Executive Problems of Contract of Reward and Secondary Contract of Reward in Iran's Banking System and Legal Analysis of Its Executive Instructions with Emphasis on Imam Khomeini's Viewpoints

Payment in the form of Contract of Reward and Secondary Contract of Reward is among the most prevalent methods in banking system. Given the nature of contract of reward and secondary contract of reward in the civil code and in Imamiya jurisprudence, the question that is raised is: How far is the nature of contract of reward capable of utilization in the banking system? In fact, according to general rules governing the contracts, one of the conditions for correctness of a deal is that the exchanged items of a contract must be clear and definite. In the contract of reward, brief knowledge of the exchanged items is enough. Even the reward can be set based on sharing of the gained benefit. In this regard, one can conclude from Imam Khomeini’s Tahrir ul-Wasilah that the contract of reward can have the results of Limited Partnership (Muzaribah) while lacking its limitations. On the other hand, lack of duration of the contract does not harm the conditions of correctness of the reward of contract. The contract of reward is correct in any permissible and rational act. Therefore, it is applicable in industrial, commercial, agricultural and services sectors. This is why it has found a special place in usury-free banking system. However, the contract of reward mentioned in the Executive Instruction of the Usury-free Banking Law has some problems. The present article is an attempt to identify and analyze these problems.