In paragraph 2 of the article 47, the real property law realizes compulsory the registration of settlement contract that is commonly enumerated amongst the consensual contracts and it stipulates in article 48 that the sanction for such a compulsion is the “unacceptability” of the ordinary settlement contracts. As for the way such unacceptability is defined and interpreted, there are numerous discrepancies between the jurists. Some present reasons supporting the formality of such contracts and believe that no contract is essentially formed in case of not registering the settlement contract and the other transactions whose registration is compulsory. The present article makes use of a descriptive-analytical method and performs searches in library resources to criticize, investigate and assess the aforementioned perspectives. The result of the investigation indicated that considering of a formality nature the contracts whose registration is compulsory, including the contracts of settlement, though appearing consistent with the visage of the articles of real property law, is distant from the other jurisprudential and legal foundations of Iran’s laws hence it seems that the formal registration of these contracts has been specified as the only condition for settlement contracts to take effect.
