Jurisprudence and legal review of factoring (agency) with the right of reference

Agent is a method of financing in which an issuer transfers its receivables to a specific institution so that the latter institution manages, collects, or discounts the receivables. This contract has various types and since the agency contract (factoring) is one of the emerging contracts in Iran and recently some institutions conclude contracts with their customers through this process and since enough researches have not been done in this regard, it is necessary to analyze the types of this contract in the light of the use of jurisprudential and legal rules and principles and to apply it with similar institutions in Imami jurisprudence and the subject law, as well as the legitimacy and illegitimacy of the agency under consideration. This study has entered into the discussion to understand the position of the subject of agency, based on the existing jurisprudential and legal rules with the approach of referring to the opinions of jurists and great authorities. The conclusion is that this contract is not generally contrary to the rules of Imami jurisprudence and the subject law of Iran, and if it encounters a problem somewhere, it is possible to provide a solution to solve that problem so that institutions and banks can use this contract between themselves and their customers. However, it is necessary to study and compare the laws of countries with the law of the agency and consider the jurisprudential and legal principles. The contract should be established and implemented in the country so that those laws can be used whenever necessary.