Fatemeh Rakideh
trainee lawyer at the Iranian Central Bar Association
English
Consultation
partnership and investment agreement under Iranian law

partnership and investment agreement under Iranian law

In partnerships and investments, it is not enough to simply determine the percentage of profit. The contribution of each party, ownership of assets, management authority, audit, subsequent financing, losses, exit and dispute resolution must be clear.

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partnership and investment agreement under Iranian law

In partnerships and investments, it is not enough to simply determine the percentage of profit. The contribution of each party, ownership of assets, management authority, audit, subsequent financing, losses, exit and dispute resolution must be clear.

Practical point: Ambiguity in the ownership of the contribution or the authority to withdraw and spend is an important factor in the dispute; therefore, the reporting mechanism and financial documents must be determined from the beginning.

Important points in contract review

Point 1

The complete contract, addenda and relevant clauses

Point 2

When the obligation arose, its due date and evidence of performance or non-performance

Point 3

Correspondence, messages, formal legal notices, payment receipts, and delivery documents

Point 4

Security, agreed sums for breach, termination rights and dispute-resolution clauses

Legal review of documents and disputes related to partnership and investment agreement under Iranian law

Importance of a careful contract review

In a partnership or investment agreement, a dispute may concern contributions, management, profit and loss shares, protection of invested capital or a partner’s exit. Review the contract and financial documents before choosing how to pursue it.

Related topics

commercial and corporate contracts under Iranian law

Drafting and reviewing commercial contracts with attention to signing authority and the parties’ risks and liabilities.

Arbitration and dispute resolution in contracts

Validity of the arbitration clause, the arbitrator’s powers and selection of the appropriate contractual dispute-resolution mechanism.

Contract interpretation and disputes over terms

Analysing ambiguous clauses, the relationship between terms and their legal effects.

  • Iranian Civil Code («قانون مدنی»)

  • Iranian Commercial Code («قانون تجارت»)

  • Iranian Code of Civil Procedure («قانون آیین دادرسی دادگاه‌های عمومی و انقلاب در امور مدنی»)

This list identifies the principal legal provisions relevant to the page. The applicable law and amendments must be checked against the dates, subject matter and circumstances of each case.

The official texts and latest amendments are available in the National Database of Iranian Laws and Regulations.

Frequently asked questions

First review the contract, profit calculation, accounts, reports and payment dates. Depending on the legal relationship, a request for accounts, performance, payment or damages may be considered.
Exit arrangements depend on the contract, its duration, termination or other exit provisions, settlement arrangements and the status of contributions. Leaving without resolving obligations and assets can create further disputes.
Key issues include the type of contribution, authority to draw on funds, reporting, allocation of profit and loss, security for performance, transfer of interests and exit arrangements.

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For legal advice or follow-up on a case, contact us using one of the methods below.

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