Encyclopedia of Economic Law Journal

An Analysis to Legal Status of Kinds of Bankrupt’s Fictitious and with Conspiracy Transactions; Lack of Complete Coordination between Bankrupt’s Transactions Nullity Causes and Causes of Culpable Bankruptcy

Document Type : Scientific research

Author

Ahad Gholizadeh Manghutay

Department of Law, University of Isfahan

https://doi.org/10.22067/economlaw.2022.75992.1164
Abstract
With regard to the subject’s show up in Civil Code, Commercial Code and the Act on Manner of Enforcing Pecuniary Convictions, there are different views and ambiguities about the legal status of kinds of bankrupt’s fictitious and with conspiracy transactions. Insight in contents of the related articles of above Acts shows that from the Legislature’s view transactions are not fictitious unless otherwise is proved. Fictitious transactions whether concluded by bankrupt or not are null and void. Non-fictitious transactions are divided into two categories of with conspiracy and without conspiracy. In this connection too transactions are not with conspiracy unless otherwise is proved. Transactions with conspiracy would as well be null and void or revocable whether concluded by the bankrupt himself or not; as well whether the bankrupt has concluded these kinds of transactions before or after interruption of payments. But transactions without conspiracy are principally valid though according to Act on Manner of Enforcing Pecuniary Convictions they may result in punishment of the person transacted for evading debt or harming creditors. These kinds of transactions may exceptionally due to other causes become revocable or null and void. The legislature has ultimately chosen the method selected in the Commercial Code with a little difference to apply in all cases in the Act on Manner of Enforcing Pecuniary Convictions. In general, the Legislator, contrary to the expectations, has not adhered complete coordination between the causes of bankrupt’s transactions nullity and the causes of culpable bankruptcy.

Keywords

Transaction for evading debt
Bankrupt businessman
Transactions revocable by the court
Commerce Act
the Act on Manner of Enforcing Pecuniary Convictions

©2022The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

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