Dissolution of contract not concluded by owner by principal; analytically and critically study on section 252 of civil code

In Islamic jurisprudence, there is not consensus in this respect that if principal is or is not bound to the contract not concluded by owner also about the basis and nature of dissolution of such a contract by principal. Section 252 of civil code, however, says: “it is not necessary that permission or rejection to be instant. If delay may cause the principal to incur a loss, he may dissolve the contract”. According to the section, the principal is considered bound to contract but in respect of dissolution of contract by him when delay by owner may cause a loss to the principal, phrase “dissolution” is used; a phrase which has no exact meaning in Iranian legal system although some jurists consider it as cancellation. In this research, section 252 of civil code concerning being bound of the principal to the contract and its effects also meaning of dissolution of contract, is analytically and critically studied and at the end, an amendment proposition is rendered.