Research and development in private law

Research and development in private law

Constitutive Elements of Contract Simulation

Articles in Press

Document Type : Original Article

Authors
siamak pakbaz 1
Abbas Ghasemi hamed 2
1 PhD student in private law at Shahid Beheshti University
2 Shahid Beheshty university
10.22034/jpl.2026.2081080.1279
Abstract
Contract simulation is a legal operation whereby the parties, through the conclusion of a counter-letter, intentionally seek to amend, neutralize, or eliminate the effects of their apparent (simulated) contract, which is concluded simultaneously with that counter-letter. In such cases, the apparent agreement does not reflect the true intention of the parties but merely serves as a façade designed to conceal their actual legal relationship. The conclusion of two contracts, one apparent and the other secret, can, under certain conditions, lead to the formation of contract simulation; conditions that are partly the result of the analysis of the form of the simulation operation (external elements) and partly the result of the analysis of the terms and content of the agreement (internal elements).

An examination of the external elements of contract simulation reveals that the very concept presupposes the existence of two contracts; Both are, by necessity, to be reduced to writing, while one of them must, inescapably also be concluded secretly. The internal elements of contract simulation also comprise two essential components: the requirement of simultaneity in the conclusion of the contracts, and the necessity of a conflict between them.

In the view of French legal scholars and in the jurisprudence of that country, no significant divergence of opinion is observed regarding the necessity of these elements for the formation of contract simulation; However, numerous opinions have been expressed by French jurists and courts regarding each of these elements and their role in the formation of contract simulation.

