Islamic Commercial Law

<p>Preface xi</p>
<p>List of Abbreviations xiii</p>
<p>Acknowledgments xv</p>
<p>Introduction: An Overview of Prohibited Elements 1</p>
<p>Usury (Riba) 2</p>
<p>Ambiguities in a Contract (Gharar) 3</p>
<p>Gambling (Maysir) 4</p>
<p>Prohibited (Haram) Properties 5</p>
<p>1 The Contract of Sale (Bay ) 7</p>
<p>Introduction 8</p>
<p>The Pillars of a Sale Contract 9</p>
<p>Prohibited Sales and Practices 14</p>
<p>Contentious Sales 19</p>
<p>Chapter Questions 29</p>
<p>Notes 30</p>
<p>2 Types and Classifications of Sales 33</p>
<p>Introduction 34</p>
<p>Trust Sales (Buyu al–amanah) 35</p>
<p>Deferred Payment Sale (Bay Bi–thaman Aajil) 36</p>
<p>Islamic Banks and a Sale Contract 37</p>
<p>Future Commodity Sale (Bay al–Salam) 39</p>
<p>Manufacturing Sale (Bay al–Istisna ) 43</p>
<p>Currency Exchange (Bay al–Sarf) 47</p>
<p>Chapter Questions 49</p>
<p>Notes 50</p>
<p>3 The Contracts of Employment and Lease (Ijarah),</p>
<p>Borrowing (I arah), and Reward (Ja alah) 51</p>
<p>Introduction 52</p>
<p>The Pillars of the Ijarah Contract 53</p>
<p>The Contract of Borrowing Things (al–I arah) 60</p>
<p>The Contract of Reward for Service (al–Ja alah) 61</p>
<p>Chapter Questions 64</p>
<p>Notes 65</p>
<p>4 The Contract of Agency (Wakalah) 67</p>
<p>Introduction 68</p>
<p>The Pillars of an Agency (Wakalah) Contract 69</p>
<p>The Types of Agency 70</p>
<p>Agency in Sale 71</p>
<p>Agency in Purchase 73</p>
<p>The Effects and the Rights and Liabilities of the Contracting Parties 74</p>
<p>An Agent Appointing Another Agent 75</p>
<p>Unauthorised Agency (al–Fadhalah) 76</p>
<p>Termination of an Agency 76</p>
<p>Chapter Questions 77</p>
<p>Notes 78</p>
<p>5 The Contract of Loan (al–Qard ) 79</p>
<p>Introduction 80</p>
<p>Loan (Qard), Debt (Dayn), and Borrowing Things (I arah) 81</p>
<p>A Loan That Provides Conditional Benefi t to the Lender 82</p>
<p>Waiting or Giving Time to a Borrower Is a Commendable Act 84</p>
<p>Chapter Questions 84</p>
<p>Notes 86</p>
<p>6 The Contract of Safekeeping (al–Wadi ah) 87</p>
<p>Introduction 88</p>
<p>The Pillars of Wadi ah Contracts 89</p>
<p>Relationship Between the Parties 89</p>
<p>When Is the Depository Held Liable? 90</p>
<p>Using Deposited Money for Investment 91</p>
<p>Wadi ah and Islamic Banks 92</p>
<p>Termination of Wadi ah 92</p>
<p>The Differences Between the Contracts of Wadi ah and Qard 93</p>
<p>Chapter Questions 93</p>
<p>Notes 94</p>
<p>7 Partnership (al–Sharikat) 95</p>
<p>Introduction 96</p>
<p>Division of al–Sharikat 96</p>
<p>Capital Partnerships (Sharikat al–Amwal) 98</p>
<p>Management of Partnership (Sharikat al– Inan) 101</p>
<p>Partnership of Services (Sharikat al–a mal) 101</p>
<p>Partnership of Reputation or Creditworthiness (Sharikat al–Wujuh) 102</p>
<p>Partnership (Sharikat al– Inan/Musharakah) and Islamic Banks 104</p>
<p>Dissolution of Partnership 106</p>
<p>Chapter Questions 107</p>
<p>Notes 109</p>
<p>8 Silent Partnership (Mudarabah/Qirad ) 111</p>
<p>Introduction 112</p>
<p>Pillars of Mudarabah Contract 113</p>
<p>The Status of Sahib al–mal and Mudarib 114</p>
<p>Distribution of Profit and Treatment of Losses 114</p>
<p>Types of Mudarabah 115</p>
<p>Personal Expenses of the Mudarib 116</p>
<p>What the Mudarib Cannot Do 117</p>
<p>Void Mudarabah 117</p>
<p>Termination of Mudarabah 118</p>
<p>The Differences Between Musharakah and Mudarabah 119</p>
<p>Chapter Questions 119</p>
<p>Notes 121</p>
<p>9 Pledge, Mortgage, or Pawn (al–Rahn) 123</p>
<p>Introduction 124</p>
<p>The Pillars of Pledge (Rahn) 125</p>
<p>The Use of the Pledge by the Pledgee 126</p>
<p>Forfeiture of the Pledged Property 127</p>
<p>Chapter Questions 128</p>
<p>Notes 128</p>
<p>10 Guarantee (al–Kafalah) 129</p>
<p>Introduction 130</p>
<p>Pillars of Kafalah 131</p>
<p>The Effects of Kafalah 132</p>
<p>Immediate, Conditional, and Suspended Kafalah 132</p>
<p>Types of Kafalah 132</p>
<p>Charging a Fee for the Service of Guarantee 133</p>
<p>Letter of Guarantee 134</p>
<p>Termination of Kafalah 134</p>
<p>Chapter Questions 135</p>
<p>Notes 136</p>
<p>11 Transfer of Debt (al–Hawalah) 137</p>
<p>Introduction 138</p>
<p>Pillars of Hawalah 140</p>
<p>Types of Hawalah 140</p>
<p>Transfer of Right (Hawalat al–Haqq) 141</p>
<p>Bill of Exchange (Suftaja) 141</p>
<p>Termination of Hawalah 142</p>
<p>The Differences Between Hawalah and Kafalah 142</p>
<p>The Difference Between Hawalah and the Sale of Debt (Bay al–Dayn) 143</p>
<p>Chapter Questions 143</p>
<p>Notes 144</p>
<p>12 The Contracts of Absolution (al–Ibra) and Set–Off (al–Muqassah) 145</p>
<p>Introduction 146</p>
<p>The Subject–Matter of Ibra 146</p>
<p>The Pillars of Ibra 147</p>
<p>Types of Ibra 149</p>
<p>The Effect of an Ibra 149</p>
<p>The Differences Between Absolution (Ibra) and Gift (Hibah) 150</p>
<p>The Contract of Set–Off (al–Muqassah) 150</p>
<p>Classification of Muqassah 150</p>
<p>Chapter Questions 152</p>
<p>Notes 153</p>
<p>Answers to True/False Questions 155</p>
<p>Bibliography 161</p>
<p>About the Author 165</p>
<p>Index 167</p>