Formation of Contractual Joint Venture under Iranian Law

The Fifth Development Plan of I.R. of Iran in Article 107 authorizes the formation “contractual Joint Venture” on the contractual basis and within the known concept of the civil partnership. Despite the contractual nature of joint venture,it has been treated as an incorporated venture by the legislator. This paper begins with looking at the existing laws and regulations regarding contractual joint venture in Iran before the enactment of Fifth Development Plan, and then turns to Article 107 to examine its effects on them. This paper concludes that formation of contractual joint venture and fundamental rules for its operation have already existed in Iran. However, Article 107 could not regulate or facilitate formation of contractual joint ventureefficiently. It seems, in fulfillment of this article, a comprehensive bill should be prepared and presented to the legislator by the executive power.