Strategic Studies of Jurisprudence and Law

Strategic Studies of Jurisprudence and Law

The nature of the option contract in Iranian, French and English jurisprudence and law

Document Type : research

Authors
Fereshte Parsa Manesh 1
Naser Masoudi 2
Rahim Vakilzadeh Dizaji 2
Ali Gharibeh 3
1 PhD student in private law, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
2 Associate Professor, Private Law Department, Tabriz Branch, Islamic Azad University, Tabriz, Iran
3 Assistant Professor, Department of Private Law, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
10.22034/ejs.2023.385360.1377
Abstract
Background and Aim: Financial experts have invented various tools to reduce risk. These instruments are known as "derivative instruments", which include four categories of contracts; "Future Contract", "Same Futures", "Options" and "Swap Contracts" contracts. Among the derivative instruments, the option contract and its nature are more important.
Materials and Methods: This research is of theoretical type and the research method is descriptive-analytical and the method of data collection is library and has been done by referring to documents, books and articles.
Findings: An option is the only derivative contract that can be traded on the stock exchange or over the counter. On the other hand, the flexibility of the option contract compared to other financial derivative instruments has made it possible to better cover the risk caused by price fluctuations with this instrument.
Ethical Considerations: In order to organize this research, while observing the authenticity of the texts, honesty and fidelity have been observed.
Conclusion: Although this contract has many similarities with other contracts, it seems that in all three countries of Iran, England and France, the option contract is a valid and independent contract. In addition, covering the risk of sudden and unfavorable changes in the price of goods and commodities in future transactions has caused British lawyers to equate the nature of option contracts with insurance contracts.
Keywords
Contract
derivative instruments
Iranian rights
English law
French law
Subjects

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Strategic Studies of Jurisprudence and Law
Volume 5, Issue 2 - Serial Number 17
Studies of economic jurisprudence
Summer 2023
Pages 147-162