THE DEFERRED CONTRACTS OF EXCHANGE Al-Quran In Contrast With The Islamic Economists' Theory on Banking and Finance

• Main Author: Abdul Halim Ismail Dato' 1939- (Author)
• Format: Book
• Language: English
• Published: Kuala Lumpur Institue of Islamic Understanding Malaysia 2002
• Subjects: Banks and banking > Religious aspects > Islam; Finance (Islamic law) > Religious aspects > Islam; Contracts (Islamic law)
• Online Access: Click Here to View Status and Holdings.

 A singularly important category of commercial contracts in Islam is the contracts of exchange or 'uqud al-mu'awadhat. These contracts are mubah or jaiz, that is legitimate, in the view of practically all the major mazhabs (schools of jurisprudence) in Islam. Their legitimacy has been variously derived by fuqaha' (early scholars of jurisprudence) and Shari'ah scholars from all the principal sources of Shari'ah of Al- Quran, Al-Sunnah, Al-Ijma' and Al-Ijtihad. The contract of exchange may be cash or deferred. It is cash when the settlement of the considerations of both the offeror and the offeree is on immediate or cash basis. It is deferred when the settlement of the consideration of either the offeror or the offeree is on deferred basis. This paper focuses on the deferred contracts of exchange.