The Position of the State Institution and Its Implications for Contract Law in Iran's Economic Development

Abstract

Simultaneously with the process of economic development and its increasing centrality in academic and policy discussions, various perspectives have emerged regarding the role of legal rules and regulations, including contract law and the position of the state institution in this context. In line with this situation, the present article seeks to examine the position of the state institution and the implications of contract law for Iran's economic development. The findings of this study indicate that, first, the rationale for supporting state regulatory intervention in contract law to achieve economic development stems from historical experience. Relying solely on the market to attain development without state intervention does not guarantee justice, and excessive government intervention, without the participation of institutions such as the market and other independent entities, endangers freedom. Therefore, state intervention in the form of regulation is necessary to prevent the violation of fundamental rights while ensuring market participation, thereby directing contract law toward sustainable economic development. Second, in addition to the regulatory role of the state and related institutions, securing property rights and eliminating excessive regulations and complex, non-transparent laws—elements that facilitate the formation of productive contracts and serve as drivers of economic development—are fundamental requirements. Iranian policymakers and legislators must focus on these factors to achieve economic development.