The study of the nature and legal status of contract of buying the debt considering the jurisprudential measures and banking rules

The legal institution of “debt buying” in the Iranian law system is officially recognized by article 98 of the “fifth program for development law”. This institution with a long jurisprudential precedence is the subject of disagreements in Imamiah jurisprudence. There are serious disagreements about the nature and the legal status of the institution among the Imamiah jurists. These disagreements have led to some doubts about it, and the way of its application is still the subject of controversies. Knowing the consequences of the contract and interpretation of the legal relation between the parties are depending on the accurate legal description and true understanding of its legal status. As to the nature of this legal institution it can be said that it was known as “sale”, but after enacting of the “fifth program for development law” it is described as a definite contract with its special rules and results, although analytically it is still a sale. As to the legal status of the institution after analyzing the different jurisprudential ideas we concluded that the idea of absolute validity of the contract of buying of debt has been the basis of accepting it as a new monetary tool in the banking system by the lawmaker.