1740631375659_Islamic law of contract.pptx

Law

1. Islamic law of contract.

2. Purpose of law of contract Law of contract ensures the enforcement of lawful agreement through machinary of the state.

3. General priciples of contract: Prohibition of Riba Prohibition of uncerrtainty ( Gharrar ) Al- khiraju bidaman (entitlement of benefit is dependent upon risk or responsibility). Principle of unjustified enrichment

4. Requirements/elements of contract Existence of an agreement Existence of subject matter Capacity of the parties Agreement must be legal Genuine assent of the parties Contract to be concluded in prescribed form

5. Interpretation of contract Objective Theory Only the apparent purpose or subject matter will be taken into consideration. Subjective Theory Parties will look beyond the apparent subject matter or situation and then conclude the contract accordingly. Hanfi Fuqha support the objective theory unless context suggests a clear illegal purpose.

6. Rule of silence and implied contracts: People are not supposed to contract impliedly unless they have some disability and it becomes necessary to do so. Only exception for people without disability is bride’s silence in case of Nikah . Her silence is considered her consent.

7. Termination of offer By the parties By operation of law

8. Termination of the offer by parties: Rejected by the offeree. Withdrawn by offeror By counter offer Termination of majlis unless promised otherwise. After mentioned or specific time

9. Termination of offer by operation of law: Illegal object Death of one party Destruction of subject Loss of capacity of one party.

10. Illegality of contracts Two types Contracts contrary to Islamic law Contracts contrary to public policy

11. Contracts contrary to Islamic Law Prohibition of interest Prohibition of gambling Contracts at the time of Friday prayer Contracts promoting illegal activities Contracts involving trade of intoxicants unless it is justified for good cause  

12. Contracts contrary to public policy Contracts involving Gharrar (as it leads to disputes and problems) Contracts in restraint of trade Contracts under coercion or undue influence

13. Mistakes and doubts in Islamic law of contract Types of Mistakes Mistake of fact Mistake of writing Mistake of calculation

14. Mistake of fact: Contract will be enforceable against the parties. e.g. a person expecting from a horse that it will be flying which actually does not fly.

15. Mistake of writing Contract will be enforceable against the parties. e.g. a person writes 500 in agreement instead of 900.

16. Mistake of calculation Mistake of calculation can be rectified and contract will not be enforced without rectification. E.g. someone sells 2 items for Rs. 400 and 500 and mistakenly it is written that buyer will pay 800 for both items.

17. Theory of doubt in Islamic Law. Seller and buyer can insert terms in contract to remove different types of doubts from the transaction. With respect to criminal theory of doubt is base and it was communicated centuries ago than any other legal system. ANY QUESTIONS?????? Please refer to lecture recording for detailed discussion or discuss with me in the next session.