Open Price for Iran: The Bases for Reform

Abstract

The rules of sale contract in many countries allow parties to conclude a contract without specifying the price at the time of formation. Such contracts are called open price sale (sale of goods) contracts and are of the needs of modern trade methods. As a result, parties enjoy the freedom to conclude their contract without contractual risks. The problem, however, is that under the Iranian rules on sale contracts, these possibilities do not exist. Such treatment by Iranian legislators on the issue of price in a sale contract has caused problems in national and transactional level. Adopting a doctrinal research method, the first aim of this study is to perform a review on the concept of open price term and the current Iranian law on this concept. The next objective is to explain the justifications for acceptance of open price term with regard to global evolutions, legal theories and Islamic theories and principles.

DOI: 10.5901/mjss.2015.v6n4s3p166