According to article 7 of the Civil Code of Iran foreign nationals resident in Iranian territory shall with in the limits laid down by treaties, be bound by the laws and decrees of the Government to which they are subject in questions relating to their personal status and capacity, and similarly in questions relating to rights of inheritance.

As an example an individual of 18 years of age is considered of full age under Iranian Judicial system while he is considered as a minor child under the judicial system of the country of which he is a citizen.

With due consideration to article 962 of the Iranian Civil Code which mention:

"Determination of the capacity of any person to contract is to be in accordance with the law of his own country, nevertheless, in the case of a foreign national who carried out a civil contract in Iran for which, according to the law of his own country, he did not possess capacity or possessed only a particle capacity, and if, apart from his foreign nationality, he can be recognized according to Iranian law as possessing the capacity to make that contract, he will be in fact be recognized as having capacity in respect of that contract.

The foregoing recognition will not include civil contracts concerning family rights, rights of inheritance or the transfer of real estate situated outside Iran.

One of the consequences of such a rule is maintaining the stability of contract in our country and protection of the rights of the country.

It seems that the relevant article has been derived from the French jurisprudence. According to an example which was mentioned above regarding article 962, in the French System is the same procedure, and sentences with the said procedure occurs.

One of the most famous sentences in this respect which the court of Cassation has issued is namely "Lizardi". He was a Mexican and was twenty three years old. He bought some jewelry from a jeweler in Paris and so he claimed his incapacity according to the law of Mexico as far as full age under Mexican Law was twenty five years. The court rejected his claim and the Court of Cassation confirmed the verdict of the first instance court in the ground that the governing law, is the law of France. It is the same procedure in Iran.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.