A while back we mentioned that a member of our Team attended a 2 day course called ‘The Real Deal’ focusing on ‘The Fiqh of Business Transactions’ taught by Sheikh Tawfique Chowdhury. We would like to carry on sharing with you the notes we took during this fantastic eye opening course and we continue the series with the “Fiqh of Business Transactions In Islam”, inshallah.
The study of business regulations in the Shariah
A prelude to the study of the regulations regarding business entails the study of the following ten matters:
- Pillars of a business transaction.
- The goals and purposes of Shariah in business transactions.
- Commodities and its types.
- Trading competence.
- Conditions of business transactions.
- Conditions in business transactions.
- Choice in contracts.
- Contracts and its types.
- Defects in contracts.
- Profit and what is permissible from it.
Pillars of business
There are 3 main pillars;
- The buyer
- The seller
- The commodity and its exchange
All of the following forms of exchange are permissible in Islam
- The buyer and seller are physically present and agree verbally to the contract.
- Silent transaction: where the money and the product change hands without verbal agreement. Such a contract is permissible according to the majority of the scholars of Islam.
- Modern methods of transaction: via the internet, phone, SMS, fax, telex, TV etc… take the ruling of the non-verbal silent transaction in permissibility
Ibn Taymiyyah rahimahullah says:
“it is not obligatory upon people to stick to only certain terminologies for the purpose of contracts. It is not impermissible for them to make a contract with terminologies that others use as long as the terminologies that are used pertain to their intended meaning – even if certain phrases are preferred over others.” [AlQawaid an-Nooraniyyah Al-Fiqiyyah (2/291)]
To be continued inshallah….