Analysis of Legal Nature of Transfer of Credit Through Banking System

At first glance، the transfer of credit is a legal action taken between a sender and a receiver of credit through which the receiver is obligated to transfer the monetary value of the payment order to the beneficiary in accordance with the instruction received from the transferor. The sender is also obliged to transfer that money، in addition to the cost of transfer، to the other party. Although، on a primary analysis، a credit transfer is more assimilated to a kind of payment instrument that facilitates transfer of money، it might، on a second consideration، seem to be a sort of payment method. A careful scrutiny of this legal institution proves that none of the current traditional contractual forms could properly illustrate the true nature، features and function of this legal entity. This article shows that the nature of this legal entity could well be justified as a non-defined، innominate contract (Aghd-e Gheir-e Moayyan) subject to Article 10 of the Iranian Civil Code. An attempt to accommodate this contract in the form of a defined and specific contract (Adhd-e Moayyan) stems from the traditional view held by certain Islamic jurists who believe in the non-binding nature of non-defined innominate contracts، an idea which has surely no place in the existing Iranian legal system.