Journal of Research and Development in Comparative Law

Journal of Research and Development in Comparative Law

A comparative study of contract simulation in Iranian and French law

Document Type : scientific research paper

Authors
Abbas Ghasemi hamed 1
siamak pakbaz 2
1 professor ot faculty of law، Tehran،Iran
2 PhD student in private law at Shahid Beheshti University، Tehran، Iran
10.22034/law.2025.2064870.1668
Abstract
Contract simulation is an operation by which the co-contracting parties conceal hide from third parties either a part or the integrity of their true agreement. In the operation of simulation, there are two conflicting contracts: an apparent contract that originates from the simulated volition of the parties and a counter-letter that is the result of their internal volition. In fact, simulation of contract is caused by a deliberate conflict between the simulated volition and the internal volition of the parties to a contract. Reform 2016 of the French law of obligations address this issue in articles 1201 and 1202. However, simulation of contract has not yet been recognized in Iranian law and despite the existence of numerous examples of it in practice, neither in civil law nor in judicial procedure, there is no specific literature about it. Simulation of contract constitutes the roundabout of several legal principles. For example, it can be said that this institution is the meeting point of the principle of relativity of contracts, the opposability of the contract to third parties, deliberate conflict between the simulated volition and the internal volition, fraud to the law, Counter-letter and some other legal principles, and it is not possible to address all of them in this article. In the study of simulation of contract in French law, it can be seen that Article 1201 of civil code, in contrast to the counter-letter and the apparent contract, the counter-letter has been recognized as valid between the parties and inopposable to third parties. In Iranian law, it also seems that, given the superiority of internal volition over simulated volition, in the conflict between these two contracts, the counter-letter between the parties will be valid. Regarding the counter-letter, it also seems that the solution of French law should be accepted in Iranian law and declared that the counter-letter is valid in the relationship between the contracting parties of that contract, but this contract cannot be relied upon to the detriment of third parties and may only be invoked to their benefit.
Keywords
Simulation
Internal volition
Simulated volition
Counter-letter
Simulated contract

Subjects

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