The Legal Status of Unauthorized Contracts and Its Basis in the Laws of England, France, Germany and Iran

The legal status of unauthorized contracts is one of the different points between Iranian law, on one side and English, French and German law on the other. The unauthorized contracts are always ineffective in Iranian law and not absolutely void, but in English, French and German law, these contracts are sometimes effective and complete. There are some bases behind these provisions. The most important bases of these provisions are promotion of trade, recognition of possession as the creator of property, and respect to good faith of buyer. Conversely, in Iranian law, the most important basis of non-voidance of unauthorized contracts is the causality of considerations in the creation of contract.