The Legal Nature of Contract: Reflections on the Autonomy of Contract Law

Document Type : Research Paper

Author

Assistant Professor, Department of Private Law, Faculty of Law, Tehran University, Qom, Iran.

10.22059/jlq.2025.399612.1008016

Abstract

Introduction
 A persistent challenge in the legal domain concerns the lack of consistency in resolving contractual disputes. This inconsistency arises from divergent interpretations of contractual relations, particularly regarding how the law conceptualizes disputed agreements. The debate therefore centers on the legal understanding of contracts, as the adoption of a coherent interpretative framework is essential for the consistent resolution of disputes across diverse contractual contexts. Clarifying this issue enables the identification of the factors underlying discrepancies in judicial and arbitral decision-making. In this regard, the fulfillment of legal and judicial functions presupposes a precise understanding of the essence of contract law and the delineation of the elements that properly fall within its scope. Accordingly, the principal research questions are as follows: What constitutes contract law? What content does it encompass, and what are its foundations? Should contract law be regarded as an autonomous field of law, or does it merely follow the principles and methodology of other legal branches? More specifically, what perspective does Iranian law adopt toward contracts, and how does it conceptualize them? What is the nature of the legal rules governing contracts, what classifications do they fall under, and in what respects do they differ from other types of legal rules?
 
Method
Although both domestic and foreign scholarship has addressed these questions, existing studies have tended to provide fragmented responses and have not succeeded in offering a coherent justification of current Iranian legal practice in light of its doctrinal foundations. This study seeks to address the matter systematically, drawing on the philosophical underpinnings of contract law, Iran’s historical legal development, and achievements in international contract law, and judicial practice. The research approach combines doctrinal and theoretical analysis with comparative legal study. In addition to examining statutory provisions and judicial precedents, the study engages with scholarly theories and comparative perspectives, including English-language literature on contract law. By situating Iranian legal doctrine within a comparative framework, the study aims not only to describe but also, where necessary, to critically evaluate and analyze the subject.
Conclusions
Iranian contract law is deeply influenced by Islamic jurisprudence, yet it also reflects the imprint of Western legal traditions and historical transformations. The doctrinal foundation of Iranian civil law, shaped by jurisprudence, Roman law, and French positivism, emphasizes the notion of promise. Article 10 of the Civil Code, for instance, is premised on the theory of will, treating the contract as a product of mutual consent rather than an exchange of material interests. Nevertheless, contemporary legal practice also demonstrates the influence of utilitarian and realist approaches. Judicial reasoning often incorporates considerations of equitable exchange and economic expediency, which resonate with both modern legal thought and certain principles within Islamic law—such as rules addressing fraud (ghabn), defects, and similar doctrines. Thus, although the historical dominance of the promise theory persists, economic realities increasingly shape the practical application of contract law. This interaction produces a complex doctrinal landscape wherein neither a purely promissory nor a purely utilitarian conception suffices. A comprehensive understanding of contracts requires acknowledgment of all three dimensions: the autonomy of will, the normative structure of legal rules, and the economic balance of interests. From this perspective, judicial intervention is justified where the formation of will is defective, whereas in cases of valid and untainted consent, the contract retains its character as a binding promise.

Keywords

References

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Law Quarterly
Volume 55, Issue 4
January 2026
Pages 605-629

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