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Assessing the Efficiency of Collective Will Formation in Iranian Private Law: A Transaction Cost Theory Perspective

Document Type : Original Article

Authors

1 Associate Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran

2 Assistant Professor, Faculty of Law, Shahid Beheshti University, Tehran, Iran

3 L.L.M, Faculty of Law, Shahid Beheshti University, Tehran, Iran Corresponding Author Email: eh.miri@mail.sbu.ac.ir.

Abstract

Supporting collective will can significantly contribute to a country's economic growth and development. Although legislators have acknowledged the importance of collective will, the formation of collective will within existing examples under Iranian law faces numerous challenges due to various transaction costs. These costs prevent the current framework for forming collective will from reaching an efficient state. Consequently, this inefficiency has led to several negative consequences, including "inefficient allocation of resources", "a reduction in the frequency of collective will formation", "delays in the formation of collective will", "avoidance of legal mechanisms for collective will formation", "non-compliance with legal formalities in collective will processes", "opportunism", and "an increase in disputes and conflicts". In this context, the article begins by defining collective will and identifying its principal manifestations under Iranian law, including collective will as it appears in legal persons and commercial companies, jointly owned property, common areas of apartment buildings, and collective agreements such as collective labor contracts and composition agreements. Afterwards, the article briefly explains the concept of transaction costs. Subsequently, various transaction costs involved in forming collective will were examined, aiming to identify issues and eventually explore solutions. It is hoped that researchers will strive to support collective will by identifying mechanisms to reduce transaction costs, thereby contributing to the country’s economic growth and development.

Keywords

References

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Economic and Commercial Law Researches
Volume 3, Issue 3 - Serial Number 11
November 2025
Pages 41-74
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