Contract In Shariah

913 Words2 Pages

8. Explain principles of contracts in Shariah concept. ‘Aqd means a connection of the words of one party (ijab) to the other party (qabul) which constitute legal implication on the subject matter. Barbati in his book, Inayah ‘aka Fath al-Qadri defined contract or Al-‘aqd as a legal relationship created in conjunction of two declarations, from which flow legal consequences with regard to subject matters. The literal meaning of al-aqd are to tie (between two ends), to conjunct, to knot, to fasten and to link together.
There are three important principles of contract in Shariah concept which are:
1. Sighah - Offer (Ijab) and Acceptance (Qabul)
Mutual consent of parties is the basis of formation of contract. The Prophet stated that “It is unlawful …show more content…

According to article 101 of Majallah al Ahkam al Adliyyah, ijab is the first word spoken – for the making a disposition of property and the disposition are proved by it. There are several modes of offer in the contracts of shariah: verbal offer (kalam) where the offer is expressed by words and is not written, offer by conduct (amal) where the offer is made without any verbal words or gestures being expressed and offer in writing (kitabah) where offer can be made in written agreement. Hurriyah El- Islamy links invitation to treat under common law with principal of Al-Muasah under Islamic …show more content…

3. Ma’aqud Alaih
Subject Matter (Mahal ‘Aqd) must be mal which means something must be capable of possession for use at time of need. A contract must have mahal ‘aqd that is a place of reference for the application of its rule and which does not go against its purpose.
Conditions for subject matter to be valid are: the subject matter must exist at the time of contract to avoid gharar and risk, the subject matter can be delivered during property transaction. It is void to sell fish in the sea and the birds on the sky.
The subject of matter can be ascertained and known to contracting party to avoid future disputes. Maliki rules that unless the contracting parties have laid their eyes on the subject matter there are no valid contract made. If the subject matter is not present at the meeting, the offerer shall provide sufficient description. The subject matter must be legal. The sale of wine and pork is void even if it is according civil

Open Document