making on commercial matters, types of bankruptcy, and other trade-related issues. Decisions in these areas are made by referring to this law.
Thus, commercial law is the most important legal framework for commercial matters and issues related to merchants. This law was translated and adapted based on France’s Commercial Code. However, many legal experts believe that, aside from the section on joint-stock companies, this law contains significant ambiguities and deficiencies, often confusing.
