INVESTIGATING LEGAL DIM.1ENSIONS OF PARTNERSHIP CONTRACTS IN THE BANKING SYSTEM AND ITS ADJUSTMENT TO THE IRAN'S CIVIL CODE

Abstract

The present research was carried out with the aim of studying different dimensions of banking partnership
projects and how compatible with the Iran's civil code they seem, because the recent growth in these
contracts would necessitate carrying out research to provide persons who set out to inter into such contracts
with useful information. Findings showed that ineffective execution of partnership contracts in the Iran's
banking system has led to several problems diverting it away from the Iran's civil code. Consequently, banks
fail to cooperate with applicants to ease manufacturing, trading, and service affairs. A most important point
is that banks adopt a number of measures aimed at preventing potential damages and place all
responsibilities on the customer, while all partnership contracts emphasize on sharing both profit and loss,
not simply contribution in profits. So, such contracts closely resemble a loan practicing usury, because there
is no loss in partnership, and on other hand, banks compel customers to payback the principle and its
interest.