Grounds for Annulment of Administrative Contracts in Iranian and English Law

Abstract

Administrative contracts, intrinsically linked to public interest and welfare, are subject to specific rules and formalities. The formalities governing these contracts, which manifest in various forms throughout the contractual process from inception to execution, are so diverse that a single, specific sanction cannot be universally applied. This research, with a particular focus on Article 92 of the General Penal Code, the Implementing Regulation of the Law of the Complaints Review Board Statute for Law on Conducting Tenders, and Article 13 of the Administrative Justice Court Law, examines the legal status of such contracts in cases of invalidity. The predominant legal doctrine and the views of most legal scholars posit that the sole sanction for non-compliance with formalities is the annulment of the legal act. However, legal logic necessitates a broader interpretation in such cases. The wording of Article 92, which refers to the "rejection of a transaction" as a sanction for non-compliance, suggests that non-compliance with formalities does not necessarily render a contract void. In such cases, if the transaction can be rendered ineffective, the interests of the administrative body will be served. Otherwise, the concept of vested rights must be considered. Furthermore, the research delves into the annulment of contracts under English law and its adjustment. An examination of certain provisions of the Implementing Regulation of the Law of the Complaints Review Board Statute for Law on Conducting Tenders and Article 13 of the Administrative Justice Court Law reveals that, in administrative adjudication, the legislature is sometimes compelled to adopt a special approach.