Repaying a loan in a different currency
Posted by Joe in Finance, Islamic Banking, Islamic Finance on May 13, 2012
A questioner asks:
I purchased something for someone in US dollars equaling 6k in Airline tickets. Now he wants to pay me back, but we live in the Emirates and he can only pay in UAE dirhams.
Can I take dirhams as payment? What if he pays me off in installments?
Answer:
In the name of Allah, Merciful benefactor, Merciful redeemer
Whenever you are recovering a debt, you have the right to demand payment in the original currency if you choose. However, you have the option to accept payment in any other currency with two conditions:
1- That the debt is calculated according to the spot exchange rate for that currency.
2- That there is no debt liability that is left after payment.
For example:
Above, you mentioned that you loaned dollars and now will accept dirhams. Let’s say you loaned this amount a year ago today
- On May-16-2011 6000USD = 22038.99AED
- On May-16-2012 6000USD = 22037.88AED
Despite the decrease of 1.11AED, you would take 22037.88AED as payment for your debt today, and the debtor should pay you in total. Even if the amount went up, you would still take whatever amount resulted from the current exchange rate. Paying off part of the debt and leaving off part of it is not permissible. By paying off the debt in part, you allow endless speculation on currency prices, which could lead to exploitation of currency fluctuations.
The proof for this is the hadith of Ibn Umar found in the Sunan where he says “there is no harm in doing so if it is at market price and no debt remains between you.”
And God knows best.
Say/Don’t say Lesson 001: Musa’s Pen
Posted by Joe in Multimedia, Say/Don't Say on May 13, 2012
Ever wondered how to say somethings in Arabic, and how NOT to say them?
In this series we will cover common phrases, expressions, and grammar rules with practical examples, all in 5 minutes or less!
Quack Doctors, Conspiracies, and Responsible behavior
Posted by Joe in Law, Legal Theory, philosophy, policy, Social Sciences, Society on May 2, 2012
Abu Dawud narrates through his isnad that the Prophet said, “He who practices medicine but is not known for medicine, is liable.”
(مَنْ تَطَبَّبَ، وَلَا يُعْلَمُ مِنْهُ طِبٌّ، فَهُوَ ضَامِنٌ)
This hadith outlines for us to broad legal concepts in Islamic law: negligence and willful misconduct.
Here the inverse of the Prophet’s statement “but is not known for medicine” refers to the person qualified to practice medicine. When a person is qualified to practice a profession or offer advice in an area of expertise, they are expected to maintain decorum and adhere to the professional principles and ethical behavior specific to that profession. When they neglect standards and fail to exercise what a reasonably prudent person would take into consideration while practicing their profession, they are liable for the harm and damages they cause. The inverse of this hadith would seem to indicate that the professionally qualified person is not liable, in lieu of his qualifications. This however is not the case, as the inverse of this statement agrees with the ruling in the hadith when specified by two other evidences: other texts such as “No harm or reciprocating harm,” etc. and consensus that anyone practicing medicine who engages in misconduct and/or negligent behavior is liable.
When a person offers professional advice or practices a profession he is unqualified for, the ruling mentioned expressly in this hadith applies. This person will be liable for damages and harm resulting from their misconduct and misrepresentation, however will not be held fully responsible for death and bodily harm because they would not have been able to practice without some sort of permission from the person harmed.
This hadith is an important reminder to people who profess facts to others, spin conspiracy theories based on conjecture, and make baseless claims about issues which they are wholly unqualified to pass judgment on. Even worse is when this translates into practicing “Prophetic Medicine” without having the foggiest what that means, or warning against all forms of vaccinations, or generally promoting ideas that are harmful to our health.
Let’s remember to be responsible in all that we do and say.
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