Under Iranian law, despite the absence of any explicit provision regarding the concept or the manner in which contractual simulation is formed, it appears that the aforementioned elements may be regarded as universal components constituting contract simulation. Accordingly, when examining this concept within the Iranian legal system, the same factors may be taken into consideration.
Keywords
Contract simulation
Counter-letter
Simulated contract
Internal volition
Simulated volition
Subjects
A)    Book
1.       Al-Sharif, M. M. & Sadeghi, V. (1404). A commentary on the law requiring the official registration of immovable property transactions. Tehran: Judiciary publications. [In Perian].
2.       Ameli (Shahid sani), Z. (1414). Masalek al-Afham ela Tanghih al-Sharaye al-Islam. Vol. 8. Qom: Islamic Knowledge Institute. [In Arabic].
3.       Aubry. Ch. et Rau. C. (1922). Droit civil français. T.XII. 5ème éd. par Bartin. Paris: LGDJ.
4.       Beygi, M. (1389). A jurisprudential and legal study of counter-letter and their effects. Thesis. Tehran: Tarbiat moallem university. [In Persian].
5.       Boré. V.J. (1997). La cassation en matière civil. Paris: Dalloz. [In French].
6.       Cabrillac. R. (1998). Droit des obligations. 3ème éd. coll. Cours. Paris: Dalloz. [In French].
7.       Capitant. H. Terré. F. et Lequette. Y. (2000). Les grands arrêts de la jurisprudence civile. T.1. Introduction. 11ème éd. Paris: Dalloz. [In French].
8.       Carbonnier. J. (2004). Droit civil, les biens, les obligations. T.II. Paris: PUF. [In French].
9.       Dagot. M. (1967). La simulation en droit privé. Paris: LGDJ. [In French].
10.    Fabre-Magnan. M. (2004). Les obligations. 1re éd. coll. Thémis Droit privé. Paris: PUF. [In French].
11.    Gaudemet. E. (2004). Théorie générale des obligations. Paris: Dalloz. [In French].
12.    Ghassemi Hamed, A. (2023). Civil Law; Essential Conditions for the Validity of the Contract. Tehran: Derak. [In Persian]
13.    Ghestin. J. Jamin. C. et Billiau. M. (2001). Traité de droit civil, Les obligations. Les effets du contrat. 3ème éd. Paris: LGDJ. [In French].
14.    Guerin. L. & Delpo. Amy. (2007). The Manager's Legal Handbook. Nolo. USA. [In English].
15.    Jafari Langroudi, M. J. (2022). Will Effects on Civil Law. Tehran: Ganje Danesh. [In Persian]
16.    Julliot  De la morandière. Léon. (1947). Précis de droit civil. T.II. 9ème éd. Paris: Dalloz. [In French].
17.    Katouzian, N. (2016). Family Law. Vol. 1. Tehran: Enteshsr Co. [In Persian]
18.    Katouzian, N. (2018). Civil Law; General Rules of Contracts. Vol. 1. Conception, Formation and Validity of Contract. Tehran: Ganje Danesh. [In Persian]
19.    Katouzian, N. (2020). Civil Law; General Rules of Contracts. Vol. 3. Effects of Contract. Tehran: Ganje Danesh. [In Persian]
20.    Larroumet. C. (2007). Droit civil. Les Obligations, Le Contrat. T.3. 6ème éd. Paris: Economica. [In French].
21.    Malaurie. Ph. & Aynès. L. & Stoffel-munk. Ph. (2020). Les Obligations. 11ème éd. Paris: LGDJ. Défrénois. [In French].
22.    Mazeaud. D. (1992). La notion de la clause pénale. Thèse. T.23. Paris: LGDJ. [In French].
23.    Mazeaud. H. L. et J. Chabas. F. (1998). Leçons de droit civil, Obligations, Théorie générale. T. 2. 1re vol. 9ème éd. Paris: Montchrestien. [In French].
24.    Mirshamsi, M. H. (2001). Simulation in Iran ad France's Law. Ptivate Law M.A Thesis, Under the Supervision of Dr. S. H. Safaei. Imam Sadiq University. [In Persian]
25.    Najafi, M. H. (1981). Jawahir al-Kalam fi Sharh Sharia al-Islam. Vol. 31. Beirut: Dar Ihya al-Turath al-Arabi. [In Arabic]
26.    Pakbaz, S. (2023). Commentary of the French Civil Code; 2016 Reforme. Tehran: Mizan. [In Persian]
27.    Planiol. M. et Ripert. G. (1952). Traité pratique de droit civil français. 2ème éd. T.VI. par P. Esmein. Paris: LGDJ. [In French].
28.    Rahbari, E. & Kazemi Ahouei, N. (1395). Non-competition Agreement. Tehran: Samt.
