Document Type : Research Article

Author

Associate Professor, Department of Privte Law, Faculty of Humanities, Islamic Azad University, West Tehran Branch, Tehran, Iran.

Abstract

Offers are divided into two categories: simple and binding. In a binding offer, the offeror cannot withdraw from the offer, because said offer, by implication entails the deprivation and waiver of the offeror's right of withdrawal. If the offeror withdraws from the offer during its validity period, the contract is concluded upon the offeree's declaration of acceptance. However, if the subject matter of the offer is a specific corporeal asset and the offeror transfers it to a third party before the offeree declares acceptance, the question that arises in this regard concerns the jurisprudential-legal status of the conflicting transaction thus carried out. Some, by analogizing this matter to a mortgagor's transactions concerning the mortgaged property without the mortgagee's permission, have declared conflicting transactions with the offer as non-binding. Others have merely referred to the offeree's right to seek the annulment (ebtāl) of the aforementioned conflicting transaction. Imami jurists have not expressed an opinion specifically regarding the binding offer. However, given the nature of the implied condition contained in the binding offer, which is an instance of a negative-result condition, Imami jurists consider transactions conflicting with such a negative-result condition as ineffective. The conclusion derived from this research is that since conflicting transactions with a binding offer implicitly entail the deprivation of the offeror's right of withdrawal, they create an initial proprietary right for the offeree. Therefore, said transaction is placed in a suspended/pending state due to the existence of an impediment. If the offeree exercises their right during the validity period of the offer, the conflicting transaction, due to the impediment existing in it that causes instability in its continuance, is rescinded from the very date of its conclusion.

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