Professional Documents
Culture Documents
OF
CONTRACT
Contract
Definition : Offer and Acceptance of two or
more parties on a specific subject with
mutual consent.
CONTRACT IN ISLAM
CONTRACT
Subject
Matter
* Specified
* Quantified
Contractors
Wording of
Contract
* Non-restricted
* Present
* Sane
* Unconditional
* Mature
ISLAMIC LAW OF
CONTRACT
CONTRACT OF SALE (BAI)
exchange of a thing of value with
cash
ISLAMIC LAW OF
CONTRACT
TYPES
OF SALE
Fasid)
4. Valid but disliked sale (Bai Makrooh)
ISLAMIC LAW OF
CONTRACT
1. VALID SALE (Bai Sahih)
a sale is valid if all elements
ISLAMIC LAW OF
CONTRACT
V a lid S a le
(B a i S a h i h )
C o n tra c t o r tra n s a c ti o n
(A q d )
S o ld g o o d s o r
s u b j e c t m a tte r
(M u ta ' a q u a d e e n )
1
P ri c e
(T h a m a n )
2
D e l i v e ry o r p o s s e s s i o n
(Q a b z a )
o n l y i n re s p e c t o f m o v a b l e
g o o d s , n o t im m o v a b le 4
ISLAMIC LAW OF
CONTRACT
ELEMENTS
Sahih)
CONTRACT (Aqd)
ISLAMIC LAW OF
CONTRACT
ELEMENTS
CONTRACT (Aqd)
Conditions of contract (Sharaet-e-Aqd)
sale must be non-contingent
unconditional contract
under reasonable conditions
under unreasonable conditions but at market
practice
sale must be immediate
ISLAMIC LAW OF
CONTRACT
ELEMENTS
Existing
Valuable
Usable
Capable of ownership/title
Capable of delivery/possession
Specific & Quantified
Seller must have title & risk
ISLAMIC LAW OF
CONTRACT
ELEMENTS
Sahih)
PRICE (thaman) must be:
Quantified (Maloom)
Specified & certain (Mutaaiyan)
ISLAMIC LAW OF
CONTRACT
ELEMENTS
Sahih)
DELIVERY OR POSSESSION (QABZA)
Physical (Haqiqi)
Constructive (Hukmi)
ISLAMIC LAW OF
CONTRACT
2. VOID/NON EXISTING SALE (BAI
BAATIL)
certain conditions are not met. These
relate to:
ISLAMIC LAW OF
CONTRACT
VOID/NON
BAATIL) contd.!
certain conditions are not met. These relate to:
ISLAMIC LAW OF
CONTRACT
VOID/NON
relate to:
ISLAMIC LAW OF
CONTRACT
VOID/NON
relate to:
ISLAMIC LAW OF
CONTRACT
VOID/NON
contd.!
Shariah Status
Transaction is completely null and void.
Ownership doesn't transfer.
For Seller taking price is not Halal.
Transaction is haram from its inception.
ISLAMIC LAW OF
CONTRACT
EXISTING SALE BUT VOID DUE TO
DEFECT (BAI FASID)
3.
compliance to:
Conditions of a contract
Sale must be immediate not deferred to future
Sale must be non-contingent
unconditional
under reasonable conditions
under unreasonable conditions but within market
practice
ISLAMIC LAW OF
CONTRACT
Conditions of Price
quantified
specific and certain
ISLAMIC LAW OF
CONTRACT
EXISTING
Shariah Status
the subject matter should not be possessed by the
buyer
if possessed with the consent of the seller, title or
ownership will be passed to the buyer but usage of
subject matter will be impermissible
Buyer must return the goods to the seller
However if the defect is rectified the sale becomes
valid
ISLAMIC LAW OF
CONTRACT
4. VALID BUT DISLIKED SALE (BAI
MAKROOH)
sale is valid but not liked due to certain
conditions like:
sale after Juma Azan
sale after hoarding
sale by intervention of a third party while two
are negotiating
ISLAMIC LAW OF
CONTRACT
C o n tra c t o r T ra n s a c tio n
(A q d )
1
O ffe r & A c c e p ta n c e
(Ija b -o -Q o b o o l)
B u y e r & S e lle r
(M u ta ' a q u a d e e n )
1 .1
O ra l
(Q a u li )
(In p a s t te n s e )
C re d it S a le
(Is tijra r)
(e g s e ttle m e n t a t th e e n d
o f th e m o n th ) 1 .1 .2 (a )
1 .3
1 .2
Im p lie d
(Is h a ra a )
(In p a s t te n s e )
1 .1 .1
C o n d itio n s o f C o n tra c t
(S h a ra e t-e -A q d )
S ane
1 .1 .2
C a s h S a le
(T a a ti)
(e g a s in s u p e rm a rk e ts )
1 .1 .2 (b )
1 .2 .1 .
M a tu re
(If m in o r, m u s t u n d e rs ta n d
n a tu re o f tra n s a c tio n )
1 .2 .2
U n c o n d itio n a l c o n tra c t
S a le m u s t b e
n o n -c o n tin g e n t
S a le m u s t b e im m e d ia te
N o t d e fe rre d to fu tu re
(e g p ro p e rty m u s t p a s s 1 .3 .2 .
1 .3 .1 o n s a le d a te n o t o n fu tu re d a te
U n d e r re a s o n a b le c o n d itiio n s U n d e r u n re a s o n a b le c o n d itio n
b u t in m a rk e t p ra c tic e
(e g . w a rra n ty o f 1 y e a r
1 .3 .1 (a )
1 .3 .1 (b )
o n s a le o f frid g e 1 .3 .1 .(c )
Jazak-a-Allah-al-Khaira