The Iranian legal system has adopted a relatively contradictory approach regarding the impact of contract termination on successive ownerships. Moreover, the views and reasoning of Islamic jurists have not been adequately reflected in this domain. Pursuant to Supreme Court Decision No. 810, the Iranian legislator has deemed it possible to reclaim the subject matter of a transaction from subsequent holders following termination, and has not classified subsequent transfers as legal loss (talf-e hukmi). However, under the Law on the Mandatory Registration of Transactions Involving Immovable Property, the legislator has treated subsequent transfers-subject to certain conditions-as constructive loss, thereby partially revoking the earlier precedent and deviating from its previous stance.

To analyze the effect of termination on successive ownerships, it is essential-prior to examining the acceptance or rejection of constructive loss in Islamic jurisprudence-to consider the right of possession held by the party against whom the option (khiyar) is exercised in the transaction. Although the existence of an option and the right of termination in the original contract cannot, in themselves, justify the return of the subject matter or the nullification of subsequent ownerships-since they pertain to the contract itself and not to the object of the transaction-their presence cannot be equated with their absence.

On the one hand, invalidating contracts and nullifying ownerships that have arisen in good faith would lead to disruption in the judicial system, disorder in transactional practices, and a threat to public trust and contractual security. On the other hand, the consensus of rational individuals (bana-ye ‘uqala) may be cited as the strongest argument against such invalidation and loss of ownership. This reasoning aligns more closely with the spirit of legal principles, and the foundational principle of transactional stability.

This study, which is both applied and foundational in nature, employs a descriptive methodology and relies on library-based research to examine the aforementioned issues and explore different assumptions.