In accordance with Article 196 of the Iranian Civil Code, "Anyone contracts for himself, unless the contrary of this is stipulated in contract or to be proved in future". Iranian law scholars have interpreted this provision to two different species. Some know that as confirming the theory of the “apparent will” and claim that the exception set forth in this article only regulated the legal relationship between the representative and principal, not the legal relationship between the representative and contractor. Therefore, the legal relationship between the representative and the principal is not citable against the unaware person. History of Shiite jurisprudence confirms it, too. While others believe that the exception set forth in this article only regulated the legal relationship between the representative and the contractor and the relationship between the representative and the principal is citable against him as well, although he is unaware. The first interpretation is based on the theory of the apparent will that it is rooted in the need to public policy and the second interpretation is based on the freedom of contracts. This article seeks to examine both the interpretation and the reasons for them in Iran with emphasis on the proper interpretation of Shiite jurisprudence and recognize the best. At the end of this article the second view is accepted.