All posts by Joe Bradford

On The Permissibility of Contracts

The general rule for all contracts, and especially in sales, is validity. Unless something is found deficient then the contract remains valid, such as: 1- one of the contracting parties lacking legal capacity 2- one of the objects of contract containing Riba or Gharar 3- or the fact that the object of sale is expressing […]

Price-Based Deferred Sales

Salam (السَلـَـم) is a form of contract that was found in pre-Islamic Arabia. At the time the Prophet arrived in Medina, he found people dealing in this form of trade. In the Hadith of Ibn Abbas he reports: The Messenger came to Medina and he found the people making deferred sales in fruit for one […]

Insurance Regulation

Classically, scholars categorized contracts as being from one of three types. Commutative exchange (Mu’awaDat معاوضات) – Involving the voluntary exchange of good, services, and/or both for the purpose of trade. Includes: cash sales, bartering, and currency exchange. Charitable exchange (Tabaru’at تبرعات) – Involving the voluntary not-for-profit exchange of good, services, and/or both out of the […]