The Theory of the Legitimacy of State Intervention in Private Contracts with Emphasis on the Jurisprudential and Legal Foundations of the Mandatory Registration Law

Abstract

State intervention in private contracts constitutes one of the most significant theoretical challenges arising from the tension between individual freedom of will and the public authority of the state. With the transformation of economic relations and the expansion of social and economic inequalities, the necessity of identifying a legitimate foundation for such intervention has become increasingly prominent. In this context, the Law on Mandatory Official Registration of Immovable Property Transactions (enacted in 2024) represents a manifestation of legitimate state intervention in private legal relations. Although this law appears, at first glance, to restrict contractual freedom, it in fact facilitates its genuine realization by ensuring transparency, legal certainty, and transactional justice. This intervention derives its legitimacy from jurisprudential principles such as the rule of no harm (La Darar) and the doctrine of negation of domination (Nafy-e Sabil), as well as from legal principles including Article 10 of the Iranian Civil Code and the rule of fulfillment of contracts (Pacta Sunt Servanda). Employing a descriptive–analytical method, the present study demonstrates that the Mandatory Registration Law does not curtail autonomy of will; rather, it functions as an institutional mechanism for embedding contractual freedom within the framework of public order and social interests.