legal Analysis of The Structure and Validity of Future Contract

future contract is one of the financial derivative instruments the public offering of which in Iranian capital market has been recently begun on a limited level by virtue of section 1(11) of Securities Market Act 1384. Recognizing the necessity of making lawyers acquaint with such new financial instruments, this article seeks to analyze the function of guarantee deposit, the position of exchange house and the ways to terminate such contract. Moreover, the explanation of nature and validity of the contract will be contemplated in this article. The explanation of nature of future contracts on the basis of section 10 of Iranian civil code and the reject of and answering to some criticisms raised in respect of this kind of transactions such as their deviation from the philosophy, the lack of any incentive to the delivery and take-over, being such transactions as a Kali Be Kali one (as named in Islamic law) and their being as a gambling transaction, may be noted as this article’s results.