General Theory of Financial Contracts in Monetary System

Bank and monetary system are the issues of Modernization and industrialization. Implementing some terms and conditions to contracts is one the solutions to make nominal contracts compatible and up-to-date regarding developments in modern societies. Since the nominate contracts were created and legislated centuries ago, modern societies are sometimes challenged to cover their needs in those formats. To solve these challenges, one solution is to recourse the principle of contractual freedom. As a result, numerous modern contracts have been made in the name of innominate contracts in the current Iranian system. The second solution is to legislate new specific or nominated contracts, such as insurance contracts and labor contracts. The third solution is to recourse the condition theory, in this sense, by means of implementing some terms in the contract, we can update the same past nominate contracts, according to the needs of the day. This method has been widely used in financial markets, especially the monetary and banking markets. In this paper it has been attempted to explain the legal inefficiencies of this theory in financial contracts and suggest an optimal solution