The Social Sciences

Year: 2017
Volume: 12
Issue: 8
Page No. 1389 - 1393

Fraud under Private International Law of Iran

Authors : Abasat Purmphammad and Mohammad Saleeh Sahrayi

Abstract: Fraud is generally defined in the law as an intentional misrepresentation of material existing fact made by one person to another with knowledge of its falsity and for the purpose of inducing the other person to act and upon which the other person relies with resulting injury or damage. Fraud may also be made by an omission or purposeful failure to state material facts which nondisclosure makes other statements misleading. To constitute fraud, a misrepresentation or omission must also relate to an ‘existing fact’, not a promise to do something in the future, unless the person who made the promise did so without any present intent to perform it or with a positive intent not to perform it. The false statement or omission must be material, meaning that it was significant to the decision to be made. Also, an opinion does not constitute an existing fact and cannot be the basis of a claim of fraud unless the person stating the opinion has exclusive or superior knowledge of existing facts which are inconsistent with such opinion. The misrepresentation or omission must be made knowingly and intentionally, not mistakenly or accidentally, so that the person either knew or should have known of the falsity or acted in negligent disregard of its truth or falsity. The person charged with fraud must have intended the Plaintiff to rely on the misrepresentation or omission and Plaintiff must have been injured by such reliance to prevail on the claim. Sometimes, it must be shown that Plaintiff’s reliance was justifiable and that upon reasonable inquiry would not have discovered the truth of the matter. For injury or damage to be the result of fraud, it must be shown that except for the fraud, the injury or damage would not have occurred. Fraud in the factum means fraud in the obtaining the execution of the agreement or delivery of a document. As opposed to fraud in inducing someone to sign a document, it is fraud regarding the contents of the document, so that the person defrauded is unaware of what they are signing. Fraud is ne of the crucial elements of Private International Law. It makes issues related to the conflict of law more complicated. Two rather differing meaning can be envisaged for fraud: the first definition constitutes non-observance of a domestic or foreign law, by means of making voluntary changes in connecting elements such as nationality and domicile. In this study, it becomes clear that evade of parties the law by changing the connecting elements is not always good. The modern definition of fraud is considered as the escape of all parties or one of them from competent law along with a change of legal relations of substance which is determined by examining the fraud by both material and mental elements in the development of the legal establishment and proof of them. But proving the fraudulent intent of all parties or one of them will not be always an easy task. In Iran, it appears that under the Article 990 of the Civil Code, aiming to avoid fraud, the return of Iranians who have acquired foreign nationality is subject to the discretion of that government as well as Iran’s judiciary.

How to cite this article:

Abasat Purmphammad and Mohammad Saleeh Sahrayi, 2017. Fraud under Private International Law of Iran. The Social Sciences, 12: 1389-1393.

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