1) Literal Definition Kafaalah is an Arabic word from the scale of Nasara, Yansuru. It means to join. Allah Ta'ala has 99 qualities. One is al-Kafeel as he joins (assists) in the affairs of every creation. Shar'ee Definition 'To attach a responsibility to another in a claim.' (Hidaaya) Kafaalat is permissible. This is proven from two prime sources of … [Read more...]
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FINANCIAL PROHIBITIONS IN ISLAM Stocks, bonds, T-bills, money market accounts, certificates of deposits, variable-interest checking and saving accounts, as well as a plethora of other financial jargons that have now become a reality in the life of many among us, have made earning and saving our money much more complicated than it used to be. With this ever-increasing … [Read more...]
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It is the most important and the most common of all the contracts, because it is needed and used by most people, therefore it is important to give special attention to the rules of Shari’ah concerning it. Definition of the Trade Contract The Hanafi definition: It is the exchange of a specific wealth with another wealth The Shaafi’ee definition: It is the exchange of a wealth with … [Read more...]
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[ extract from 'The Book of Wealth' by Ml. Moosa Olgar ] … [Read more...]
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Dhaman is one of the forms for legal consolidation of debts. The root of the word means "among or to include in." This is because the liability of the guarantor becomes included in what is guaranteed or includes the guaranteed right. It has also been said that it meant to join or to add, because the liability of the guaranteed is joined or added to the liability of the guarantor. Dhaman in Islamic law means "to meet someone else's … [Read more...]
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The word mudharabah is derived from "dharba on earth," which means to travel for trade or business. Allah says, "Others (making dharb on earth) traveling through the land, seeking of Allah's bounty." [74:20] This means they go from one place to another to search for or seek Allah's sustenance in trade or business. Mudharabah within Islamic law indicates the payment of a specific amount of money to a person who uses it for business and makes … [Read more...]