29.    Roland. H. et Starck. B. et Boyer. L. (1993). Droit civil, Obligations, Contrat. T.2. 4ème éd. Paris: Litec. [In French].
30.    Rouhani, M. S. (1414). Fiqh al-Sadegh. Vol. 22. Qom: Dar al-ketab Institute. [In Arabic].
31.    Sadeghi Kan'ani, R. (1395). A study of apparent (simulated) contracts and counter-letter in Iranian and law. Thesis. Tabriz: University of Tabriz. [In Persian].
32.    Safaei, S. H. (2020). Introductory Course on Civil Law. Vol. 2. General Rules of Contracts. Tehran: Mizan. [In Persian]
33.    Saghy- Cadenas. P. (2012). La simulation de contrat. Etude comparé en droit civil français et vénézuélien. Thèse de Droit Privé. Université Panthéon-Assas. [In French].
34.    Sanhuri, A. A. (No Date).  Al- Mujiz fi al-Nazariyya al-'amma lil-Iltizamat. Beirut: Dar Ihya al-Turath al-Arabi. [In Arabic]
35.    Sanhuri, A. A. (No Date).  Al- Wasit fi Sharh al-Ghanoon al-Madni al-Jadid. Vol. 2. Beirut: Dar Ihya al-Turath al-Arabi. [In Arabic]
36.    Sériaux. A. (1998). Droit des obligations. 2ème éd. Paris: PUF. [In French].
37.    Terré. F. et Lequette. Y. et Simler. Ph. (2009). Droit civil. Les Obligations. 10ème éd. Paris: Dalloz.
38.    Tusi (Sheikh), M. (1382). Al-Khilaf fi Feqh. Vol. 2. Tehran: Taban. [In Arabic]
39.    Tusi (Sheikh), M. (1387). Al-Mabsout fi Feqh al-Emamiyeh. Vol. 4. Tehran: Al-Maktabah al-Mortazaviyeh le-Ehya al-Asaar al-Ja'fariyeh. [In Arabic]
40.    Weill. A. (1980). Droit civil. Les obligations. 3ème ed. Paris: Dalloz. [In French].
B) Articles
41.    Arcelin. L. (2002). Interposition de personne et prête-nom : deux cas de simulation ? ; LPA (Les petites affiches). [In French].
42.    Bredin. J.-D. (1956). Remarques sur la conception jurisprudentielle de l'acte simulé. RTD. civ. [In French].
43.    Cohen. A. (1956). Commentaire sur Cour d’appel de Paris. 7ème Ch. 17 mars. 1955. Ginard c. Delafosse. JCP. II. Jurisp. n° 9185. [In French].
44.    Ghassemi Hamed, A. & Pakbaz, S. (1404). A comparative study of contract simulation in Iranian and French law. Tehran: Journal of Research and development in comparative law Doi: 10.22034/law.2025.2064870.1668. [In Persian].
45.    Leduc. F. (1999). Réflexions sur la convention de prête-nom. RTD. civ. [In French].
46.    Mestre. J. et Fages. B. (2001). L'interposition de personnes ne suppose pas que l'acte ostensible et l'acte secret aient été conclus entre les mêmes personne». RTD civ. Revue trimestrielle de droit civil. Paris: Dalloz . [In French].
47.    Voulet. J. (1971). Le grief de dénaturation devant la Cour de cassation. JCP. éd. G. I. [In French].
C) Dictionnaire
48.    Alain. R. (1998). Le Robert Micro de la langue française. 3ème éd. Dictionnaire. Paris.
49.    Cornu. G. (sous la dir.). (2011). Vocabulaire juridique. Association Henri Capitant. 9ème éd. Paris: PUF. Coll. Quadrige.
D) Jurisprudences
50.    CA Paris, 19 mai 1982, JCP G 1983, IV.
51.    CA Paris, 9 déc. 1929 : DP 1930, 2.
52.    Cass, civ. 1re, 17 fev 2011.
53.    Cass. 1re Ch. Civ., 13 janvier 1953, Bull. civ. I.
54.    Cass. 1re Ch. civ., 2 juin 1970.
55.    Cass. 1re Ch. civ., 3 juin 1975 : Bull. civ. I.
56.    Cass. 3ème civ., 19 févr. 1975, préc.
57.    Cass. 3ème Ch. civ., 14 nov. 1972, Bull. civ. III.
58.    Cass. civ. 1re,  13 janvier 1953.
59.    Cass. civ. 1re, 13 janvier 1953, Bull. civ. I.
60.    Cass. civ., 18 mai 1897 : DP 1897, 1, p. 505, note de LOYNES.
61.    Cass. com., 21 juin 1961.
62.    Cass. com., 21 juin 1961, Bull. civ. III.
63.    Cass. req., 10 janv. 1939 : Gaz. Pal. 1939, 1.
64.    Ch. cass. civ. 1re, 2 juin 1970, Bull. civ. I.
65.    Ch. cass. civ. 1re, 28 nov. 2000, n° de pourvoir : 98-14618.
66.    Ch. cass. civ. 1re, 28 nov. 2000, RTD civ. 2001.
67.    Ch. Cass. Comm. 8 mai 1978, JCP, II, n° 19192.
68.    Reims, 1re et 2ème Ch.,15 mai 1973, Gaz. Pal. 1974, 2.
69.    Toulouse, 27 avril 1981, Gaz. Pal. 1982, 1, somm. 214.