In Iran, the regulations governing public and state-owned property auctions are ambiguous. Identifying the fundamental principles of the auction system can help resolve this issue. Since legal principles govern all aspects of a legal system, they inherently demand order and regulation. Thus, when determining the legal consequences of auction formalities, statutory provisions should be consulted first. If the law is silent or ambiguous, legal principles provide guidance.



A review of relevant regulations shows that three provisions explicitly consider non-compliance with certain formalities as rendering an auction invalid, while remaining silent on others. Three other provisions do not prescribe any legal consequences for violations of formalities. This distinction, along with the designation of a supervisory authority, indicates that the legislator does not treat all auction formalities equally. By analyzing the legal consequences outlined in the only existing auction law, the underlying principles of the system, which serve as a source for supra-statutory rules, become evident.



Thus, formalities whose non-compliance leads to auction invalidity are substantive and must always be observed. Other formalities serve as procedural tools to achieve auction objectives and fall under the discretion of the primary supervisory authority. Once the auction is approved, reassessment of these procedural aspects is generally not permitted. Based on Article 167 of the Iranian Constitution and the nature of legal principles, this approach can also apply to auctions of public assets, ensuring adherence to public order despite regulatory gaps.