Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 22 views

    Islamic Law of Contracts

    Uploaded by

    Wajid Murad
    The Islamic law of contracts is based on principles of fairness and mutual benefit between parties. There are three main types of contracts: [1]aqd, which is a binding agreement between two parties through offer and acceptance; [2] wa'd, a unilateral promise by one party; and [3] muwaada, a bilateral promise. For a contract (aqd) to be valid under Islamic law, it requires two independent parties, a clear offer and acceptance relating to price and goods, matching of offer and acceptance, and a transfer of ownership following payment. Common contracts include sale agreements and exchange of goods or money.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Islamic Law of Contracts

    Uploaded by

    Wajid Murad
    22 views15 pages
    The Islamic law of contracts is based on principles of fairness and mutual benefit between parties. There are three main types of contracts: [1]aqd, which is a binding agreement between two parties through offer and acceptance; [2] wa'd, a unilateral promise by one party; and [3] muwaada, a bilateral promise. For a contract (aqd) to be valid under Islamic law, it requires two independent parties, a clear offer and acceptance relating to price and goods, matching of offer and acceptance, and a transfer of ownership following payment. Common contracts include sale agreements and exchange of goods or money.

    Original Description:

    Final presentation on Islamic Law and Taxation

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Islamic law of contracts is based on principles of fairness and mutual benefit between parties. There are three main types of contracts: [1]aqd, which is a binding agreement between two parties through offer and acceptance; [2] wa'd, a unilateral promise by one party; and [3] muwaada, a bilateral promise. For a contract (aqd) to be valid under Islamic law, it requires two independent parties, a clear offer and acceptance relating to price and goods, matching of offer and acceptance, and a transfer of ownership following payment. Common contracts include sale agreements and exchange of goods or money.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views15 pages

    Islamic Law of Contracts

    Uploaded by

    Wajid Murad
    The Islamic law of contracts is based on principles of fairness and mutual benefit between parties. There are three main types of contracts: [1]aqd, which is a binding agreement between two parties through offer and acceptance; [2] wa'd, a unilateral promise by one party; and [3] muwaada, a bilateral promise. For a contract (aqd) to be valid under Islamic law, it requires two independent parties, a clear offer and acceptance relating to price and goods, matching of offer and acceptance, and a transfer of ownership following payment. Common contracts include sale agreements and exchange of goods or money.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Islamic Law of

    Contracts
    Arslan Tahir
    Introduction

     The Islamic law of Contracts is the basis of all Islamic finance transactions.

     The Fiqh al muamalat (Islamic commercial jurisprudence): is a comprehensive body


    of principles and rules, designed to promote harmonious relations between
    contracting parties and avoidance of the kinds of problems in contracting that can
    result in falling-out of the contracting parties leading to costly litigation or other
    misfortunes
    The Islamic Law of contract

    •  The term used for ‘contract’ in Arabic is aqd, which means


    • - To tie between two ends, to fasten, to link
    • - In Islamic law, it means agreement, commercial arrangement, legal transaction, document or
    deed
    •  It is an agreement among parties concluded through an offer and acceptance with the
    consequences of binding legal obligation.
    • The Aqd’ ( the contract)
    • The Wa’d ( unilateral promise)
    • Muwaada or Mua’hida ( bilateral promise)
    The Islamic Law of contract
    WA’D (Promise)

    •  Wa’ad is a binding unilateral contract where a party promises


    or undertakes to carry out a unilateral contract ndertakes to
    carry out a unilateral contract
    • - A unilateral undertaking or a promise by one party to do or not
    to do certain actions in the future . The primary difference
    between a promise and a contract is that the promise is binding
    only the maker whereas a contract binds both parties.
    The Islamic Law of contract
    Bilateral Promise ( Muwaada)

    • Muwa’adah:a conditional/unconditional bilateral contract


    Example.
    • A provides a unilateral promise to B that he will purchase B’s house for
    US$ 250,000 any time within the next 12 months.
    • B gives a unilateral promise to A that he will sell his house to A for US$
    250,000 any time within the next 12 months.
    The Islamic Law of contract

    • Aqd’ ( Contract)
    • Definition
    • “ is transaction that is executed between two or more parties for
    • mutual benefit and with mutual consent”
    The Islamic Law of contract -Aqd’ ( Contract)

    • Requirements of a valid contract :


    • There must be at least two independent parties
    • There must be offer and acceptance relating to both price and asset.
    • Acceptance should match the offer.
    • There must be a material effect ( transfer of ownership) following
    exchange of asset and consideration ( Payment or Fee).
    The Islamic Law of contract
    Aqd’ ( Contract)

    • Types of Aqd’
    • 1. Compensatory contracts: where one person sells something to someone
    else for a price or other compensation. e.g. A sold his car to B for US$
    5,000.
    • 2. Non-compensatory: where one person gives something to someone else
    without any compensation e.g. Inheritance or Donation.
    The Islamic Law of contract
    Aqd’ ( Contract)

    • Components and Conditions Influencing Contracts:


    • Contracting parties
    • Subject matter
    • Offer and acceptance.
    The Islamic Law of contract
    Aqd’ ( Contract)

    • The Contracting Parties should fulfil the following conditions :


    •  Mature : Adult under Islamic law.
    • Sane : mentally sound at the time of the execution of the contract both
    temporarily or permanently.
    The Islamic Law of contract
    Aqd’ ( Contract)

    • The following are the conditions that must be met for


    Offer and Acceptance :
    • Acceptance should be absolute.
    • Connection of offer and acceptance
    • Acceptance needs to take place before the offer is withdrawn.
    The Islamic Law of contract
    Aqd’ ( Contract)

    • Sharia’a options of Sale :


    • Buy p er’s option to Rescind: before the execution of contract.
    • Option of Inspection.
    • Option of Defect: right to return if defective.
    • Option of Quality: as specified.
    Option of Price: fair price within the market range.
    The Islamic Law of contract
    Aqd’ ( Contract)

    • A classification of contracts with respect to their effect could divide them into:
    • Valid (Sahih): the components and conditions of sharia’a are met. Valid contract could
    be either :
    1- Nafiz :enforceable contract or
    2- Mawqoof :enforceable until authorised.
    • Voidable ( Fasid):sound in its essence , but is unlawful in its conditions.
    • Invalid ( Batil): not good in its essence or components.
    The Islamic Law of contract
    Contracts of Exchange

    • Exchange or the transfer of ownership of specific objects or goods either


    by exchanging :
    • Good for good ( barter trading).
    • Good for money ( Sale)
    • Money for money (Sarf)
    Thank YOU

    You might also like