Category Archives: Islamic Law
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 […]
Caveat Emptor and “As-is” sales
In terms of Islamic Law, defects in an object of sale are of two types: 1- Those that occur naturally, such as a home with a faulty foundation or a car with a cracked head. 2- Those that are initiated by a legislative prohibition; selling ground meat as chicken, when in fact it’s pork, or […]