Business Laws – (Option) Condition of Taking an Appro

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Business Laws Q: What is the ruling regarding the option of placing a condition (i.e. ‘Taking on appro') for the buyer or seller? A: This option is valid for both the buyer and the seller. Q: Is there a limit placed on this? A: The limit of option depends on whatever duration is placed by one of the parties, with the happy consent of the other. Q: Two persons contracted a sale, the seller himself specifies a duration of option, and the … [Read more...]

Prohibited Sales

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Issues of trade and finance The Prophet, sallallaahu alayhe wasallam, prohibited some forms of sales that people were known to use during his time. The wisdom behind this prohibition of some sales is to facilitate ease for people and not to increase prices for them. Also, it is designed to stop sales that might include risk or trickery and eliminate any sale that might instigate hatred and enmity amongst people. 1. The Prophet, sallallaahu … [Read more...]

On Loaning

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Issues of Trade and Finance The word Qardh in Arabic literally means "cutting off”. When the moneylender lends to someone, he actually cuts off some of his money and gives it to the borrower. In Islamic law, Qardh means to give money to someone that may benefit from it and pay back the same. Qardh is a form of kindness. The Prophet, sallallaahu … [Read more...]

A Muslim’s Income and Expenditure Account

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Ways and means of income, earning one's livelihood and spending such income should conform with the Shari'ah. Hadhrat Ibn Mas'ood (Radhlyallaho anho) narrates that Rasulullah (Sallallaho alaihe wasallam) said: "On the Day of Qiyaamah no one will be able to move (on the occasion of Hisaab Reckoning) until a reckoning of five things has not been taken..." … [Read more...]

Kitaabul Hawaalah (Transferral of Debts)

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BUSINESS ISSUES Advice Before approaching anything, there are three fundamental points; a) Definition, b) Subject matter, and, c) Aims and Objectives We shall discuss the literal definitions / subject matters of different subjects (Wakaalah / Kafaalah / Hawaalah / Ijaarah and Accidents) but in order to invoke the mercy of Allah Ta'ala in our discourses (disseminating knowledge, seeking knowledge and practising upon it), all our discourses are … [Read more...]

Ijaarah (Hiring)

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1) Definition a) Literal Definition Ijaarah is derived from the root word 'Ujrah' which means to reward. b) Shar'ee Definition Ijaarah is a transaction on benefits in exchange of something' (Qudoori) 2) Sources a. Qur'aan "And said one of them (the two women), 'O my father! Hire him! Verily the best of men for you to hire is the … [Read more...]