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“Shop-lease Contract with Sar-qofli” in the Post-Iranian Revolution Era: Deletion of “Haqq-e kasb o pisheh o tejārat” from the Law of Lessor–Lessee Relationships

Published online by Cambridge University Press:  01 January 2022

Yoko Iwasaki
Yoko Iwasaki*
Affiliation:
Institute of Developing Economies, Japan
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Abstract

In contemporary Iran, many shops are under the “shop-lease contract with sar-qofli.” In this contract, sar-qoflisar-qofli, a strong usufructuary right supported by intangible assets such as the shop’s reputation, is given to the tenant. The “shop-lease contract with sar-qofli” originated from a traditional merchants’ custom in Iran’s business quarters. After the 1979 Revolution, the Law of Lessor–Lessee Relationships, which provides a legal framework for the practice of “shop-lease contract with sar-qofli,” was completely revised, since Islamic jurists regarded haqq-e kasb o pisheh o tejārat as problematic. Haqq-e kasb o pisheh o tejārat, the legal designation of sar-qofli, was based on a heterogeneous value concept introduced into the Iranian legal system from abroad during World War II. As a result of this revision, another alternative for asset management was granted to shop owners. Nevertheless, “shop-lease contract with sar-qofli” remains the most widely employed form of lease in Iran’s property lease market.

Keywords

Lease Contractsar-qoflihaqq-e kasb o pisheh o tejāratLandlord and TenantRevision of Law1979 RevolutionKhomeiniAsset Management
Type
Articles
Information
Iranian Studies , Volume 49 , Issue 3 , May 2016 , pp. 359 - 381
Copyright
Copyright © Institute of Developing Economies 2014

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Footnotes

Yoko Iwasaki is indebted to Bahman Keshāvarz, attorney at law, and Majid Sā’eli Kordehdeh, specialist at Ketāb-khāneh-ye Majlis-e Showrā-ye Islāmi, for their generous assistance and beneficial advice. This work was supported by Institute of Developing Economies.

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