Bankruptcy Option; Jurisprudential and Legal Redefinition of Insolvency Option

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Vaseghi Mohsen; Mehryar Mohammad; Hashemi Sayyedah Fatemeh

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Journal Paper

Paper Information

Journal: LEGAL RESEARCH Year:2025 | Volume:28 | Issue:109 Page(s): 219-234

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Title

Bankruptcy Option; Jurisprudential and Legal Redefinition of Insolvency Option

Author(s)

Vaseghi Mohsen | Mehryar Mohammad | Hashemi Sayyedah Fatemeh | Issue Writer Certificate

Keywords

insolvency option

Insolvency

Bankruptcy

bankruptcy option

Jurisprudence

Abstract

Bankruptcy institution was removed from Iran's legal literature according to the Insolvency Law approved in 1313. The interpretation of the civil law articles in which the word bankruptcy is used is an undeniable necessity. Specifically, in Article 380 of the Civil Code, the status of the insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option and its interpretation were disputed. Sometimes the claim to abolish the insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option and the invalidity of Article 380 of the Civil Code has been emphasized, and sometimes the claim to the existence of an option under the title of insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option has been strengthened. The question that arises is what is the interpretation of Article 380 of the Civil Code in light of the jurisprudential and legal documents after elimination of bankruptcy institution from the applicable laws? In this article, with the analytical descriptive method and among the reliable jurisprudential sources, we have found that the documents of the insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option can be applied to the case of bankruptcy, Therefore, we considered the existence of the insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option valid in law and jurisprudence. Therefore, if there are conditions of insolvency option/fa?page=1&sort=1&ftyp=all&fgrp=all&fyrs=all" target="_blank">insolvency option and when one of the parties becomes insolvent and it is one of the exceptions of debt, another institution can be considered as valid in addition to deferment and debt distribution under the title of bankruptcy option. The existence of jurisprudential fatwas regarding the existence of an option in the event of non-payment of the price due to the occurrence of a customer's bankruptcy is considered one of the important reasons for the option of bankruptcy. This discovery and the creation of an option under the title of bankruptcy option as a great achievement helps to solve many court cases related to the issue of bankruptcy

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