BUSINESS AND TRANSACTIONS

• Shari'ah Compliant Business Campaign - 2006 [transcript]
  As Muslims, we do know interest is Haraam, but if we have sufficient knowledge of the background of the prohibition of interest and the core principles of interest, then it will be easier for us to abstain from interest.

• Business Laws - (Option) Condition of Taking an Appro
  Q: If the article is destroyed in the hands of the buyer in the condition that he placed the condition of option, who then is responsible for this destroyed article?
  A: The responsibility is the buyers and the article is destroyed with its value. This means that the buyer must fulfill to the seller the agreed price of sale.

• General Business Laws
  Q: What is (the definition of) a transaction of sale?
  A: It is the exchange of one commodity for another commodity with the (happy) consent of the transactors.

• Islamic Banking and Finance in the United States - report by Mufti Desai
  The above is a summary of my Islamic Banking travel in the US. The purpose is to inform the Ummah about the zeal and enthusiasm in the Ummah regarding Shari’ah compliancy in business and financing. Rasulullah [sallallaahu alayhi wasallam] said, ‘For every Ummah, there is a test and the test of my Ummah is wealth.’

• Report on the Shari'ah Compliance of Products
  In brief, let the financial community know that the Muslim community will only support the product that has the backing of the Ulama, who themselves should be those dedicated to the Sunnah.

• Mudhaarabah
  "Mudarabah" is a special kind of partnership where one partner gives money to another for investing it in a commercial enterprise. The investment comes from the first partner who is called 'rabb-ul-mal’, while the management and work is an exclusive responsibility of the other, who is called ‘mudarib’.

• Diminishing Mushaarakah
  According to this concept, a financier and his client participate either in the joint ownership of a property or an equipment, or in a joint commercial enterprise. The share of the financier is further divided into a number of units and it is understood that the client will purchase the units of the share of the financier one by one periodically

• Make Your Business Shari'a Compliant III - 2004
  If a person has no source of income, and he has to support himself and his dependants, then it is Fardh for him to earn an income. If a person does not earn an income and his dependants suffer, then he will be sinful for neglecting a Fardh act. It is Haraam (prohibited) to earn an income to express pride and arrogance. It is Mustahabb (desirable) to earn an income to fufil needs of the poor and needy and support the course of Islam. It is Mubaah (permissible) to earn an income to maintain one’s dignity and honour and avoid begging.

• Make Your Business Shari'ah Compliant II - 2003
  In conclusion, I leave you with a parting comment. If our pledge is sincere, Allah will assist us in making our businesses Shari'ah Compliant and putting Barakah in our business. May Allah Ta'ala accept this campaign and give us Tawfeeq to make our business Shari'ah Compliant, Aameen.

• Make your Business Shari'ah Compliant I - 2002
  On the day of Qiyaamat, every individual will be asked 5 questions. One is about wealth, ‘where did you earn your income and where you spent it.’ The fact that we will be asked about our income in such a crucial stage shows how important it is to earn Halaal income. Our salvation lies in that. The acceptance of our Ibaadat is dependant on that.

• Defective Contracts
  A contract can be afflicted by a number of defects that may render it invalid or incapable of generating its intended results intended for it by the shar'iah. These defects, which may inflict the will of the contractors, are generally due to four things: Mistakes, Coercion, Unfairness, Deception

• Property Damage
  Allah, subhanahu wa ta'aala, has prohibited aggression against the properties of other people and against taking it without rightful cause, and held as liable any person who damages other people's properties without rightful cause even if it were done by mistake. Therefore, anyone who damages the lawful property of the others without their permission will be held liable for retribution.

• Rulings on Partnership of Mudharabah
  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 a profit from it. This form of a contract is permissible according to ijmaa' (consensus). It was present at the time of the Prophet

• Rules of Guarantee
  Dhaman in Islamic law means "to meet someone else's obligation and to maintain a guarantee for that." This is similar to stating, "whatever you gave so-and-so will be on me." Dhaman is permissible as indicated in the Qur'an, Sunnah and by ijmaa

• Importance of Earning Halaal Income
  Earning a halaal livelihood is a command of Allah and the responsibility of every man. Hazrath Anas [radhiallaahu anhu] reports that Rasulullah [sallallaahu alayhi wasallam] has said: "It is a bounded duty upon every Muslim to earn a halaal livelihood." Earning halaal saves one from begging, consuming haraam and doubtful things which are truly harmful.

• Contracts in Trading
  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.

• Don't get Burned - 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...

• Kafaalah (Surety)
  At times, a person requires to take a loan, but the lenders fear that the borrower may not be able to repay the debt or pay timeously. The lender is prepared to advance a loan on condition the borrower offers a guarantor. The borrower then requests a third party to stand guarantee for him, and he (the third person) agrees that if the borrower fails to pay, then he himself will pay the debt. Now the lender has peace of mind that he will recover his loan.

• Wakaalah (Agency or Power of Attorney)
  In a person's life, there are many things that a person is unable to do himself, due to various reasons. He may not have the necessary skills to do it himself, for example, business, hiring, etc. or he is busy, so he has to seek another person's assistance. Or it may be that the work is so extensive and involved that it is beyond the capacity of one person to do it, so he has to share the work with someone else. Therefore, the Shari'ah grants permission for Wakaalah.

• Ijaarah (Hiring)
  Ijaarah is a basic necessity of human life. If a person wants to build a house, he may have the necessary money on hand, he may own the land. But he will require the services of an architect, builder and workers to build the house. A man may own fabric, but he will require the services of a tailor to sew his clothes. Many times it is difficult for a person to wash his own clothes because of time or because the fabric needs special care so he has to use the services of a laundry.

• Kitaabul Hawaalah (Transferral of Debts)
  'To transfer the debt from the debtor to the Muhtaal Alayhi (Haashiya Hidaaya).' (Hashiya Hidaaya) Example, Zayd owes Umar R1000. Zayd requests Bakr to pay the debt for him and he (Bakr) accepts the responsibility. Zayd is the Muheel, Umar is Muhtaal, Bakr is Muhtaal Alayhi and the R1000 is Muhtaal bihi

• A Muslim's Income and Expenditure Account
  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..."

• On Loaning
  Qardh is a form of kindness. The Prophet, sallallaahu alayhe wasallam, called it maneehah (i.e., a present or an act of kindness) because the borrower benefits from it and then returns it to the lender.

• Prohibited Sales
  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.