Effects of preventive composition in Iranian and Egyptian law

ding the right solutions to reduce bankruptcy cases is one of the most important issues in business law. The purpose of this article is to provide the Iranian legislature with appropriate solutions to reduce bankruptcy cases by comparatively examining the effects of the Arfaqi agreement between Iran and Egypt. By descriptive and analytical method and comparative study of the effects of the Arfaqi contract between Iran and Egypt, it was concluded that the Arfaqi contract in Iran is issued after the issuance of the bankruptcy order and due to the imposition of the bankruptcy title on the merchant, it is not a solution. However, in Egypt, in the latest legislative development in this country, the preventive pardon agreement has been recognized as peace. This type of contract is concluded between the trader and the creditors before the issuance of the bankruptcy order, and in practice is a barrier to declaring the trader bankrupt and prevents bankruptcy and its adverse consequences. The approval of this bill will be finalized as soon as possible.