The requirement of

Shariah in financial
transaction

Khairuddin Zakaria
khairuddinzakaria@gmail.com

Contract
 Contract is:
 “Conjunction of a proposal or ijab and an
acceptance or qabul.”
 Another definition is: “Conjunction of the
elements of disposition, namely, proposal
(ijab ) and acceptance (qabul).”
 Connection between offer and acceptance

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 The prerequisites of Shariah contracts

The
prerequisites
of Shariah
contract

Subject
The two
Matter Statement of
contracting
of contract Contract
parties
(Mawdu’ (Sighah)
(Al Aqidan)
Al Aqd)

Capability of Puberty Clarity of

Known a Sub Male: ejaculate Conformation Connection
offer
To both Matter to be Must be in Sperms in his Sanity Maturity Use Past of offer of
Be legal night dreams
and
Parties handed existence (Akil) (Rushd)( Tense And acceptance
Female: acceptance
specification Over/delivery acceptance With offer
menstruation

The prohibited
elements
In Shariah
contracts

Deception
Duress (Ikrah) Mistake (Ghalat) (Taghrir)
To force someone An assumption about To induce Con.Party
Inequality (Ghubn)
To do something Anything but proves To think that the Trans.
That he dislikes to be inaccurate In his interest whereas
In fact it is not so.

Insignificant Excessive Deception related to

Complete Duress Deception Related
Incomplete Duress inequality Inequality The statement
(Ikrah Mulji) to deeds
(Ikrah Ghayr mulji) (Ghubn yasir) (Ghubn Fahish) (Taghrir qawli)
(homicide) (Taghrir fi’li)
Can tolerate Can not tolerate
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Question 1

What is the definition of a contract?

A1
 Contract is:
 “Conjunction of a proposal or ijab and an
acceptance or qabul.”
 Another definition is: “Conjunction of the
elements of disposition, namely, proposal
(ijab ) and acceptance (qabul).”

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Question 2

What is the important condition relating to an

offer and acceptance?

A2
 Expressing the mutual consent.
 If both offer and acceptance occur, they will
have an effect on the subject matter involved
.
 The effect of the contract will be that the
ownership will be transferred.

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Question 3

State two reasons that make a subject matter

unsuitable.

A3
 If a subject matter is not considered property of
value to one of the parties. For instance, the flesh of
a dead animal is not considered a property of value
to a Muslim.
 If a subject matter is not owned by any of the
parties, such as fish in the sea or a bird in the air, it
is not a suitable subject matter for a contract
 If a subject matter is forbidden by the Shariah, it is
not suitable for a contract. For instance, a marriage
contract is not allowed to be concluded with a
woman whom one cannot marry. Therefore, a man
is not allowed to conclude a marriage contract with
his mother, daughter, and sister among others.
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Question 4

What are the condition of a subject matter?

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A4
 1. Suitability of a Subject Matter for a
Contract.
 2. Being of a Subject Matter Known to
both Parties.
 3. Capability of a Subject Matter to be
Handed Over.
 4. Presence of a Subject Matter at the
Time of Contract.

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Question 5

Identify the major prohibited elements in a

contract?

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A5
 Duress( ikrah)
 Mistake (ghalat/khata’): as to parties, subject-
matters
 Inequality (ghubn): serious and non-serious
ghubn
 Deception (taghrir): verbal and non-verbal
deception
 Illegal goods/assets
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Question 6

What are the conditions of the contracting

parties?

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A6
 Two Contracting Parties and Their
Conditions

 A. Puberty
 B. Sanity
 C. Maturity

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Thank you
‫ﺷﻜﺮا ﺟﺰﯾﻼ‬

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