Category Archives: Islamic Law

Derivatives in Islamic Finance

Andreas A. Jobst, IMF – Monetary and Capital Markets Department (MCM), has posted this article in Islamic Economic Studies (Vol. 15, No. 1) . Here is the abstract: Abstract: Despite their importance for financial sector development, derivatives are few and far between in countries where the compatibility of capital market transactions with Islamic law requires […]

Stilt on the Role of the Muhtasib in Medieval Cairo

Kristen Stilt (Northwestern University) has posted Price Setting and Hoarding in Mamluk Egypt (THE LAW APPLIED: CONTEXTUALIZING THE ISLAMIC SHARIA, Peri Bearman, Wolfhart Heinrichs, Bernard Weiss, eds., I.B. Taurus, London, 2008) on SSRN. Here is the abstract: This Article studies the legal position of the muhtasib in medieval Cairo, using the biographical information available about […]

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 […]