Jurisprudential thematics of floating price in modern transactions

Document Type : Original Article

Authors

1 Ph.D. Student, Department of Jurisprudence and Islamic Law Principles, Islamic Azad University, Qom, Iran.

2 Associate Professor, Department of Jurisprudence and Islamic Law Principles, Islamic Azad University, Qom, Iran.

Abstract

The determination of the price is essential for the validity of a sale, as most jurists assert that ambiguity in either the object of sale or the price renders the transaction invalid due to uncertainty (gharar). Article 216 of the Civil Code, influenced by Imamiyah jurisprudence and social welfare considerations, requires detailed knowledge of the transaction subject for contract validity, except in specific cases where general knowledge suffices.
This research employs a descriptive-analytical and comparative approach to examine the legal and jurisprudential status of such transactions. It argues that while customary practices significantly influence civil law, relying solely on these customs can lead to diverse and subjective practices, complicating the market for these transactions. This variability makes it challenging to establish a consistent approach in courts during disputes, an issue also reflected in the reliance on Article 10 of the Civil Code.
However, future price determination does not contradict the fundamental conditions for a valid sale. Agreeing on a method for future price determination—provided it does not result in ignorance—can validate the sale. Given the existing legal gap regarding transactions with floating prices, there is a pressing need for legislation that focuses on “future determination free from ignorance.” This would help create a clearer legal framework for such transactions, ensuring both compliance with legal standards and protection for the parties involved.

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Main Subjects

References

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Fiqh
Volume 31, Issue 0
September 2024
Pages 74-102

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History

  • Receive Date: 11 August 2024
  • Revise Date: 15 January 2025
  • Accept Date: 16 January 2025

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