The approach of incompetence in Negotiable Instruments (study of Iranian law with a view to British law and international documents)
Subject Areas : International Legal ResearchMohammad Shokri 1 , Ibrahim Taghizade 2
1 - Assistant Professor, Department of Law, Payam Noor University, Tehran, Iran
2 - Professor of the Law Department of Payam Noor University, Tehran, Iran
Keywords: capacity, Bills, Check, Negotiable Instruments, Capacity for Trade, Draft,
Abstract :
The use of negotiation instruments economic, banking and commercial relations is common. Therefore, the legal issues of these documents are of special importance in resolving incidental disputes. Transactions related to negotiation instruments (bills, promissory notes and check) include issuance, endorsement, guarantee and acceptance of bills due to the voluntary nature of the legal action and based on the reciprocity of the contractual nature; therefore, capacity is necessary. Considering the necessity of processing the existing legal gaps in Iran's legal system, the present article, using the descriptive-analytical method, examines the issue in Iranian law with a view to English law and the international conventions of Geneva and UNCITRAL. According to the general rules, the parties must have the capacity, the capacity has two types of Capacity (sui juris)" and " Executive capacity". Incompetence as one of the conditions of the legal approach leads to invalidity or lack of influence. This effect is sometimes different from other transactions in negotiation instruments in terms of the specific features that govern them. In addition to the two mentioned cases, a third type called commercial qualification in the laws of some countries and as a result, some opinions have been considered necessary, which, due to the lack of the latter case in the relevant laws of Iran, does not have a legal place in the transactions of negotiation instruments.