Protection of Creditors against Contracts that Debtors conclude them with the Intention of Escape from the Payment of Their Debts

Document Type : Scientific research

Authors

Sayyed Mohammad Mahdi Qabuli Dorafshan

Saeed Mohseni

https://doi.org/10.22067/le.v19i1.27370

Abstract

The protection of creditors and making suitable security for their rights will result in their trust for the investment and will lead to the briskness of the trade and economic growth. One of the most important problems is the protection of creditors against contracts that debtors conclude them with the intention of escape from the payment of their debts. In this study the validity of these contracts is examined in a comparative study of the French, Iranian and Shiite legal systems. The French law provides the possibility of fraud action for the protection of the creditors against above-mentioned contracts and the action, with some conditions, can make these contracts incapable of been invoked against the creditors. In the Iranian law, with due attention to 40th principle of the Constitution and the reasoning behind the article 65 of the Civil Act and La Darar rule we can consider such contracts voidable. The latter sanction is stronger than the above-mentioned French sanction and protects the creditors so better. However, it is notable that in the Iranian law, the specific provisions in special Acts in the ground must be followed.

Keywords

Contract

creditor

debtor

escape from debt

voidability

invokability

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