A New Reflection on the Rejection of Contract

Rejection of contract is a widely used concept in law and jurisprudence which hasn’t been researched comprehensively till now. This research seeks to answer whether the rejection as a mere independent sanction contract entails proprietary rules and effects, or it is subject to the rules and effects of other institutions like termination. Therefore, it is necessary to review exactly the institution and presenting a criterion to distinguish it from other similar concepts in the cases of legislator ambiguity to avoid different and probably strange interpretations in the Iranian system of law. According to the findings of this study the rejection of contract both as to the rules and effects is an independent concept of termination. The main consequence of the independence and the difference of these two institutions is obvious in their retrospective effect. It is worth noting that unlike the termination which has no retrogressive effect, the rejection of the contract affects all previous cases, with the exception that the retrogressive effect is eliminated in the case of ineffectiveness of mara'i due to its contradiction to the rights of third party. To determine a criterion for distinguishing rejection of contract from the other similar institutions, whenever, due to incompetence or any conflict with the third party’s interests, the process of the contract’s effects depends on the satisfaction of one of the two parties (members of that contract) or a third party, it should be interpreted as the right to reject the contract.