A Legal-Judicial Deliberation on the Article 575 of the Civil Law

Document Type : Research Article

Authors

• Sayyid Muḥammad Mahdī Qabūlī Durafshān
• Sa‘īd Muḥsinī

10.22067/fiqh.v0i0.11097

Abstract

Although in principle the benefit and loss resulted from partnership is to be taken into consideration in private relationships proportionate to the parties’ shares, prediction of stipulating more benefit or exempting all or part of the loss in the company’s contracts, with respect to the existing necessities and the need for maximum participation, is a common practice. Whereas, the article 575 of the civil law apparently does not approve all these stipulations; rather, on the contrary, it signifies the invalidity of the condition of surplus benefit without extra
action and the condition of greater loss for some of the partners. That is why it is necessary to reappraise and critically review the discursive principles of article 575 in order to better understand it.
In this respect, through studying various legal and judicial dimensions of the issue in question and close examination of the principles presented by the jurists and legal experts, it can be concluded that there has been no barrier for approving the above-mentioned stipulations and that it behooves the legislator to provide for the possibility of predicting the stipulation of more benefit without its conflict with action and the possibility of stipulating greater loss.
Keywords: civil partnership, trading company, benefit, loss, stipulation, contract.

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