Reliance Theory and Its Impact on Agency Law (A Discussion in Iranian and European Law)

The rules of Iranian civil law in relation with agency are in a manner that have lessened the efficiency of this legal mechanism and have extremely loosen the validity and stability of the contracts based upon agencies. Putting too much recognizance on Will Theory and being satisfied by its inevitable results lead to these lacks. It is not always easy to legitimize the situation in which people, without being responsible, can apparently under their own names and actually on the behalf of someone else make a contract and based on such an excuse flinch their commitments orpretend to have a position they do not have and introduce themselves recklessly the agents of other people and encourage others to make unreliable contracts. Moreover, according to the results of the contact, it is not easily legitimizing to exonerate someone who prepared the bases through which other people trust a third person as an agent and based on this fact, they are encouraged to make a contract with a Apparent agent. This is also a subsequent of too much recognizance on Will Theory. On the contrary, Reliance Theory, concentrating on the necessity of satisfying the legal expectations of people, prevents the opportunistic behaviors and provide a logical and reasonable base in a way that while avoiding the lacks of Free Will Theory, make stability, efficiency and security avaiable in agency relations.